Unusually high auction prices are due to Fomo mentality, Ho Chi Minh City residents whose agricultural land was confiscated are compensated with residential land, Hanoi cancels the auction result of a 10.9 billion VND land plot... are the latest real estate news.
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| Real estate prices are forecast to remain high as high-priced products are still being absorbed and real demand is huge. (Source: XD Newspaper) |
Land market in Hanoi suburbs is flourishing
The land market in the suburbs of Hanoi has recorded remarkable signs of improvement. Real estate market data for the third quarter of 2024 from Batdongsan.com.vn shows that the land market has significantly improved in terms of interest and transactions. However, this is still only a local improvement in some areas, especially in the northern provinces.
Mr. Nguyen Quoc Anh, Deputy General Director of Batdongsan.com.vn , said that up to now, compared to the first quarter of 2023, Hoai Duc land has increased by 81%, from the average market price of 55 million VND/m2 to 100 million VND/m2; Dong Anh land has increased by 53%, from the average price of 41 million VND/m2 to 63 million VND/m2. Thanh Oai land has increased by 90%, from the average price of 21 million VND/m2 to 40 million VND/m2.
Notably, in the third quarter of 2024 alone, land auctions on the outskirts of Hanoi with winning prices dozens of times higher than the starting price showed signs of abnormality. Regarding this abnormality, survey data from more than 500 real estate brokers conducted by Batdongsan.com.vn showed that 38% of brokers said that the unusually high auction prices were due to Fomo (fear of missing out) and speculation; 29% said that changes in the law had pushed up prices, and 21% said that interest groups were inflating land prices in the suburbs.
In addition to land, in the North, private house prices also have remarkable changes. Specifically, private house prices have increased from 95 million VND/m2 in the first quarter of 2021 to 173 million VND/m2 in the third quarter of 2024. Meanwhile, in the same period, land prices in the North increased from 27 million VND/m2 to 46 million VND/m2.
Notably, Hung Yen market is the focus of Northern real estate with a sharp increase in interest in both private houses and land. In the private house segment, compared to the previous quarter, the interest in private houses in this province increased by 44%, and the interest in Hung Yen land increased by 43%.
In the Southern region, the price fluctuations of land and private houses are insignificant. Specifically, the price of private houses has increased from 94 million VND/m2 in the first quarter of 2021 to 106 million VND/m2 in the third quarter of 2024. In the same time period, the price of land has also increased from 13 million VND/m2 to 17 million VND/m2.
Along with the growth of the land market, the apartment market also recorded a continued upward trend in selling prices. The Deputy General Director of Batdongsan.com.vn pointed out a paradox: the high price of apartments is due to the scarcity of supply. However, in recent times, although the supply has improved, prices have continued to increase. The reason is that the new supply has improved but the asking price is high and this price is still absorbed by the market.
In fact, the projects launched in Hanoi and Ho Chi Minh City recently have established new price levels. Specifically, in Hanoi, the average price of apartments in the Lumi Hanoi project is 79 million VND/m2, Lumiere Evergreen is 90 million VND/m2, Imperia Solar Park is 65 million VND/m2, QMS Tower is 80 million VND/m2. In Ho Chi Minh City, the average price of Eaton Park apartments is 130 million VND/m2, Fiato Uptown is 50 million VND/m2, Khai Hoan Prime is 52 million VND/m2, The Opus One (Vinhomes Grand Park) is 82 million VND/m2.
Real estate prices are forecast to remain high as high-priced products are still being absorbed and real demand is very high. In the future, real estate will maintain its position as an attractive investment channel.
HCMC: Agricultural land recovered, compensated with residential land
The People's Committee of Ho Chi Minh City has just issued a decision detailing the contents of compensation, support and resettlement when the State acquires land.
This Decision takes effect from September 25, replacing the decision with the same content issued in August 2018 and amended and supplemented in March 2020.
Regarding land compensation, according to the new decision, Ho Chi Minh City will only compensate with land of a different purpose than the type of land recovered in 3 cases. These are: recovering agricultural land and compensating with residential land or housing or non-agricultural land (not residential land); recovering non-agricultural land that is not residential land and compensating with residential land or housing; recovering residential land and compensating with non-agricultural land that is not residential land or housing.
The area of residential land, housing or non-agricultural land exchanged will be calculated based on the area of land recovered and the conversion rate.
