House with 1 meter frontage, super small alley still costs billions; Nearly 60,000 people join group "calling" to stop buying houses
Land price list continues to apply until the end of 2025; Thanh Oai district stops auctioning 57 land lots; Where will be the next "hot spot" for land auctions in the suburbs of Hanoi?; Ho Chi Minh City requests guidance on dividing land into lots for sale in outlying districts.
Below is a summary of the week's outstanding real estate information.
Research on 30,000 billion VND loan package for buying, renting, building and renovating houses
This is one of the directions of Prime Minister Pham Minh Chinh at the Conference summarizing 10 years of implementing Directive No. 40 of the Secretariat of the 11th Party Central Committee on strengthening the Party's leadership over social policy credit.
Accordingly, the Prime Minister has directed central ministries and branches to continue reviewing and perfecting regulations, aiming to concentrate resources, improve the capital structure for the Vietnam Bank for Social Policies in a stable and sustainable direction; balance and provide sufficient charter capital, interest rate compensation, management fees and capital to implement new credit policies.
The study allows for an increase in the issuance limit of government-guaranteed bonds; creates conditions for the Social Policy Bank to receive ODA capital and expand capital mobilization forms... The goal is to expand the target audience, increase the lending level of credit programs, in line with the socio-economic development goals and implement national target programs in the coming period.
Research and supplement credit support policies to serve production and business activities for households with average living standards working in agriculture, forestry, fishery and salt production.
Localities need to continue to pay attention, balance, and prioritize the allocation of local budgets entrusted to the Social Policy Bank, especially capital for loans to create jobs, capital for loans to social housing, etc.
At the same time, the Ministry of Construction and other ministries and branches will research and develop a package of 30,000 billion VND (loans for buying, renting, hire-purchasing, building or renovating and repairing houses).
In addition, the Vietnam Bank for Social Policies will implement 15,000 billion VND from the issuance of government bonds and 15,000 billion VND from the entrusted local budget capital. Prioritizing capital sources for ethnic minorities in mountainous areas, especially difficult areas, remote areas, border areas, and islands.
Land price list continues to be applied until the end of 2025
Since the beginning of August 2024, many provinces and cities have encountered difficulties in handling and resolving land procedures, mainly in calculating taxes according to the 2024 Land Law. Informing localities, the Ministry of Finance said that the land price list issued by the People's Committees of provinces and cities according to the old Land Law will continue to be used until the end of 2025.
“If necessary, the Provincial People's Committee shall decide to adjust the land price list according to the 2024 Land Law to suit the actual local land prices,” said the Ministry of Finance.
The land price list is used in the following cases: calculating land use fees, rent, land use tax, income from land use right transfer. In addition, this is also the basis for calculating land management and use fees; fines, compensation for violations in the land sector and starting price for auctioning land use rights.
From 2026, the new land price list will be issued by the People's Committees of the provinces once a year to closely follow the market, instead of every 5 years as per the old regulations.
House with 1 meter frontage, super small alley still costs billions in Hanoi
Recently, the online community has been buzzing about the sale of a house in an alley on Bach Mai Street, Hai Ba Trung District. It is worth mentioning that to access this house, the buyer will have to go through an alley about 15 meters deep. The alley is not wide enough for a motorbike to pass through.
People even had to dig a hole in one side of the wall to make it easier to get around. Only this way could motorbikes get in. Passing through the alley was a small residential area with a few households living there.
Here, the house for sale has an area of 40m2 with 4 floors, full legal documents. The asking price is 5.2 billion VND.
 |
| The image of a house with a 1 meter frontage is being discussed on social networks. |
Besides the house above, the online community is also passing around the image of an equally “unique” house on Xa Dan Street, Dong Da District. The house has 3 floors, is 30 square meters wide, but the frontage is only 1 meter wide. The price of the house is equally “shocking” at 6.5 billion VND.
According to the drawing, the entire area of the house is L-shaped. To take advantage of the road frontage, the homeowner designed a straight path from the outside to the inside of the house with a length of about 4m.
Nearly 60,000 people join group “calling” to stop buying houses in Hanoi “to avoid crazy prices”
Established in April 2024, after just over 4 months of operation, a Facebook group called "Community to stop buying houses in Hanoi to avoid crazy prices" has attracted more than 59,000 participants.
