Nghe An: Real estate market booms at the end of the year.

Price increases in some local areas.

Decision No. 827/QD-TTg approving the plan to develop Vinh City, Nghe An province, into an economic and cultural center of the North Central region by 2023, with a vision to 2030, in accordance with Resolution No. 26-NQ/TW of the Politburo, which mentions the merger of many neighboring communes into Vinh City, along with the approval of the planning for both sides of the Vinh - Cua Lo Boulevard, has made the large land area in the eastern part of Vinh City attract the attention of real estate investors.
On the Vinh - Cua Hoi route, the connecting axisVinh and Cua LoIn particular, the Nghi Thai area, Nghi Xuan district, and Mai Trang market (Nghi Xuan), which is adjacent to the newly completed Cua Hoi bridge, connecting with the coastal road, the Vinh - Cua Lo road, and the Binh Minh - Cua Lo road, have formed extremely convenient interconnected transportation axes, causing land prices in this area to increase sharply.

Since the Vinh - Cua Lo Boulevard project was launched, land prices along the area have skyrocketed. Photo: Tien Dong

Along the Vinh - Cua Hoi road, every day people come to inquire about buying vacant plots of land on both sides of the road. Mr. Dung (Nghi Thai) owns a plot of land along the Vinh - Cua Hoi road; he bought it but hasn't built a house yet, but people still ask about it every day. He bought a 200m² plot.²This land was priced at 2 billion VND in 2018, but now someone has offered nearly 4 billion VND. He said that although he knows he has made a profit, he thinks the price will increase further in the future, so he hasn't sold it. Mrs. Nguyen Thi H.'s family in Nghi Xuan commune owns land next to the Vinh - Cua Hoi road; a few years ago, she sold a plot for only 600 million VND/100m².²But now the land price has risen to 18 million VND/m².²It left her feeling incredibly regretful. The new owner had sold the same plot of land for a considerable profit.

The reality is that alongside genuine price increases, there is also price manipulation by resellers, brokers, and real estate agencies. Land speculators, after purchasing residential land, entrust it to real estate agencies for resale. After selling at a higher price, the new buyer then entrusts it to the same agency to resell to the next customer... This process drives land prices up considerably.

To capitalize on the market, many real estate companies have even deployed consultants to sit right along the Vinh - Cua Lo Boulevard to advise customers. Photo: Tien Dong

The southern area of ​​Vinh City, home to Vinh Market and the Vinh River, has long been attractive to investors and has drawn numerous urban development projects. Currently, several investors have developed projects in this area, including Tecco, Trang An - Vinh Heritage, Vinh Tan Urban Area (by Hanoi Housing Investment and Development Corporation), Cua Tien - Vinh Tan (by Danatol), and several other projects that are holding land.

Land prices in these urban areas have already increased significantly in the last two years due to various advantages, and now, with the news that the Vinh River is about to be renovated, it has attracted special attention from the public. Many people are posting on social media looking to buy residential land along the Vinh River. In addition, many real estate brokers are on standby, ready to connect and negotiate with potential buyers for plots of land in these urban areas, driving up land prices.

The urban landscape of Vinh to the south is becoming increasingly developed, leading to a dramatic increase in real estate prices in the surrounding areas in recent times. Photo: Lam Tung

Mr. Pham Thanh Cong, a real estate agent at a real estate company in Vinh City, shared: "Land prices in the southern area of ​​Vinh City have been continuously increasing in recent years. Although not as high as in the Le Nin Boulevard area, they are still high compared to the city's average, starting from 10 million VND/m²."²or higher. If customers want to live in areas with fully developed infrastructure and only residential land planning, they will have to pay a higher price. Alternatively, if they accept living in areas bordering other projects, the price will be more affordable, but this also carries a higher risk of being affected by planning regulations.

The Southwest urban area of ​​Vinh City, located in Vinh Tan ward, is under construction. Photo: Lam Tung.

Not only land prices, but the apartment market in the southern part of the city has also seen a slight upward adjustment. The price of older apartments along the extended Le Mao street ranges from 15-16 million VND/m².²Depending on the apartment, the price increases by 3-4 million VND/m².²compared to when it was first put into use 5 years ago.

Hesitant investors

Upon investigating the area, we found that most of the land in the projects has been divided into individual land titles registered under the name of the owner. Some projects have a single land title registered under the name of the developer. If people buy and sell land privately, the developer will confirm the transaction. However, the transfer of ownership on the land title only happens when the owner builds and completes the project according to the approved plan; only then will the land title be changed to the original owner's name.

This has contributed to categorizing certain groups of investors. Only those with readily available funds to buy land and build houses are capable of investing in these projects. If the intention is to buy land and then use the land title as collateral for a bank loan to finance construction, then buying land in urban development projects is not feasible. This is because people will not have a land title in their name to borrow money from the bank before construction is complete.

Following the completion of the $178 million Vinh River renovation project, it is hoped that this will create a boost, driving up real estate values ​​in the area. Photo: Tien Dong

In fact, many people, upon hearing about land for sale in the Cua Nam, Vinh Tan, and Trung Do areas, quickly inquired about it. However, upon learning that they would have to build houses according to the planning regulations regarding height and setbacks before they could be granted land titles, they hesitated.

A representative of an urban development project developer in the area shared: "The developers' strict adherence to regulations has significantly contributed to preventing the construction plan from being disrupted. The urban area only allocates land for residential purposes, not for commercial use, thus creating a truly ideal, quiet, and peaceful living environment for residents."

Many investors are hesitant because developers require construction to strictly adhere to the approved plan before issuing ownership certificates. (Photo: Tien Dong)

An official from the City's Land Development Center also shared: In the southern area, there is not much land left for the city to plan, and it is mainly in the hands of investors. For residents, when buying land in this area, the most important thing to note is the planning. Although some households have official land titles and are still allowed to transact, if the land is within the planned area, construction will not be permitted. Residents may even have to wait for land clearance, compensation, or resettlement assistance. In some other areas, there is still the possibility of price inflation, so buyers need to carefully research to avoid multiple buyers of the same plot of land.