In case the person whose land is recovered has many types of land eligible for compensation in the form of land with a different purpose of use than the recovered type or in the form of housing, the area of residential land, housing or non-agricultural land exchanged is the total area exchanged corresponding to each type of recovered land.
The conversion rate is calculated according to the formula: (Land price for calculating compensation at the land recovery location/land price for calculating land use fees, land rent or housing price at the swap location) x 100%.
In which, the land price for calculating land use fees and land rent at the swap location is determined according to Decree 88/2024. The housing price at the swap location is the approved resettlement apartment price of the project.
In case the area of land to be arranged is larger than the area of residential land, housing or non-agricultural land to be exchanged according to the standard, the person whose land is recovered must pay the money in one lump sum, not in installments or deferred payment.
The new decision of the Ho Chi Minh City People's Committee also details compensation for cases such as: damage to houses and construction works attached to land when the State reclaims land; compensation for houses and construction works that do not meet technical standards; costs of moving assets; compensation and support due to the relocation of graves; compensation for pets, etc.
Hanoi cancels auction results of a 10.9 billion VND land plot
Vice Chairman of Hanoi People's Committee Nguyen Trong Dong has just signed a decision to cancel the decision to recognize the auction results of land use rights for production and business at land plot L1 in land lot C of Thanh Thuy industrial cluster (Thanh Thuy commune, Thanh Oai district, Hanoi).
Accordingly, Decision No. 4636 dated September 14, 2023 of the Hanoi People's Committee on recognizing the auction results of land use rights for production and business at the above land plot is canceled with the following contents:
The name of the winning investor is Duc Thanh Trading Company Limited. Address: Cau Dua Area, Van Binh Commune, Thuong Tin District, Hanoi. Legal representative is Ms. Nguyen Thuy Duong.
For the auctioned land plot: Land plot L1, located in lot C, Thanh Thuy industrial cluster, Thanh Thuy commune, Thanh Oai district. The auctioned area of land plot L1 is more than 516m2.
The auction price was over 10.9 billion VND.
Duc Thanh Trading Company Limited shall not receive the deposit back. In case more than the deposit has been paid, the State shall refund the difference in amount greater than the deposit amount as prescribed.
The reason for canceling the decision to recognize the auction results is that the auction winning organization did not pay enough money for the land use rights auction within 120 days from the date of the decision to recognize the auction results.
Hanoi People's Committee assigned Thanh Oai District People's Committee (Thanh Oai District Land Fund Development Center) to notify Duc Thanh Trading Company Limited of the cancellation of the auction results of land use rights.
At the same time, propose a plan to reorganize the auction of land use rights for land plot L1 according to regulations.
In addition, the Hanoi Tax Department (Thanh Oai - Chuong My Tax Branch) coordinated with the People's Committee of Thanh Oai district and the State Treasury of Thanh Oai district to recover the deposit; refund the difference in amount compared to the deposit amount that Duc Thanh Trading Company Limited had paid according to regulations.
Also in Thanh Oai district, after more than a month of the auction of 68 plots of land in Thanh Cao commune (August 10) that caused a stir in the market, the authorities "concluded" that about 80% of the auction winners had forfeited their deposits. Of which, all plots of land with winning prices ranging from 80-100.5 million VND/m2 did not pay.
Recently, the Hanoi People's Committee sent a document to departments, branches, districts, and towns regarding the auction of land use rights. In particular, the City People's Committee requested the district-level People's Committees to make 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 websites of the districts and the Department of Natural Resources and Environment.
7 common obligations of land users under the 2024 Land Law
Article 31 of the 2024 Land Law (amended), effective from August 2024, stipulates the general obligations of land users.
Specifically as follows:
1. Use land for the right purpose, within the right plot boundaries, in accordance with regulations on underground depth and overhead height, protect underground public works and comply with other relevant legal provisions.
2. Carry out land registration declaration; fully carry out procedures when converting, transferring, leasing, subleasing, inheriting, donating land use rights, mortgaging, and contributing capital using land use rights according to the provisions of law.
3. Fulfill financial obligations regarding land according to the provisions of law.
4. Implement measures to protect land; treat, improve and restore land in areas polluted and degraded by oneself.
5. Comply with environmental protection regulations and do not damage the property and legitimate interests of relevant land users.
6. Comply with the provisions of law on finding objects underground.
7. Hand over the land when the State decides to reclaim the land according to the provisions of law.
Thus, from August 1, 2024, land users have the above general obligations.
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