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| Latest real estate. (Source: Screenshot/DT) |
Rushing to "eat" according to the plan... then massively cutting losses
This time last year, many investors expected to make big profits from anticipating the planning and implementation of the 4th Ring Road in the Capital Region. Real estate projects near this ring road became the focus of investors' attention.
A series of urban area projects "anticipating" Ring Road 4 such as: Splendora Bac An Khanh, Ha Do Charm Villas, Vuon Cam, An Lac Green Symphony, Hinode Royal Park in Hoai Duc district; The Phoenix Garden urban area in Dan Phuong district; Thanh Ha urban area, Do Nghia urban area, Xuan Mai Complex in Ha Dong district... have all increased in price.
Notably, in early June 2022, the Housing and Urban Development Corporation (HUD) organized the sale of 202 villas in the Thanh Lam - Dai Thinh 2 new urban area project (commercial name HUD Me Linh Central) in Me Linh district, through competitive bidding and achieved a successful bidding rate of up to 98% (198 units).
Most of the products put on the market have resulted in a price difference of several hundred million VND compared to the starting price, with some properties having a difference of several billion VND. However, contrary to the profit expectation from anticipating the planning, when the Ring Road 4 project was started, real estate products in the "anticipating" projects are being sold at a loss.
According to a survey, many villas and garden houses (townhouses) at the HUD Me Linh Central project are being sold at a loss. The amount of loss compared to the purchase contract price is about several hundred million VND/unit.
For example, 2 villas at the HUD Me Linh Central project, area 250m2/unit, located opposite the flower garden, are being sold at a loss of nearly 11.3 billion VND, equivalent to 45 million VND/m2 (including land and construction costs). The current selling price is nearly 500 million VND/unit lower than the contract price, and buyers can also negotiate further.
Surveying real estate trading channels, at the HUD Me Linh Central project, in mid-2022, the selling price fluctuated from 48-55 million VND/m2, now it has decreased to an average of 42-54 million VND/m2; Vuon Cam urban area in mid-2022 fluctuated from 58-85 million VND/m2, now it has decreased to 52-61 million VND/m2...
Similarly, in mid-2022, the selling price of townhouses and villas at Ha Do Charm Villas fluctuated from 90-115 million VND/m2, but now it has decreased to 86-95 million VND/m2. For example, a semi-detached house with an area of 190m2 is priced at 86 million VND/m2; a corner house with an area of 345m2 is priced at 95 million VND/m2.
Faced with the phenomenon of investors rushing to "follow" the 4th Ring Road of the Capital region, many experts warn that although this route passing through localities will "heat up" the real estate market, there are also many potential risks if investors have not determined the planning boundaries, corridors, coordinates, landmarks, etc.
Therefore, before investing in real estate in these areas, investors need to prepare, especially the time waiting for the project to be implemented.
Mr. Nguyen Van Dinh - Chairman of the Vietnam Real Estate Brokers Association - said that newly built and expanded traffic infrastructure really brings great value to neighboring real estate. However, the implementation of these infrastructure projects must be long-term.
"Information about the overheating and 'land fever' is just a trick of the 'drivers' to create market waves. Investors need to be very careful, learn carefully about the market, understand the planning and liquidity to avoid the risk of burying capital," Mr. Dinh warned.
According to economic expert Dinh The Hien, in the period of 2020-2022, real estate prices in the areas of Hanoi's Ring Road 4 and Ho Chi Minh City's Ring Road 3 will be inflated by planning, reaching levels equal to or even higher than the actual price when the road is completed.
The discount is just a peak discount, not a reasonable price. A reasonable discount is a price that matches the needs and payment ability of the buyer to create a real transaction.
This expert also believes that real estate investment today requires investors to have qualifications and investment knowledge, focusing on investing in products with real value, which can be exploited for living, for rent, and bring immediate profits.
Quang Tri is about to auction more than 200 land lots
In August and September, 204 plots of land in Vinh Linh, Hai Lang and Gio Linh districts, Quang Tri province will be auctioned. The highest starting price is over 3.4 billion VND/plot.
Dat Viet Joint Stock Auction Company will organize an auction of the right to use 124 land lots, which are assets of the Project Management Board, Land Fund Development and Industrial Cluster, and Sea Tourism in Vinh Linh District (Quang Tri Province).
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| In August and September, 204 land lots in Vinh Linh, Hai Lang and Gio Linh districts, Quang Tri province will be auctioned. (Illustration photo - Source: Quang Tri Portal) |
Accordingly, of the 124 auctioned land lots, there are 14 land lots in small residential areas of Vinh Hoa commune; 13 land lots in residential area 1, Tien An village, Vinh Son commune; 32 land lots in residential area of Tan Hoa village, Vinh Thai commune; 45 land lots in the land northwest of Hoa Ly Hai residential area, Cua Tung town; 19 land lots in Tan An rural residential area, Hien Thanh commune and 1 land lot in residential area of hamlet 3, Ho Xa town.
The area of the auctioned plots ranges from 168 to 560 m2. Starting price ranges from 177 million VND to over 3.4 billion VND/plot. Auction participants must deposit 20% of the total value of the plot.
The price announcement is expected to start at 7:30 a.m. on August 20 at the Vinh Linh District People's Committee hall.
In Hai Lang district, on the morning of August 31, Bao Minh Joint Stock Auction Company will organize an auction of the right to use 7 land lots, which are assets of the Project Management Board, Land Fund Development and Industrial Cluster of Hai Lang district.
