There is a phenomenon of speculative 'price inflation', Hanoi land auctions cool down, list of 8 projects in Ho Chi Minh City has legal obstacles removed

The market in the third quarter of 2024 has changed positively, but there are still local price fluctuations in some segments; land auctions in Hoai Duc (Hanoi) have cooled down, 8 projects in Ho Chi Minh City have had their legal problems completely resolved... are the latest real estate news.

Through analysis, it is shown that there are many reasons for the increase in residential real estate prices, in which the increase in selling prices is partly due to recent fluctuations in land-related costs as well as the impact of applying new calculation methods and land price tables. (Photo: Anh Phuong)

Ministry of Construction: Real estate price increase is localized in some segments

In the third quarter of 2024, real estate prices in some localities still tend to increase, especially in Hanoi, Ho Chi Minh City (HCMC) and large cities. The price increase phenomenon is localized, occurring in some areas, some types, some real estate segments, leading to an impact on increasing general prices.

Through analysis, it is shown that there are many reasons affecting the increase in residential real estate prices, in which the increase in real estate selling prices is partly due to recent fluctuations in land-related costs as well as the impact of applying new calculation methods and land price tables.

In particular, in some localities and areas, there is a phenomenon of land use rights auctions with winning bids many times higher than the starting price. The management and implementation of land use rights auctions in some areas and localities are not good; there is a phenomenon of many investors forming associations and groups to participate in the auction; paying land prices many times higher than the starting price, and then possibly "abandoning the deposit" after winning the land auction with the aim of establishing a virtual price level in the area to make a profit.

In addition, the phenomenon of "creating virtual prices" and "inflating prices" by speculators and individuals working as real estate brokers; taking advantage of people's lack of knowledge and investing according to the crowd psychology to make profits.

These are individuals who operate as freelance brokers, do not have real estate brokerage certificates, are weak in expertise, have limited legal knowledge, lack professionalism, and are weak in business ethics, leading to opportunistic business practices, colluding to raise prices, inflating prices compared to actual values, manipulating the market, causing damage to customers, and reducing the transparency of the real estate market.

There is a lack of real estate and housing supply to meet the needs of the majority of people, low-income and middle-income earners in urban areas, especially Hanoi and Ho Chi Minh City.

Some of the reasons include: Real estate businesses encounter difficulties and problems in legal procedures, especially in determining land prices, calculating land use fees, site clearance, and land allocation.

Many businesses are facing difficulties in obtaining credit loans and capital from issuing corporate bonds. Many projects that have been or are under construction have had to be temporarily suspended, delayed, or have their construction progress slowed down.

Although the Land Law 2024, Housing Law 2023, Real Estate Business Law 2023 have been promulgated and come into effect, difficulties in terms of institutions and legal regulations (land, housing, real estate business, credit, etc.) for enterprises have been basically resolved, and the supply of real estate has shown improvement. However, there are still some limitations because it takes time for newly promulgated mechanisms, policies, and laws to be effectively implemented and "come into life".

In addition, recent economic fluctuations related to the stock market, bonds, gold, etc. have affected the psychology of people and investors, leading to a trend of shifting people's and investors' cash flow to investing in houses and land as a safe "haven" for accumulated money and investment capital.

The Ministry of Construction assessed that the real estate market in the third quarter of 2024 had positive changes, difficulties and obstacles for businesses and real estate projects continued to be directed to be resolved, accordingly the real estate market was basically stable, and supply had somewhat improved.

However, there are still local price fluctuations in some segments and some areas, besides there is still a fear of making mistakes, responsibility is pushed, avoided, and resolved slowly in some localities. Therefore, in the coming time, it is necessary to continue to focus on solving difficulties and problems and ending the situation of pushing and avoiding responsibility to promote the safe, healthy and sustainable development of the real estate market.

Specifically, the Ministry of Construction will continue to organize training and dissemination to effectively implement the 2023 Housing Law, the 2023 Real Estate Business Law and newly issued detailed regulations to localities, agencies, organizations, businesses and individuals.

Preside over and coordinate with ministries and branches to direct, guide and urge localities and enterprises to effectively implement the Project "Investing in the construction of at least 1 million social housing apartments for low-income people and industrial park workers in the period of 2021-2030" to increase supply to the market.

Coordinate with the Ministry of Natural Resources and Environment, relevant ministries and branches to study and propose to competent authorities to consider piloting the model of "Real estate transaction center and land use rights managed by the State" to limit the situation of real estate trading floors and real estate brokerage activities that can collude to disrupt the market.

Focus on directing, guiding and urging localities to accelerate the renovation and reconstruction of apartment buildings, increasing supply to the market. Strengthen management and coordinate with provinces and centrally-run cities to inspect, examine and review real estate trading and business activities of enterprises, investors, real estate trading floors and real estate brokers in the area, especially in areas, projects and apartment buildings with unusual price increases.

