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 dirt roads, but there have been over 200 applications participating in the auction.
The starting price was given from 500-650 million VND, but through auction it was pushed up to from 1 billion to 1.5 billion VND/lot.

Land auction area of ​​Nam Thanh commune (Yen Thanh) with 19 plots of land; rudimentary traffic infrastructure but over 200 auction entries. 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 9 plots of land, while people from Nam Thanh Commune only won 4 plots of land. 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, but 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 from land transactions right in Nam Thanh commune (Yen Thanh). Photo: Van Truong

It is a fact that 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 won. For example, in Khanh Thanh commune, recently 22 land lots were auctioned, starting price from 450-550 million VND, after auction increased to 1.2 billion VND/lot. Local people only won 2 lots, the remaining 20 lots were won by people from other places.

From the high land auctions, as a strong effect leading to the increase in residential land in the village, in the alley. 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/plot, while previously, over 1 billion VND/plot 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 of land. However, in the first 4 months of 2021 alone, Yen Thanh sold over 170 billion VND of land. The reason Yen Thanh exceeded the province's target of land revenue is because after the Lunar New Year until now, there has been a "fever" of land from the plains to the remote communes. For example, in the mountainous commune of Ma Thanh, the land price started at 700 million VND, and 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 1,100 applications for 40 plots of land, people from all over came, the auction lasted from 7:30 am until 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, the price was 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 the People's Committee of Quynh Luu district said: Direct auction reduces brokers and 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 for high land prices 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 auctions are 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's revenue from auctions was 140 billion VND/year, and in the first 4 months of the year, this district 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 neighboring areas increased more and more.

Currently, land prices in areas bordering Vinh city show 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-TCQLDD 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 Yen Thanh District Agricultural Bank 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 transferring of real estate projects must meet all 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 and avoid information "noise" to avoid speculators taking advantage of inflating prices, pushing up land and real estate prices for illegal profits; and have management measures after planning and land use plans are approved.

Plots of land in Son Thanh commune (Yen Thanh) have been put up with signs for buying and selling 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 ensured to ensure 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 provisions - the Ministry of Natural Resources and Environment stated.

On the other hand, localities need to have proactive plans to regulate land funds on 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

(Baonghean.vn) - Since the city invested in walking streets, attracting tourists, creating new spaces and new highlights for the city, the rental prices of business premises on Nguyen Van Cu and Ho Tung Mau walking streets have increased rapidly.

The 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 now subsided, but in the coming time, land fever may still occur in some localities.