Taking us to see a land plot with an area of over 15,000 square meters in Binh My commune (Hoc Mon district, Ho Chi Minh City), Mr. Pham Van Dong - Director of Newday Real Estate Company Limited said that these past few days he has been worried about the risk of burying capital in this land plot.
According to Mr. Dong, in 2022 - when the real estate market was frozen, he raised money to buy this land for investment purposes. After the purchase, Mr. Dong planned to convert it to residential land and divide it into plots to sell to recover capital when the real estate market "thaws". If he previously expected the above land to bring profits, he is now disappointed because of the risk of difficulty in recovering capital.
"When the city issued a new land price list, I rushed to convert the land to residential land to avoid paying the new tax rate, but failed because the documents lacked procedures. While I was worried that the new tax rate would cost tens of billions of dong for this land if it was converted to residential land, I received further information that Ho Chi Minh City banned the subdivision and sale of land. When I received this information, I was so worried that I couldn't eat or sleep for the past few days because the amount of money invested in the land was quite large and the possibility of recovery was quite low," said Mr. Dong.
As a real estate investor, Ms. Pham Thi Ly (District 7, Ho Chi Minh City) specializes in buying thousands of square meters of land, then dividing it into plots and selling them for profit. Previously, this investment method was considered "money-making", but now it has become a "debt" and Ms. Ly wants to "get rid" of these types of land as soon as possible.
"Currently, I still have 4 plots of land with a total area of over 10,000 square meters located in Binh Chanh, Hoc Mon and Cu Chi districts. Most of the land is agricultural land or perennial crops. If it is converted to residential land, the tax will be high, while it cannot be divided into plots and sold as before, the risk of loss is very high. Now I want to quickly sell these plots of land at the original purchase price, just hoping to recover the capital, not expecting any profit at this time." - Ms. Ly said.
The general director of a real estate company in Tan Binh District (HCMC) said that from the perspective of a business, the City's issuance of a regulation prohibiting the subdivision and sale of land will be disadvantageous to real estate companies specializing in land trading like his company. However, from the perspective of people buying land products or from the perspective of state management of land, this prohibition will bring positive effects.
"Previously, after purchasing a large plot of land, businesses quickly divided the land into lots and sold the land to make a profit as soon as possible. However, with this new regulation, businesses can hardly do it in a "quick fix" manner, but must invest in complete construction according to regulations. This will increase the investment costs of businesses, but in return, buyers will get a complete product." - General Director of a real estate company in Tan Binh district said.
