For more than a week now, Mr. Le Dung and his wife (from Nam Dinh, living in Tan Hiep commune, Hoc Mon district) have been thinking about whether they should spend 950 million VND to buy a 75m2 agricultural plot of land to build a house.
"This plot of land is next to the boarding house I am renting. Previously, the landowner offered it for sale for 1.4 billion VND. At that time, my husband and I also wanted to buy it but the amount was beyond our ability. However, in mid-October, the landowner posted a sign saying he needed to sell it urgently for 1 billion VND. When I contacted the owner, he said that if I bought it immediately, I would reduce the price by 50 million VND, leaving me with 950 million VND.
With this amount of money, my wife and I can borrow a little more to be able to buy it. But I am worried that the cost to convert the land use purpose to residential according to the new land price list issued by the city will cost several hundred million more" - Mr. Dung shared.
Ms. Pham Thi Ly (District 7, Ho Chi Minh City) is a real estate investor, considering buying a piece of agricultural land in Binh Chanh district, when this land is discounted by up to 3 billion VND compared to the previous selling price.
"In 2023, I knew that this land was offered for sale for more than 15 billion VND. At that time, I intended to buy it for investment but because I did not have enough money to raise. Currently, this land is being offered by the landowner for 12 billion VND and is still being negotiated, the price has decreased by more than 3 billion VND compared to before. Seeing the price drop so much, I wanted to buy it for investment but thinking about the high conversion tax to residential land, I could spend billions of VND more, so I did not dare to spend money" - Ms. Ly said.
Mr. Pham Van Dong - director of a real estate brokerage in District 12 - said that currently many agricultural plots in Binh Chanh, Hoc Mon, Cu Chi districts... are being offered at deeply discounted prices. However, those who want to buy to build houses, or even investors, must consider carefully before spending money.
"Many agricultural plots consigned to my company have been accepted by the landowners for a 20% discount compared to the previous selling price. With plots of land with deeply discounted prices, suitable for many people's budgets, especially salaried workers, this is the right time to buy.
However, buyers need to contact the authorities to see how much the total tax must be paid after converting the purpose to residential land, then add it to the current selling price to decide whether to spend money to buy or not. Investors also need to be very careful when buying agricultural land for investment at this time. Because when the tax rate for converting to residential land increases, the selling price will also increase, so low liquidity and the risk of difficulty in recovering capital are possible" - Mr. Dong said.
