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| Investors need to be very careful with land fever from planning information. Photo: Internet |
The real estate market is “hot” due to planning information
At the seminar on the real estate market viewed from the planning information held on November 2, architect Pham Thanh Tung, Chief of Office of the Vietnam Association of Architects, said the emergence of a “fever” of houses and land in some places such as Me Linh, Soc Son and Dong Anh is primarily due to Hanoi’s adjustment of the general planning and approval of a number of zoning planning projects, especially the Red River urban subdivision.
At the same time, the city is preparing to build a series of new bridges on the Red River, the 40 km section flowing through Hanoi, including Tran Hung Dao and Vinh Tuy Bridge 2 (to be completed soon), completing Belt Road 3, building Belt Road 4 and trunk roads connecting the center with districts of Hanoi that create a very favorable premise for districts such as Me Linh, Soc Son, Dong Anh when moving into the city.
In addition, many projects of new urban areas, exhibitions, large parks, and key industrial clusters have also started in these three districts, which has improved confidence in Hanoi’s development plan in the future.
This is also the reason for brokers who are very sensitive to the market to come and create a “fever” for real estate, especially in the town, suburban district town, where there are large projects near main roads in the planning.
According to Nguyen Van Dinh, General Secretary of the Vietnam Real Estate Brokers Association, the nature of information on planning satellite cities or urban expansion planning of Hanoi is not new because it has been shown in the Capital Planning Project to 2025, with a vision to 2030, approved by the Prime Minister.
The recent information is really just an activity to reiterate the plan of the People’s Committee and the People’s Council of Hanoi to focus on speeding up the progress. Before, when there was planning information, the real estate market in areas such as Thach That, Me Linh witnessed a “fever” and increased sharply, but then it “turned off”, dropped and even saw “negative” prices.
What is the solution to prevent “land fever”?
Architect Pham Thanh Tung said that, on the government side, it is necessary to publicize planning information in a transparent and information-oriented way for people.
On the side of the people, it is important to understand that when implementing the planning, it has many steps, such as zoning planning, detailed planning. Then it will be a specific location for a housing project, a park, a road, or a school. So people have to be alert when investing in a place where they don’t know the concrete shape of the city in 10 or 20 years.
Recommendations to investors for solutions so as not to bear the consequences of unclear planning information, Nguyen Van Dinh said that it is necessary to consider specific planning; projects must comply with the law, are approved, with full and clear legal status.
In fact, there is an explosion in prices in some areas when there is information about planning, but most of them are just taking advantage of information to push up the “wave” of the market.
For example, the Hoai Duc area (Hanoi) has a “land fever” when information came to the district, but only a few small residential areas increased prices.
As a state management agency, Nguyen Manh Khoi, Deputy Director of the Housing and Real Estate Market Management Department (Ministry of Construction), said in order to prevent the “land fever”, in March 2021 the Ministry of Construction develop requirements for localities to publicize information on planning and implementation progress of infrastructure development projects, real estate projects, especially large projects and mergers and acquisitions, upgrading administrative units in the locality with transparent information, prevent spreading rumors to push up prices for illegal profiteering.
However, there are still some localities that have not yet implemented or published information in very limited quantities.
Therefore, at the end of October 2021, the Ministry of Construction continued to sign an official letter requesting the provinces and cities directly under the Central Government strengthen the direction of agencies and units under the Ministry of Construction to continue to publish information on construction and urban planning projects.
According to Mr. Nguyen Manh Khoi, before buying houses and land, people should carefully study the planning information and projects, not follow the crowd mentality. To find out about planning information, people can go online to the national planning portal to look up, or they can go to the local government to ask for information related to planning according to regulations.