Hanoi apartment prices continue to increase, land fever is mainly a trick of speculators to make money, 7 cases of land use purpose change without permission... are the latest real estate news.
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| While most other real estate segments and types decreased in interest in May 2024, Hanoi apartments were the only segment that grew with an interest rate of 9%. (Photo: Linh An) |
Hanoi apartment prices continue to increase
Batdongsan.com.vn 's big data shows that after three consecutive months of hot growth in the first half of 2024, Hanoi apartments began to slow down in April 2024. Specifically, in April 2024, the level of interest and the number of listings for Hanoi apartments decreased by 30% and 2%, respectively. However, the decline only lasted in April, from May onwards, Hanoi apartments gradually regained their "form".
While most other real estate segments and types decreased in interest in May 2024, Hanoi apartments were the only segment that grew with an interest rate of 9%. Compared to May, the interest rate remained the same in June 2024.
In fact, after just over a month of stagnation, from the end of May 2024 to the present, apartment prices continue to set a new level. This means that apartment prices in Hanoi continue to increase.
For example, according to a survey by Batdongsan.com.vn, at the Vinhomes Smart City project, 1-bedroom + 1 apartments, depending on the building, location, and balcony direction, were priced from 2.4-2.6 billion VND/apartment in late April and early May 2024, but the current asking price for this type of apartment is 2.7-2.8 billion VND/apartment. Similarly, studio apartments are priced at 1.8-1.9 billion VND, an average increase of 150-200 million VND per apartment compared to June 2024. 2-bedroom, 2-bathroom or 3-bedroom, 2-bathroom apartments in this project also increased by 200-250 million VND compared to about 2 months ago.
Gemek project also increased from 2.7-2.8 billion VND for 2-bedroom, 2-bathroom apartments to 2.750-2.9 billion VND/apartment. In particular, there are 2-bedroom, 2-bathroom apartments in this project, the owner offers the price over 3 billion VND/apartment.
The Nam Trung Yen apartments, mostly old apartments, with 2 bedrooms, also increased in price from 2.8-3 billion VND/apartment to 3.1-3.4 billion VND/apartment. The 2-bedroom, 2-bathroom apartments at the Handiresco project also increased from 4-4.2 billion VND/apartment in May to 4.3-4.5 billion VND/apartment.
The average increase of 250-300 million VND/apartment is also happening with projects on Le Van Luong Street such as Hanoi CenterPoint, Times Tower, Golden Palace or apartments located on Trung Hoa - Nhan Chinh axis.
Why did Thanh Oai district, Hanoi suddenly stop land auctions?
Thanh Oai District (Hanoi) stopped the auction of land use rights for 57 plots of land in Dam area, Muc Xa village, Cao Duong commune, and returned the money for purchasing documents and deposits from customers, citing the need to re-determine the starting price.
Truong Son Joint Stock Auction Company, the organizer of the first Thanh Oai district land auction for 57 plots of land in Cao Duong commune on August 17, suddenly announced to stop organizing the auction and return the money for purchasing documents and deposits to customers.
The above company said that the unit received a notice from the Thanh Oai District Land Fund Development Center with the content "Stop organizing the first land use rights auction for 57 land plots in Dam area, Muc Xa village, Cao Duong commune, Thanh Oai district, Hanoi".
The reason is that Thanh Oai District People's Committee re-determined the starting price for auctioning land use rights for 114 plots of land in Cao Duong commune according to the decision of Hanoi City People's Committee.
Previously, according to the announcement, 57 plots of land in the Muc Xa hamlet area, Cao Duong commune have areas ranging from 74.63-134.69m2, starting price 8,097 million VND/m2.
With the above starting price (excluding taxes, fees, and charges), the deposit for the land plots ranges from nearly 121-218 million VND.
It is known that in August, Thanh Oai district will not organize any other land auctions.
Previously, on August 10, Thanh Oai district organized an auction of 68 land lots in Ngo Ba area, Thanh Than village, Thanh Cao commune. This auction caused a stir among real estate investors and the public when the winning price was 7-8 times higher than the starting price. From the starting price of 8.6-12.5 million VND/m2, the highest winning price exceeded 100 million VND/m2.
Many people believe that the reason this auction attracted so many investors was because of the low starting price. With such a starting price, investors only have to deposit 20%, equivalent to about 200 million VND.
Buyer's Risk
Recently, the real estate market has seen strong price fluctuations, especially in the apartment segment, followed by project real estate and land plots in localities. However, with a 6-8 times increase as in the recent auction results in Thanh Oai district, it is considered too hot, even abnormal in terms of both winning price and number of participants.
Actual records and on the website Batdongsan.com.vn show that the price of residential land in some villages in Thanh Cao commune, Thanh Oai district, the land price for sale in the second quarter of 2024 is only about 27 - 30 million VND/m2. This price has increased by about 80%, from about 15 million VND/m2 in 2020 to nearly 30 million VND/m2 in 2024. Thus, the winning bid on August 10 is 2.3 - 3.7 times higher than the current common selling price.