More than 1,000 real estate businesses return to the market

The Ho Chi Minh City People's Committee has just reported to the Ministry of Construction on the housing situation and real estate market in the third quarter of 2024. Compared to the first half of last year, by the second quarter of 2024, the real estate industry in Ho Chi Minh City grew by 2.94%. Real estate business revenue in the first 9 months of this year reached VND 199,156 billion, accounting for 60.3% of other service revenue, up 6.7% over the same period.

In addition, in the first 9 months of this year, Ho Chi Minh City recorded 1,051 licensed real estate enterprises with a total registered capital of VND40,137 billion.

Regarding the implementation of housing projects, in the third quarter of 2024, in Ho Chi Minh City, there were 3 projects (2 commercial housing projects and 1 social housing project) approved for investment policy and selected investors. One project was granted a construction permit.

Last quarter, Ho Chi Minh City confirmed that it was eligible to mobilize capital for future commercial housing products for 4 projects with a total capital value of more than VND9,118,893 billion.

1,567 apartments and 44 low-rise houses of these 4 projects are all in the high-end segment. All 1,611 of these houses were also transacted in real estate during the quarter.

Access to the preferential loan package of 120,000 billion VND for social housing and housing projects for workers in Ho Chi Minh City is still "standing still" as no investor has received a loan.

Assessing the city's real estate market, the Ho Chi Minh City People's Committee said that the market has gradually recovered, the growth rate is still slow but there are positive signs.

Since the beginning of the year, the city has had 12 commercial housing projects approved for investment, 3 social housing projects completed, and more than 31,000 apartments under construction...

Hoai Duc land auction cools down

At around 5:00 p.m. on November 4, after 11 rounds, the auction of 20 land lots in Tien Yen commune - Xu Dong Long Khuc, Hoai Duc district (Hanoi) ended with the highest winning price of 103.3 million VND/m2, the lowest of more than 85 million VND/m2.

With a starting price of 7.3 million VND/m2, the highest winning bid in today's auction was more than 14 times the starting price.

Compared to the previous auction of 19 plots of land held at the end of August, today's auction has cooled down from the number of participants to the winning price.

Today's auction attracted just over 100 customers, nearly five times less than the previous auction with over 500 people and about 1,500 bidding documents.

Also starting at 7.3 million VND, the winning price in the previous session was pushed up many times. The highest winning lot was priced at 133 million VND/m2, more than 18 times higher than the starting price.

Outside the auction area this morning, there were no longer crowds of investors and brokers gathering to listen to information and sell plots of land until late at night like nearly two months ago.

However, the auctioned plots of land today are still being sold at a difference of 100-300 million VND/plot.

In addition, the management agency has taken many steps to cool down the situation. Many districts on the outskirts of Hanoi, including Hoai Duc, have temporarily suspended land auctions since the end of August to review legal issues.

Earlier this month, the Ministry of Natural Resources and Environment proposed that the Government direct localities to publicize information about depositors to avoid price inflation and profiteering through land auctions.

The Hanoi People's Committee also requested the district-level People's Committees to compile a list of cases where people paid higher prices than the market price to win the auction but did not pay according to regulations, causing market disruption. This list will be made public on the information pages of the districts and the Department of Natural Resources and Environment.

Early next week, Hoai Duc will auction 32 more plots of land (LK05 and LK06) with areas ranging from 97-172m2 also in the Long Khuc field area, Tien Yen commune, starting at 7.3 million VND/m2. The deposit ranges from 142-251 million VND/plot.

Details of 8 real estate projects in Ho Chi Minh City with completely cleared legal issues

The Ho Chi Minh City Department of Construction has just reported to the Ministry of Construction on the situation and progress of removing difficulties and obstacles of 64 real estate projects transferred by the Prime Minister's Working Group.

To handle the difficulties of the above 64 projects as well as projects in the City in general, on October 3, 2023, the City People's Committee issued the operating regulations of the Ho Chi Minh City Working Group.

In the third quarter of 2024, the Ho Chi Minh City Working Group held 1 meeting. Since its establishment, the Working Group has held 10 meetings and issued 15 notices of conclusions, considering and resolving 30 projects.

Of these, 8 projects have had their legal problems completely resolved and 22 projects are still stuck and are being consulted and handled by relevant departments, branches and units according to regulations.

The 8 projects that have had their legal problems completely resolved are: Song Viet Complex of Quoc Loc Phat Joint Stock Company; social housing of VTHouse Joint Stock Company and Tam Giao Joint Stock Company; project of Suntory Pepsico Vietnam Beverage Company Limited; Metro Star Apartment and Commercial Complex, Thu Duc City of Metro Star Investment Joint Stock Company;

Adjusting the progress of Celadon City project of Gamuda Land Joint Stock Company; 1.1ha project in Hoc Mon town, Hoc Mon district of Western Saigon Joint Stock Company; Song Da - Thang Long high-rise residential area, district 7 of Hung Thinh Incons Joint Stock Company; Binh Thanh district education area of ​​Tri Tue Company.

Source: https://baoquocte.vn/bat-dong-san-moi-nhat-co-hien-tuong-dau-co-thoi-gia-dau-gia-dat-ha-noi-ha-nhiet-danh-sach-8-du-an-tai-tphcm-duoc-go-vuong-phap-ly-292608.html