Land fever in rural Nghe An shows no signs of cooling down

Rural land "galloping"

Yen Thanh rice fields have also been heated up recently.land fever.Witnessing the land auction on April 13 in Nam Thanh commune, one can feel the exciting atmosphere. This time, Nam Thanh commune auctioned 19 land lots with a total area of ​​3,765.3 m²Although the infrastructure here has not been invested synchronously, there are only drainage ditches, the roads to the plots are still dirt roads, but there have been over 200 applications participating in the auction.
The starting price was set at 500-650 million VND, but through auction it was pushed up to 1 billion to 1.5 billion VND/lot.

Land auction area of ​​Nam Thanh commune (Yen Thanh) with 19 plots of land; poor traffic infrastructure but over 200 bids. Photo: Van Truong

According to the investigation, in addition to the land auction applications of local people, there were also some people from Vinh City, Dien Chau... who also participated in the auction. Of the 19 plots of land, there was 1 person from Dien Ky Commune (Dien Chau) who won the auction for 9 plots, while people from Nam Thanh Commune only won 4 plots. According to observations of the auction, local people only "bid" from 600-800 million VND/plot, while people from other places "bid" higher from 500-700 million VND.

A resident of Tay Ho hamlet, Nam Thanh commune shared: In 2017, the land price in this area of ​​​​Path 2 was only 200-250 million VND/plot, unexpectedly this time the land price increased 3-4 times. With this price, the villagers cannot afford to buy land for their children to build houses.

Immediately after the meetingland auctionIn Nam Thanh commune, the owners of the auctioned land lots in Dien Chau “advertised” the auctioned land lots on the spot with a price difference of 50-100 million VND/lot. Some local people who really wanted to buy land to build a house had to “bite the bullet” to buy it back.

Counting money for land transactions right in Nam Thanh commune (Yen Thanh). Photo: Van Truong

In fact, in Yen Thanh district, when communes organize land auctions, most people from other places win because they "bid" too high a price, while the real demand of people who want to buy land to build houses is rarely successful. For example, in Khanh Thanh commune, recently 22 land lots were auctioned, with starting prices from 450-550 million VND, after auctioning, the price increased to 1.2 billion VND/lot. Local people only won 2 lots, while people from other places won 20 lots.

From the high land auctions, as a strong effect leading to the increase in residential land in villages and alleys. Recently, information appeared about the approval of the province's policy to invest in building Lien Thanh Garment Factory, causing the land auctioned 2-3 years ago in the hamlet areas along National Highway 7B of Lien Thanh commune to suddenly skyrocket. This area used to cost only 1.5 - 1.7 billion VND/lot, but now it is sold for 2.3 billion VND/lot.

In Cong Thanh commune, since the An Hung factory was built in the area, land along National Highway 7 in this area has increased to nearly 3 billion VND/lot, while previously, over 1 billion VND/lot was very difficult to sell.

Ms. Dang Thi Dung - Head of the Finance Department of Yen Thanh district said: In 2021, the province assigned Yen Thanh district 150 billion VND for land. However, in the first 4 months of 2021 alone, Yen Thanh sold over 170 billion VND for land. The reason Yen Thanh exceeded the province's target for budget revenue from land is because after Tet until now, there has been a "fever" in land from the plains to the remote communes. For example, in the mountainous commune of Ma Thanh, the starting price of land is 700 million VND, after auction it increased to over 2 billion VND. Currently, the land fever has not shown any signs of abating in Yen Thanh district.

Land transactions in Yen Thanh district are bustling anytime, anywhere. Photo: Van Truong.

In Quynh Luu district, the real estate market is still "hot". In the recent land auction in Quynh Thach commune, there were 40 plots of land but there were 1,100 applications participating in the auction, people from all over came, the auction lasted from 7:30 am to 10 pm. The number of lots auctioned increased 2-3 times. Not to mention the land bought and sold also increased rapidly.

In Quynh Hong commune (Quynh Luu), in 2020, the commune organized an auction of 90 land lots with a starting price of 1 billion VND, after auctioning 1.5 billion VND/lot, but at this time the land price jumped to 3.2 billion VND/lot.

Correcting speculation and pushing up land prices

Mr. Hoang Van Bo - Chairman of Quynh Luu District People's Committee said: Direct auction reduces brokers, increases budget revenue for the State, however, there are still shortcomings, such as the phenomenon of a group of people from other places coming to Quynh Luu to bid high prices for land for "speculation", while people who want to build houses cannot win the auction, or have to buy from other groups of people at too high a price. It is very difficult to solve this situation, because direct auction is public and transparent, whoever "spends" more money wins.

For Do Luong district, the land market is also bustling. According to the report of the People's Committee of Do Luong district, in 2021, the province collected 140 billion VND from auctions per year, and in the first 4 months of the year, this district has reached over 150 billion VND.

Counting money by machine right after completing land transaction negotiation in Quynh Luu. Photo: Van Truong.

Mr. Nguyen The Phiet - Head of Housing and Real Estate Market Management Department, Nghe An Department of Construction said: The current land fever is mainly land fever in suburban areas, for project land in the city and districts, the price does not increase much. The reason for the "fever" of land in the countryside is due to the shift of investment capital of people into residential real estate, banks reduce interest rates. Not to mention the planning of Vinh City expansion, so the districts of Hung Nguyen and Nghi Loc increased prices. In particular, after the 72m road to Cua Lo was opened, the land in the neighboring areas increased more and more.

Currently, land prices in the area bordering Vinh city are showing signs of slowing down, but in rural areas in the districts they are still at high levels.

To minimize the land fever in recent times, immediately after receiving Official Dispatch No. 1454/BTNMT-TCQLĐĐ dated March 20 of the Ministry of Natural Resources and Environment on strengthening the rectification of State management of land prices, the Provincial People's Committee issued Document No. 1825/UBND.NN dated April 2 on "Strengthening the rectification of State management of land prices".

People flocked to the Agricultural Bank of Yen Thanh district to withdraw money, mainly to buy land. Photo: Van Truong

Accordingly, the Provincial People's Committee requires that the putting of real estate into business and the transfer of real estate projects must meet the conditions prescribed by the law on land, the law on investment and the law on real estate business. At the same time, it is necessary to inspect and rectify real estate brokerage activities to ensure that these activities comply with the provisions of the law.

It is recommended that localities publicly announce information on planning and plans so that people can access official information without being "interfered" with information to avoid speculators taking advantage of inflating prices, pushing up land and real estate prices for illegal profits; and take management measures after planning and land use plans are approved.

Plots of land in Son Thanh commune (Yen Thanh) are marked with signs of being bought and sold many times. Photo: Van Truong

Regulations on land use rights transfer registration, land use purpose change... must be strictly implemented, virtual transactions, land price inflation, real estate prices must be controlled; strict management must be implemented, ensuring compliance with land law regulations on land division; strict handling of acts of not putting land into use, land use behind schedule recorded in investment projects according to law - the Ministry of Natural Resources and Environment stated.

On the other hand, localities need to have a plan to proactively regulate land funds to the market by creating clean land funds to auction land use rights according to land use planning and plans.

'Fever' of land on walking street in Vinh city

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Ministry of Construction warns that land fever may still occur in some localities.

In the report on the implementation of tasks in the first 6 months of 2018, the Ministry of Construction said that the land fever has subsided, but in the coming time, land fever may still occur in some localities.