The posts in the group are mostly shares, comments, and analyses about the story of soaring real estate prices in the capital. Under each post, there are hundreds of interactions, even up to thousands.
 |
| On average, this group adds about 6,000 new members each week. |
“After a very tiring time looking to buy a house in Hanoi in early 2024, I decided to stop and not care anymore. It's not that I don't want to buy, but the price of real estate and apartments keeps increasing every day, at an unimaginable rate, increasing by 30-50% within 6 months,” shared the founder of the group "calling" to stop buying houses in Hanoi.
In this character’s opinion, home buyers only have one wish: to own real estate at its true value. Therefore, the group leader decided to create a community for people with the same viewpoint to “encourage, share information, experiences and knowledge to help each other in the process of finding a house to buy in Hanoi”.
“This is a community of home buyers, members here are those who share the same opinion that the current price is unreasonable and should temporarily stop buying,” the group leader emphasized.
According to the second quarter 2024 market report of the Ministry of Construction, apartment prices in Hanoi increased by an average of 5-6.5% compared to the previous quarter and increased by 25% compared to the same period last year. This increase not only appeared in newly opened projects but also occurred in many old apartments.
For example, apartment prices in Royal City urban area (Thanh Xuan) increased by 33% compared to last year. The Pride (Ha Dong) also increased by 33%, My Dinh Song Da – Sudico (Nam Tu Liem) increased by 32%; Vinhomes West Point (Cau Giay) increased by 28%...
Thanh Oai District stops auction of 57 land lots, returns deposit
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, has issued a notice to stop organizing the auction and return the money for purchasing documents and deposits to customers.
Previously, on August 7, 2024, Truong Son Joint Stock Auction Company received a notice from 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 city".
The reason is that Thanh Oai District People's Committee needs to re-determine 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.
57 plots of land that have just had their land prices suspended are located in the Dam area of Muc Xa village, Cao Duong commune, with areas ranging from 74 - 134 m2, starting price of 8 million VND/m2.
With the above starting price (excluding taxes, fees, and charges), the deposit for the land plots only ranges from 121 - 218 million VND.
In addition to stopping the auction, the organizer will refund the registration fee and the deposit to customers who have submitted it.
Where will be the next "hot spot" of land auctions in the suburbs of Hanoi?
After the land auction that caused a stir in public opinion in Thanh Cao commune, Thanh Oai district, investors are about to enter another equally "hot" auction.
Specifically, on August 19, Hoai Duc district will auction 19 plots of land (lots LK03 and LK04) in Long Khuc area, Tien Yen commune. The area of each plot ranges from 74 - 118 m2, the starting price is 7.3 million VND/m2. The deposit ranges from 109 - 172 million VND/plot. The deadline for registration to participate in the auction is August 16.
 |
| Land lots are about to be auctioned in Hoai Duc in the near future. |
About a week later, on August 26, Hoai Duc district will auction the remaining 20 plots of land in Long Khuc area, belonging to plots LK01 and LK02. The starting price is also 7.3 million VND/m2. The area ranges from 89 - 145 m2. The deposit will be from 130 - 212 million VND/plot. The deadline for submitting auction application is August 23.
The auction format of both above is by direct voting through at least 6 rounds. The venue is the hall of the Hoai Duc district cultural, information and sports center.
According to Mr. TN, the head of a real estate office specializing in auctioned land, the Long Khuc area in Tien Yen commune, Hoai Duc district has a beautiful location and attracts more attention than the auctioned land in Thanh Oai district. Therefore, this place is likely to "follow in the footsteps" of the milestone of winning the price of 100 million VND/m2.
“In addition, the deposit for this plot of land is quite low, just under 200 million VND for each plot. This will help the teams easily carry out their plan of ‘buying and selling’. In the worst case, if the plot of land cannot be sold at a higher price to the customer, they can cancel the deposit without suffering much financial loss,” said Mr. TN.
In addition, the land auction in Hoai Duc district was held in 6 rounds of bidding. Meanwhile, in Thanh Oai, the auction only took place in one round. This could also be a factor that causes the price to continuously increase.