Or through a recent survey of land prices in some suburban districts of Hanoi, although land prices have increased, especially in localities preparing to become districts or locations with advantages in infrastructure development, there has not been an unrealistic increase like the phenomenon of land auctions in Thanh Oai.
For example, the land auction at the end of June in Me Linh district, the winning bid results did not change dramatically with the winning price ranging from 20 - 40 million VND/m2, while Me Linh district still has room for development with the infrastructure system from bridges to Ring Road 4, Ring Road 3,5... Similarly, in Thach That district, land prices in some beautiful locations of Binh Yen commune recently only increased by a few million VND/m2 even though there is a lot of useful information affecting the real estate market...
Based on the above facts, many experts believe that the recent land fever is mainly a profit-making trick of speculators and brokers. Many groups of people who previously acquired land will use auctions in the area to push up prices and create a higher ground. If the auctioned lots cannot be sold, they will forfeit their deposits, and according to regulations, auction participants must pay a deposit of 20% of the total value of the land plot or land area calculated at the starting price.
According to online data from Batdongsan.com.vn, in the first 6 months of 2024, the real estate market in Hanoi recorded strong fluctuations in interest levels. Typically, the land and residential land segment is on the path to recovery after hitting bottom in 2023 with the number of searches increasing by 118% over the same period last year; private houses, townhouses and villas increased by 33%, 27% and 9% respectively. In suburban districts, Dong Anh had the strongest increase in interest level of 104%, Quoc Oai increased by 101%, Gia Lam 95%, Hoai Duc 79%, Thach That 48%...
Explaining this, experts said that it may be due to the fear that real estate prices will increase after the Land Law 2024, Real Estate Business Law 2023, and Housing Law 2023 officially take effect. On the other hand, the information that Hanoi strives to have 5 new districts by 2030 (Dong Anh, Hoai Duc, Gia Lam, Thanh Tri and Dan Phuong) also makes land in these localities attract the attention of many investors.
Mr. Nguyen Quoc Anh, Deputy General Director of Batdongsan.com.vn, predicts that from the second quarter of 2025 onwards, land plots will begin to enter the main trend of recovery; while the current "waves" are only local in some areas. Therefore, investors should carefully research the market and learn about price fluctuations through objective sources of information.
Also from the situation of real estate prices being pushed up too high compared to real value, some experts believe that the act of manipulating the real estate market to create virtual prices is very dangerous, directly affecting buyers, no different from manipulating the stock market. This makes the real estate market lack transparency and instability, while the State has no strong sanctions.
People expect that housing prices will decrease to a suitable level when the new management policies and regulations of the law come into effect soon. This is the solution for people who really need to have the opportunity to own a house soon, as the Government's goal.
In case of changing land use purpose, permission is not required.
The 2024 Land Law stipulates many more cases of land use purpose change without permission from August 1, 2024.
7 cases of land use purpose change without permission
According to the provisions of Clause 3, Article 121 of the 2024 Land Law, if it does not fall into the following 7 cases under Clause 1, Article 121 of the 2024 Land Law, it will not be necessary to request permission to change the purpose of use from the competent authority.
Specifically, those cases are: Converting rice-growing land, special-use forest land, protective forest land, production forest land to other types of land in the agricultural land group; Converting agricultural land to non-agricultural land; Converting other types of land to concentrated livestock land when implementing large-scale concentrated livestock projects.
Converting non-agricultural land allocated by the State without land use fees to other types of non-agricultural land allocated by the State with land use fees or land lease; Converting non-agricultural land that is not residential land to residential land.
Converting land for construction of public works, land used for public purposes with business purposes to non-agricultural production and business land; Converting non-agricultural production and business land that is not commercial or service land to commercial or service land.
Land use conversion must be in accordance with planning.
Changing land use purposes must still comply with planning and be approved by competent authorities, this is clearly stipulated in Article 116 of the 2024 Land Law.
Accordingly, the People's Committee of the district where the land is located is the competent authority to approve the conversion of land use purpose.
Area of land use conversion in 2024
Currently, the 2024 Land Law has no document stipulating the maximum area and limit for land use purpose conversion.
The land use limit depends on the needs of the person who wants to change the land use purpose. However, the Department of Natural Resources and Environment will examine the documents, the need to change the land use purpose, verify the field and planning to see if the limit can be fully changed.
Annual district-level land use plans are prescribed by competent authorities.
Source: https://baoquocte.vn/bat-dong-san-moi-nhat-gia-chung-cu-ha-noi-tiep-tuc-nong-ly-do-huyen-thanh-oai-tra-tien-coc-dau-gia-dat-nguoi-mua-tinh-tao-tranh-rui-ro-282864.html
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