Land in Nghe An 'hot' according to information about commune merger

The residential land area in Bao Thanh commune, Yen Thanh district is "heating up" due to information about merging communes. Photo: Hai An

The implementation of the policy of arranging and merging administrative units at commune and district levels in Nghe An has created many expectations about the potential for socio-economic development and this information has pushed land prices in many areas up quite high.

In Yen Thanh district, some websites are bustling with land sales with attractive invitations. A land broker advertised: “I have a few lots in Bao Thanh commune, priced at 1.5 billion. If it is merged, I am not sure if I can buy it for 2 billion. Those who act quickly will have a chance…”

Many brokers continuously spread rumors about the possibility of skyrocketing land prices after the merger, promoting the “buy now before it’s too late” mentality among many investors, especially those with little experience. However, according to the survey, the number of transactions only increased in some areas rumored to be administrative centers after the merger.

In Bao Thanh commune, which is considered the new administrative center of the cluster of 5 communes including Long Thanh, Vien Thanh, Vinh Thanh, Son Thanh and Bao Thanh, land prices have increased significantly. Ms. Le Thi Tam, an investor in Yen Thanh town, said: “The land plots along the provincial road in Bao Thanh used to be only about 1.4 billion VND, now they have increased to 1.5 - 1.6 billion VND. The plots along National Highway 7 have increased by about 200 million VND/plot, to 3.5 - 3.8 billion VND”.

Bustling transactions in recent days in Nghe An. Photo: Hai An

Mr. Nguyen Huu Chung - Chairman of Bao Thanh Commune People's Committee said: "Most of the information being spread is taken advantage of by speculators to "inflate prices". In fact, the commune's infrastructure has not changed significantly. Investors should be alert and consider carefully before spending money".

A similar situation is also happening in Bac Thanh commune, where rumors are spreading that Xuan Thanh, Nam Thanh and Trung Thanh communes will be merged. Land plots along National Highway 7B have increased from 150 to 200 million VND/plot in a short time, but many investors are still taking advantage of the opportunity to "collect goods" to wait for prices to rise even higher before selling.

In Dien Chau, information about the merger of Dien Kim, Dien Hoang, and Dien Hung communes into Dien Hai commune has also caused land prices in Dien Hai to increase sharply. Ms. Tran Thi Minh, residing in Dien Ky commune, said: "In early April, the price of land in the main axis of Dien Hai commune was about 2.5 billion VND/plot, now it has increased to 3 billion VND".

In Nghia Dan district, especially in Nghia Son and Nghia Lam communes, land prices, which had previously been stagnant, are also on the rise. For example, land in Nghia Lam commune has increased from VND2.2 billion to VND2.5 billion per plot in just a few weeks.

However, according to research, not all areas have recorded price increases. For example, urban area projects in Ngoc Bich commune, Dien Chau district still maintain the price of 18 - 20 million VND/ ^m2 , some communes not in the merged area have not increased land prices, and are even difficult to transact.

Investors visit land in Nghia Son commune, Nghia Dan. Photo: Hai An

The nature of sustainable real estate value is to be associated with a foundation of synchronous development in infrastructure, economy and society. Land fevers based on unverified information or without real planning and investment often have a short “lifespan”, increasing rapidly and then slowing down or declining.

Lessons from previous land fevers show that those who bought at peak prices often could not sell their goods in time when the market went down, falling into a situation of burying capital for a long time or having to cut losses due to low liquidity. Therefore, we need to be careful with the current investment wave.

An urban area in Dien Chau district has stable prices, no increase. Photo: Hai An

Mr. Chu Duy Phong - Head of Finance and Planning Department of Dien Chau district said that the real estate market in the district is currently quite vibrant, attracting the attention of many investors.

However, he also advised that during this period, investors need to be especially cautious with unclear and unverified information. Rushing to invest based on rumors alone can cause investors to fall into a "buying at the top" situation, facing many financial risks.

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Source: https://baonghean.vn/dat-nen-o-nghe-an-nong-theo-thong-tin-sap-nhap-xa-10295512.html