Currently, although the auction has not yet taken place, some individuals have publicly advertised the plots of land for sale. According to the broker, the expected winning bid price will be around 60 million VND/m2 or more. Buyers who want to own these plots will have to pay an additional difference of around 200 - 300 million VND.
Transport infrastructure is a notable highlight of Tien Yen commune. The section of Ring Road 4 passing through Hoai Duc district will be 17.1km long. Tien Yen is one of 12 communes in the district that this road runs through.
Not only that, in a meeting in early August 2024, Mr. Tran Sy Thanh, Chairman of the Hanoi People's Committee, emphasized that by 2025, the city will focus on turning Hoai Duc district into a district.
Ho Chi Minh City requests guidance on dividing land into plots for sale in suburban districts
The Ho Chi Minh City People's Committee has proposed that the Ministry of Justice and the Ministry of Construction provide clear guidance on issues related to the subdivision and sale of land with technical infrastructure at projects in communes, towns, and districts.
In this proposal, the Ho Chi Minh City People's Committee said that according to the provisions of the Law on Real Estate Business 2023 (effective from August 1), land with technical infrastructure in real estate projects that are allowed to be transferred to individuals for self-construction of houses (abbreviated as subdivision and sale of land) must be land not located in wards, districts, or cities of special urban areas, types I, II, and III.
In addition, that land is not subject to auction of land use rights for investment in housing construction projects according to the provisions of the Land Law.
For the remaining areas, based on local conditions, the Provincial People's Committee will determine the areas where projects can be established in the form of dividing land into plots and selling them to individuals to build their own houses.
According to the Ho Chi Minh City People's Committee, the city is now a special urban area, including all districts and affiliated counties. Based on the provisions of the 2023 Law on Real Estate Business, wards, districts, and cities in Ho Chi Minh City will not be allowed to establish real estate projects to divide land into plots and sell them.
However, "is the land with technical infrastructure in real estate projects in the areas of communes, towns, and districts of the special urban area of Ho Chi Minh City considered 'remaining areas' under the authority of the City People's Committee?" - Ho Chi Minh City People's Committee raised the issue.
On that basis, the Ho Chi Minh City People's Committee proposed that the Ministry of Justice and the Ministry of Construction provide clear instructions for the city to comply with the provisions of the 2023 Law on Real Estate Business.
Administratively, Ho Chi Minh City currently has 22 districts and one city. Of which, there are 5 suburban districts: Binh Chanh, Nha Be, Hoc Mon, Cu Chi and Can Gio with 5 towns and 58 communes. This is still considered the “rural” area of Ho Chi Minh City.
Information on the progress of site clearance for the new urban area project Duong Kinh - Kien Thuy
On August 15, Kien Thuy District People's Committee coordinated with functional units of Hai Phong City to organize a conference to provide information on site clearance for the new urban area of Duong Kinh - Kien Thuy.
This project is located in the administrative boundaries of Hoa Nghia ward (Duong Kinh district) and Dong Phuong and Dai Dong communes (Kien Thuy district). The urban area has a total land area of about 240.57 hectares and a total expected investment capital of up to VND 23,218 billion.
Although it is the same project, the compensation for agricultural land in Kien Thuy district is nearly 163.3 million VND/sao. Meanwhile, the compensation in Duong Kinh district is up to nearly 281 million VND/sao. With a difference of more than 117.5 million VND/sao, some households in Kien Thuy district still do not agree with the above compensation plan.
Explaining this incident, Mr. Do Duc Hoa, Secretary of Kien Thuy District Party Committee, said that due to socio-economic development conditions and land price levels, land prices in districts have always been higher than in other districts. The district's viewpoint is to always put the interests of the people first, but must comply with the provisions of the law.
Previously, Kien Thuy District People's Committee had a report asking for direction from the City People's Committee to consider resolving difficulties, problems and inadequacies in the compensation level for agricultural land prices at the project.
At the same time, the district leaders also requested the City People's Committee to consider other support measures to ensure that the compensation amount when the State reclaims agricultural land does not differ too much.
In addition, at the conference, delegates focused on clarifying issues such as crop restructuring, agricultural land price support, resettlement arrangements and compensation for architectural support, etc.
Comment (0)