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

Van Truong• DNUM_AIZAFZCACC 07:06

(Baonghean.vn) - After a period of land fever, 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 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 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 prices are still high. For example, in Xuan Thanh, Long Thanh, and 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 coming to see real estate projects in Dien Chau have been absent, some people who previously "deposited" land have now withdrawn.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 to sell quickly 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.

From April 15th until now, the rural land market has cooled down, and the auctioned land lots are deserted. (Photo taken at the Dien Phuc land auction area, Dien Chau). Photo: Van Truong

Research shows that investors with financial potential and investing with their own capital will not sell at a loss or reduce prices during this time. However, in the case of many people who have to borrow from banks 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 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 are also easily "deposited".

Tighten the real estate market

There are many reasons why land prices have cooled down recently. First of all, banks have restricted credit for speculation.real estateSome banks have temporarily suspended disbursement of real estate loans despite having their files approved for system-wide review, while many localities have temporarily suspended 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 have also strengthened 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, investors of residential and urban area projects that are not qualified for sale but have transferred and sold "green rice" in the form of capital contribution will be disciplined.

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 to 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 agencies 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, well 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 eligible to put real estate into business, projects not eligible to put real estate into business so that people can promptly grasp information about the real estate market.