Warning of risks from land "fever"

Land prices skyrocket

Mr. Nguyen Minh Thao, Tan Ha ward (Tuyen Quang city), has just completed the procedure to buy a piece of land in group 19, Phan Thiet ward. According to Mr. Thao, about 3 months ago, the owner of this land plot advertised it for sale for 7 billion VND. However, after only 2 months, the price has increased to 8 billion VND. Mr. Thao shared: "I heard from real estate people that when the province merges, the land price in Tuyen Quang city will increase even more, so even if I have to borrow more, I will try to buy it."

Having a real need to find residential land, however, Ms. Bui Thi Huyen, Trai Mit village, Hao Phu commune (Son Duong) could not afford to buy a piece of land even though she chose to live in the suburban area but the land price had gone up too high. Ms. Huyen said: Working in the city for a while, I also wanted to settle down, many times looking for residential land to buy. However, the price offered by the landowner or broker was very high so I had to give up.

According to Ms. Huyen, inner-city land in alleys and lanes is not less than 1 billion depending on the area and location. With favorable locations such as: Thinh Hung urban area, Tan Ha ward (Tuyen Quang city) is being advertised for about 3.6 billion VND/lot with an area of ​​5 x 18 m, an increase of nearly 1 billion VND compared to the end of 2024 or Ngoc Kim urban area, Hung Thanh ward also pushed up to 2.7 billion VND/lot 5 x 20 m, an increase of about 700 million compared to 2 months ago. With the current land price, it is difficult for workers to save up their whole life to buy - Ms. Huyen worries.

People transact land transfer at Notary Office No. 1, Tuyen Quang city.

Master Tran Thi Binh, Lecturer in Land Management, Tan Trao University, who has many years of teaching and researching land prices, said: There are two reasons why land prices are being pushed up so high in a very short time. That is, taking advantage of information about the province's merger, speculators and brokers have "inflated" land prices very high, some areas have increased by 20% - 30%, even up to 50% in just a few weeks. When land prices increase rapidly, many people panic, afraid of missing out on the opportunity, so they accept to buy.

This is disrupting the market, negatively affecting those with real needs. In addition to the information about the province merger, the land price frame will soon follow the market value, which also makes some people rush to buy, sell, and exchange to avoid high taxes. This is also the reason for the "heating up" of the land market in recent days.

People need to be alert

Master Tran Thi Binh, Lecturer in Land Management, Tan Trao University, affirmed: Land fever based on rumors is often a short-term and unsustainable phenomenon. We have witnessed many land fevers with different causes. But the common point is that when there are rumors, prices are pushed up too high and when the rumors subside or the official information is announced not as expected, land prices will immediately cool down, even cool down.

Looking back 2 months ago, before the information about the merger of Tuyen Quang - Ha Giang provinces and taking the center as Bac Quang district of Ha Giang province. At that time, many Tuyen Quang people also had the mentality of looking for land in Bac Quang to buy and at that time, Bac Quang land was considered the highest ever, in return, Tuyen Quang land was frozen. However, when the information, although not yet official, was that Tuyen Quang would become the administrative center of the two provinces of Tuyen Quang and Ha Giang after the merger, Tuyen Quang land, especially in Tuyen Quang city and neighboring areas, immediately increased rapidly.

Such local land fevers can make many people buy at high prices but find it difficult to sell when the market cools down. Speculation and buying and selling based on crowd psychology without a foundation of real development can actually cause real estate prices to fall into a state of instability.

According to Master Tran Thi Binh, merging provinces/cities is an important step in the process of administrative restructuring and urban development and this is not the reason for the current skyrocketing land prices. Because land must be managed according to the current status and if Ha Giang province merges into Tuyen Quang, there must still be a State management agency in Ha Giang and it is absolutely impossible to move all the way to Tuyen Quang. Therefore, the fact that some people rush to find and accept to buy land at unprecedentedly high prices not only affects their own financial capacity but also negatively impacts the province's real estate market.

Comrade Dinh Thi Thu Ha, Head of the Land - Surveying and Mapping Department (Department of Agriculture and Environment) affirmed: There is no shortage of land in Tuyen Quang, currently many of the most modern urban areas such as Danko Kim Phu Urban Area, New Urban Area on the banks of Lo River... are being invested in and built in Tuyen Quang city with more than enough capacity to meet the needs of the people. Therefore, rushing to buy land in areas rumored by brokers at the present time only disturbs the market, and is likely to lead to great risks.

Source: https://baotuyenquang.com.vn/canh-bao-rui-ro-tu-sot-dat-208628.html