The Hanoi People's Committee has just issued Decision No. 61 regulating important contents related to land management and use in the city.
One of the notable points of this decision is the conditions and minimum area for land division and consolidation.
Regarding the separation of residential land plots, in wards and towns, the area outside traffic routes, technical infrastructure works, public spaces, the land plot after separation must not be less than 50m2, the length must be over 4m and the width adjacent to traffic routes must be 4m or more.
For communes in the plains, the minimum area after land division is 80m2, for communes in the midlands it is 100m2, and for communes in the mountainous areas it is at least 150m2... This will be applied from October 7, 2024.
Currently, land division in Hanoi is applied according to Decision No. 20/2017. Accordingly, the land plot after division must have a minimum area of 30m2 for wards and towns and not less than 50% of the new land allocation limit (minimum) for the remaining areas.
Economist, Associate Professor, Dr. Dinh Trong Thinh said that raising the minimum area for land subdivision in wards and towns will create a mechanism to prevent widespread land subdivision, disrupting urban planning in central areas.
From the perspective of the people, Ms. Nguyen Thi Hong Anh (in Thanh Xuan district, Hanoi) shared that increasing the area of land division as currently regulated also creates some pressure for home buyers.
“With a 30m2 house, if the price is only from 80 to 100 million VND/m2, home buyers only need to spend about 3 billion VND to be able to buy a house. But if the minimum plot of land is 50m2, with the same price, people need about 5 billion VND to be able to hold the key in their hands, which is a problem,” Ms. Hong Anh confided.
According to Ms. Hong Anh, the difference in price is too big, making it difficult for many low-income people to achieve. Thus, the opportunity to buy a house for many people will also be closed.
The new regulations may also cause land and housing prices to continue to increase due to tighter supply. Mr. Pham Duc Toan - CEO of EZ Property - said that plots of land measuring 30-40 m2 are a popular segment for many people because they are affordable and can be built with multiple floors to increase the usable area.
Recently, it is not uncommon for investors to invest in buying residential plots of land, with an area of 90-120 m2, then divide the plots into many small plots and sell them, earning large profits.
However, when the minimum area for subdivision is increased, they will have to spend a lot of effort and capital to buy a large enough plot of land, which will lead to higher prices for the plots of land after being divided and subdivided.
Meanwhile, some experts said that according to the old regulations, the area for land division in the inner city is 30 square meters. Currently, all eligible land plots have been divided. Therefore, the new regulations on land division and consolidation will not affect the price and market too much.
"For example, in the past, there were many pre-built houses of about 30 square meters, making them more accessible to many people. When the area of land is increased, the value of the house will increase. The city needs to have a strategy for developing social housing before applying new regulations so that people can access housing," the expert commented.
