Nghe An: Real estate market is bustling at the end of the year
(Baonghean) - With a number of newly issued legal bases such as Decision No. 827/QD-TTg dated June 12, 2020, information about the Vinh River renovation project... has immediately attracted investors and people interested in real estate in the southern area of the city, the Vinh - Cua Hoi road area...
Price increase in some local areas
Decision No. 827/QD-TTg approving the Project 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 the spirit of 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 on both sides of Vinh - Cua Lo Boulevard, has made the land in the large area east of Vinh city attract the attention of real estate investors.
On Vinh - Cua Hoi route, connecting axisVinh and Cua Lo, especially Nghi Thai, Nghi Xuan area, Mai Trang market (Nghi Xuan) next to the place where Cua Hoi bridge has just been built, connecting with the coastal road, Vinh - Cua Lo road and Binh Minh Cua Lo road to create extremely convenient traffic axes, causing land prices in this area to increase sharply.
 |
| Since the Vinh - Cua Lo Boulevard route was implemented, land prices along this area have skyrocketed. Photo: Tien Dong |
On the Vinh - Cua Hoi route, every day there are people coming to ask for land to buy for the vacant plots of land on both sides of the road. Mr. Dung (Nghi Thai) has a piece of land along the Vinh - Cua Hoi route. He has not built a house on it yet, but every day there are people asking. He bought a 200m plot of land2This land was priced at 2 billion VND in 2018, but now someone has offered nearly 4 billion VND. He said that although he knew he had made a profit, he thought the price would increase in the future, so he did not sell. Mrs. Nguyen Thi H.'s family in Nghi Xuan commune has land next to Vinh - Cua Hoi road. A few years ago, she sold a plot for only 600 million VND/100m2.2, but now the land price has increased to 18 million VND/m2making her regret it. The new owner sold the same plot of land for a quite large difference.
There is a reality that besides the real demand for price increases, there is also price inflation from buyers, resellers, brokers, and real estate brokerage centers. Land speculators, after buying a plot of residential land or land, immediately send it to brokerage centers to resell, and after selling it at a better price, the new buyer continues to send it to the brokerage center to continue selling to the next customer... Just like that, the land price is inflated quite high.
 |
| Grasping the market, many real estate companies have sent consultants to sit right on Vinh - Cua Lo Boulevard to advise customers. Photo: Tien Dong |
The southern area of Vinh City, where Vinh Market and Vinh River flow through, has long been very attractive to investors and has attracted many urban areas and projects here. The southern area of Vinh City currently has many investors investing in projects here: Tecco, Trang An - Vinh Heritage, Vinh Tan Urban Area of Hanoi Housing Investment and Development Corporation, Cua Tien - Vinh Tan of Danatol and some projects are holding land.
Land in these urban areas has increased quite a lot in the past two years due to many advantages, now with the information that Vinh River is about to be renovated, it has attracted special attention from the people. On social networks, many people have posted articles looking to buy residential land along Vinh River. In addition, many real estate brokers are also on duty to bring customers to buy plots of land in urban areas, causing land prices here to increase.
 |
| The urban space of Vinh to the South is increasingly complete, leading to a sudden increase in real estate prices in the suburbs in recent times. Photo: Lam Tung |
In residential areas, where the projects border, land prices are also pushed up very high by the people. We stopped by a resident's house in Tan Phuong block (Vinh Tan), although it is 100m from Le Mao extended road and the current road is only 4m wide, it is advertised at 13 million VND/m2. About 3-4 years ago, land prices in this area were only around 5 million VND/m2.
Mr. Pham Thanh Cong, a real estate broker at a real estate company in Vinh City, shared: Land prices in the southern part of Vinh City have been increasing continuously in recent years, although not as high as the Lenin Avenue area, however, compared to the general level of the city, they are at a high level, from 10 million VND/m2.2or more. If customers want to live in areas with synchronous infrastructure investment and are only allowed to plan residential land, they will have to pay high prices. If they accept to go to areas adjacent to projects, the price will be cheaper, but there are also many risks of being caught up in planning.
 |
| The Southwest urban area of Vinh city in Vinh Tan ward is under construction. Photo: Lam Tung |
Not only land prices, the apartment market in the southern part of the city also has a slight increase. The price of old apartments on the extended Le Mao street fluctuates from 15-16 million VND/m2.2depending on the unit, increase 3-4 million VND/m22compared to the time it was first put into use 5 years ago.
Investors hesitate
Researching in this area, we found that most of the land in the projects has been separated into separate books under the name of the owner, some projects are under the name of the investor. If people buy and sell, the investor will confirm the transaction. As for the transfer of ownership on the book, only when people build and complete according to the approved planning, then the book can be changed to the owner's name.
This has contributed to classifying certain groups of investors. Only those who have money to buy land and build houses can afford to invest in projects. If they decide to buy land and then use the land title to mortgage the bank to get money for construction, buying land in urban projects is not feasible. Because people will not have the title in their name to borrow money from the bank when the construction has not been completed.
 |
| After the $178 million Vinh River renovation project, it is hoped that it will create a boost to increase real estate values in this area. Photo: Tien Dong |
In fact, many people, when hearing the information about land for sale in the Cua Nam, Vinh Tan, and Trung Do areas, quickly looked into it. However, when they learned that they had to build houses according to the planning in terms of height and setback to be granted a certificate, they hesitated.
A representative of an urban project investor in this area shared: The fact that investors work closely has contributed significantly to keeping the construction planning intact. In the urban area, only residential land is arranged, not business land, so it really creates an ideal, quiet, and noiseless living environment for the people.
 |
| The urban areas are required by the investors to be built according to the planning before being granted the ownership certificate, so many investors are somewhat hesitant. Photo: Tien Dong |
An officer of the City Land Fund Development Center also shared: In the Southern area, the land fund for the city to plan is not much left, mainly in the hands of investors. For people, when buying land in this area, the most important thing to note is the planning, although some households have a certificate of ownership, are still allowed to trade, however, if it is in the planning, construction will not be allowed, people may even have to wait for site clearance, compensation or resettlement support. For some other areas, there is still a possibility of price inflation, so buyers need to be careful to research carefully, otherwise there may be many people buying a piece of land.