Nghe An: Land transactions are bustling despite prices not decreasing

Quiet floor, active trading among people

Surveying the floors in Vinh City, most of the floors are closed and have stopped trading. A representative of a large trading floor in Vinh City said: Compared to last year and the first 2 months of the year, the impact of the Covid-19 epidemic has caused transactions to decrease significantly since March. The floor is still maintained but mainly only provides online consultation for customers, with only a few transactions per month.

An apartment building on Le Mao extended street in Vinh Tan ward still has apartments for sale but the price has not decreased. Photo: VH

At a floor on Mai Hac De Street, although the floor is new and the number of transactions is better, there are only a few transactions per week, and on busy days there is only one transaction. According to the floor representative: The transactions were mainly signed before the epidemic season, but since the epidemic and especially the social isolation order, transactions have decreased significantly.

According to the explanation of a representative of a large real estate floor on Tran Phu Street, the reason for the quiet trading through the floor is because the floors are all closed to implement Directive 16, on the other hand, since the beginning of 2020, real estate businesses have not launched any new products.

Vinh City residents complete real estate transfer procedures at the one-stop department of the City People's Committee. Photo: Nguyen Hai

The situation is similar in the plots of land near the resettlement areas of 72m and 35m roads in Nghi Duc, Nghi Phu, and Quan Bau communes, with prices ranging from 9.5 to 12 million VND/m2.². Mr. Nam, a land buyer in Le Mao ward, said: Having a need to buy land, since the beginning of the year, he has gone to the outlying communes many times to buy, but in general, the prices are quite high. In other districts and towns, the situation is similar. Although land auctions are being postponed, there are still many land transactions on social networking sites.

The land plot in Hamlet 5, Nghi Phu Commune with dozens of lots put up for auction will bring revenue to Vinh City's budget. Photo: Van Hai

Mr. Le Quoc Tuan - Director of the Vinh City Land Registration Office said: From March until now, despite the epidemic, land transactions have not decreased, with about 30 - 45 land transfer contracts per day.

Abundant supply

Talking to us, real estate experts said that although land transactions still exist, the current time is not favorable for the real estate market. Transactions, supply and demand still exist, but the general trend is to wait for prices to decrease. In fact, land prices in Quynh Luu district and Hoang Mai town have been adjusted down slightly.

Specifically, the land plots along Provincial Road 537 and National Highway 48B were sold at 220 - 250 million VND/m2 at the end of 2019, but now they have decreased to about 190 - 200 million VND/m2. In Hoang Mai town in 2020, the town People's Committee plans to auction hundreds of land lots, so it is a great opportunity for people and investors.

Newly built apartment in the interspersed land area, exploiting land fund of Quynh Hong commune, Quynh Luu. Photo: Van Hai

Currently, not only Nghe An but also other countries, land transactions are sluggish. The current situation is not suitable for short-term investment but is an opportunity for medium-term investment. Mr. Nguyen Van Tu - Director of Vinh City Land Fund Development Center said that due to increasing land prices and pressure to generate revenue for the budget, compared to previous years, in 2020 the "supply" of land to the market is quite abundant.

Currently, the apartment segment and new projects in the center of Vinh City have little chance of increasing in price. However, this year, the supply of project land and resettlement land in suburban communes is quite abundant and the profitable locations all have high potential. In the short term, due to the impact of the Covid-19 epidemic, land auctions are being postponed but will reopen. Hopefully, along with the economic stimulus packages and the policy of exempting, reducing and extending land rent to support businesses that the Government has just introduced, businesses will overcome difficulties and real estate transactions can be more vibrant.

Mr. Nguyen Quoc Khanh - Chairman of Nghe An Real Estate Association

In another development, although the State Bank has tightened regulations on borrowing and purchasing real estate in overheated markets to limit virtual transactions, in Nghe An, because transactions and the real estate market are still normal, banks still provide support loans according to regulations - said a representative of a commercial bank branch in Vinh City.