Of the 7 auctioned land lots in Hai Hung commune, there are 2 lots in Phu Tan hamlet, Lam Thuy village and 5 lots in Veng hamlet, Kinh Duy village.
The area of auctioned land lots ranges from 196 – 280 m2. Starting price ranges from over 156 million VND to 420 million VND/lot.
The auction was held at the hall of the Cultural House of Hai Hung commune, Hai Lang district.
In Gio Linh district, on the morning of September 9, Nam Phuong Joint Stock Auction Company will also organize an auction of 73 land lots which are assets of the Project Management Board, Land Fund Development and Industrial Cluster of Gio Linh district.
Specifically, 49 auctioned land lots belong to the Gio Son commune residential development project and 24 land lots belong to the Gio Hoa commune residential development project.
The area of the auctioned plots ranges from 216 – 419 m2. Starting price ranges from 295 million VND to nearly 1.4 billion VND.
The price announcement took place at the hall of Gio Linh District People's Committee.
The auctions of the 204 plots were all held in the form of indirect voting, using the ascending price method.
Dong Thap: Real estate market tends to grow slowly
Dong Thap Department of Construction has just issued Report No. 1400/BC-SXD on the announcement of information on housing and real estate market in Dong Thap province in the second quarter of 2023. Accordingly, the real estate market in Dong Thap province tends to grow slowly in most segments.
Of which, the land real estate segment has the highest transaction volume; the industrial real estate segment has not met market demand due to limited supply; real estate is housing, resort and commercial still developing slowly because most housing projects are in the investment preparation stage.
According to the report, the real estate market in Dong Thap province is operating normally and housing projects are being implemented. In addition, the locality continues to call for investors to participate in developing housing projects in the province. Currently, there are a number of projects being implemented in the province, including: Song Hai Long social housing in Phu Hoa hamlet, Tan Phu Dong commune, Sa Dec city; Commercial housing in Phu Long hamlet urban residential area and Tan Quy Tay townhouse area in Sa Dec city; Vinh Hoan workers' housing in Cao Lanh city. In addition, there are a number of housing projects that are carrying out project preparation procedures according to regulations.
Urban areas in Dong Thap province are developing, with increasingly improved facilities, quality of life, employment and business conditions always convenient, leading to population attraction and growth. However, the land fund in this area is still very limited, while demand is increasing; investment participation in housing projects from economic sectors is still low; the gap between supply and demand leads to high real estate prices as at present.
In the second quarter of 2023, continue to invest in 2 commercial housing projects: Phu Long Urban Area, Tan Phu Dong Commune, Sa Dec City, with an area of 15.11 hectares, investment capital of more than 1,011 billion VND and Tan Quy Tay Townhouse Project, Tan Quy Tay Commune, Sa Dec City, area of 0.389 hectares, investment capital of nearly 82.5 billion VND.
Currently, Dong Thap continues to implement a project of Song Hai Long Social Housing Area, in Phu Hoa Hamlet, Tan Phu Dong Commune, Sa Dec City, implemented by Song Hai Long Dong Thap Construction and Trading Company Limited. This social housing area has an area of 0.8 hectares, with an investment capital of more than 75 billion VND.
There is a worker housing project in Ward 11, Cao Lanh City, implemented by Vinh Hoan Joint Stock Company. This project has an area of 1.99 hectares, with an investment capital of 90 billion VND. In the second quarter of 2023, in Dong Thap province, only 528 land plots and 57 individual houses were transacted.
Not using or abandoning land can result in fines and loss of land use rights.
The current Land Law does not have specific regulations on what is abandoned land. However, abandoned land can be understood as land that has not been put into use for a long time, causing waste of land resources, even losing the value and purpose of use of the land. Abandoned land that has not been put into use for a certain period of time will be reclaimed by the State, at which time the land user will lose the right to use this land area.
Land use rights are the rights of subjects to exploit the utility and enjoy the benefits from the use of land allocated, leased by the State or transferred from other subjects through conversion, transfer, lease, sublease, inheritance, donation... from the subject with the rights.
When the State reclaims land according to the provisions of law, the person whose land is reclaimed will no longer have the right to use the land as stated above. The 2013 Land Law stipulates many cases where the State reclaims land, including reclaiming land due to non-use of the land continuously and regularly over a period of time.
Pursuant to Clause 1, Article 64 of the 2013 Land Law, the following cases of land recovery due to violations of land laws are stipulated: Land for growing annual crops that has not been used for 12 consecutive months; Land for growing perennial crops that has not been used for 18 consecutive months; Land for growing forests that has not been used for 24 consecutive months; Land allocated or leased by the State to implement investment projects that has not been used for 12 consecutive months.
According to Article 32 of Decree 91/2019/ND-CP, in case of not using land for annual crops for 12 consecutive months, land for perennial crops for 18 consecutive months, land for forestry for 24 consecutive months without force majeure, administrative penalties will be imposed.
Specifically: Fine from 500,000 - 1 million VND if the unused land area is less than 0.5ha; Fine from 1 - 3 million VND if the unused land area is from 0.5ha - less than 03ha; Fine from 3 - 5 million VND if the unused land area is from 03ha - less than 10ha; Fine from 5 - 10 million VND if the unused land area is from 10ha or more.
In addition, individuals and organizations that violate the law are also forced to use the land for the purposes assigned, leased, or recognized by the State for land use rights. In cases where the land has been sanctioned but is not put into use, the State will reclaim the land according to regulations.
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