Nghe An: Land prices cool down, many transactions are 'deposited'

Van Truong• May 8, 2022 07:06

(Baonghean.vn) - After a period of "feverish" land prices, the real estate market in Nghe An has shown signs of cooling down, many transactions have been "deposited", and some land auctions have few participants.

In March 2021, land fever occurred everywhere in Nghe An, and every day, investors went to see land to buy. (Photo taken at the Tang Thanh land auction area, Yen Thanh). Photo: Van Truong

Many investors "abandoned their deposits"

In Yen Thanh district, before Tet, the land market was bustling, land auctions were crowded with participants. In rural areas, crowds of people came to compete to buy and sell land, but now it has decreased significantly, land prices show signs of going sideways.

Mr. Tran Van M. in Nam Thanh commune (district)Yen Thanh)said: In 2020, I invested in 4 plots of land in the communes. In March 2022, there were customers who offered to pay a difference of 500 million VND per plot, but they did not sell because they expected the price to continue to increase. Recently, I wanted to sell but I could not "get rid" of the goods!

A land broker in Yen Thanh said: Recently, the number of calls and messages to see land has decreased significantly, many people even gave up, withdrew their deposits, and did not make transactions. In some communes in Yen Thanh district, land auctions were successful but there is still concern that investors will "give up their deposits" because the land auction is still high. For example, in Xuan Thanh, Long Thanh, Hoa Thanh communes, the land after the auction reached 1.5 - 2 billion VND.

Also in the same situation, in Dien Chau district, the real estate market which used to be very vibrant has suddenly become gloomy. According to some brokers, in recent weeks, people have been coming to see real estate projects in Dien Chau, some people who had previously "deposited" land have now withdrawn.

For land plots in communes, there are also few customers, some transactions for buying and selling have also been "abandoned". Mr. Nguyen Nam M. in Dien Ngoc commune shared: More than a month ago, I deposited 2.3 billion VND to buy a plot of land in Dien Loi, after 20 days of waiting for a quick sale without anyone asking, I had to "abandon the deposit" of 100 million VND, which is better than having to bear the interest of 2.3 billion VND on the bank loan.

Since April 15, the rural land market has cooled down, and auctioned land plots have been deserted. (Photo taken at the Dien Phuc land auction site, Dien Chau). Photo: Van Truong

Through research, it is found that for investors with financial potential, investing with their own capital, they do not sell at a loss or reduce the price during this time. However, in the case of many people who have to borrow from the bank but are "buried" in real estate, it is very difficult to sell at a loss.

The situation of deposit abandonment is also partly due to the starting price of land auctions in some localities being too high. For example, the announcement of land use rights auction in Quynh Xuan ward, Hoang Mai town on April 9, 2022, auctioned 44 land lots with the lowest starting price of 2.5 billion VND, the highest price of over 4.4 billion VND. In the mountainous commune of Tan Thanh (Yen Thanh), some land lots have a starting price of nearly 4 billion VND.

In the area of Do Luong district and Hoang Mai town, during the "hot" auctions, there were lots of land auctioned at prices as high as 5.5 to 6 billion VND. However, according to some investors, the prices were pushed up "virtually", with the current land situation showing signs of cooling down and going sideways, those lots of land are also easily "deposited".

Tighten the real estate market

There are many reasons for the recent cooling of land prices. First of all, banks are restricting credit for speculation.real estateSome banks have temporarily stopped disbursing real estate loans even though their files have been approved for system-wide review, while many localities have temporarily stopped processing procedures related to land division; at the same time, they have controlled real estate business activities in the area.

Many investors have not been able to sell their land in Lum Hoa commune, Hoa Thanh district, Yen Thanh. Photo: Van Truong

Nghe An authorities also increased inspection, examination and management of real estate trading floors and businesses. Real estate trading floors in the province will have to periodically report on business activities, real estate transfers through the floor and be responsible for the records and information provided. At the same time, they will discipline investors of residential and urban projects that are not qualified to open for sale but have transferred and sold "green rice" in the form of capital contribution.

Nghe An Tax Department strengthens management of business activities and real estate transfers of people and enterprises. Tax branches coordinate with People's Committees of districts and cities in the province to manage and prevent tax losses.

Mr. Nguyen The Phiet - Head of Housing and Real Estate Market Management Department, Nghe An Department of Construction added: Recently, the Government and related departments and branches have been rectifying and limiting the situation of "land fever". The media has actively participated, so many people are no longer in a state of frenzy over land, investors are more cautious when investing in real estate.

Infrastructure areas of Long Thanh and Yen Thanh communes are also deserted. Photo: Van Truong.

In the coming time, the Department of Construction will continue to organize propaganda and widely disseminate legal regulations on real estate investment and business so that businesses and people know and comply with the regulations; continue to thoroughly grasp and advise the Provincial People's Committee to direct the implementation of the Prime Minister's Directives on a number of solutions to promote the stable and healthy development of the real estate market.

Along with that, properly manage real estate transactions, strictly control sales information, false advertising content for illegal profit; regularly announce and update full information and status of real estate projects in the province on projects that are eligible to put real estate into business, projects that are not eligible to put real estate into business so that people can promptly grasp information about the real estate market.