New regulations on subdivision and subdivision of land
Recently, the Hanoi People's Committee is soliciting comments and completing the draft Regulations on conditions for land division and consolidation and minimum area and size for land division for each type of land in Hanoi.
According to experts, 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.
However, raising the minimum area for land subdivision in wards and towns may also create great pressure for people in need of housing and land, especially in the context of real estate prices in Hanoi that have increased sharply and remained high in recent times. At the same time, it may also cause land and housing prices to continue to increase due to tighter supply.
Master, Lawyer Pham Thanh Tuan (Hanoi Bar Association) said that currently, land division is only assessed from the perspective of technical conditions without considering the origin of the land plot and the land user.
"For example, a plot of land in Hoan Kiem district has an area of 90 square meters. An individual buys a large plot and then divides it into 3 small plots if it has a 3 meter frontage and the total area of each plot is 30 square meters or more.
From here, 3 tube houses with one facade and three sides surrounded will be formed, not ensuring fire safety. Individuals will sell them to 3 different people. This is the cause of the situation that we still call the "tube house era" which disrupts urban planning.
On the contrary, if the parents still have 3 children and want to split the land into 3 plots, each child will have a piece of 30m2. With the new regulation of minimum area of 50m2/plot, it cannot be split. If considered from the perspective of urban management, this may be reasonable because it helps avoid overloading of technical infrastructure and improves urban aesthetics. However, from the perspective of economy and social life, there are many aspects to consider" - Lawyer Pham Thanh Tuan said.
Be careful before putting down money
Regarding the land market, Mr. Nguyen Quoc Anh - Deputy General Director of PropertyGuru Vietnam predicts that from the second quarter of 2025 onwards, land will begin to enter the main trend of recovery. The current waves are only local in some areas.
According to this expert, there are 3 main factors that greatly affect the land market, including the regional economy (even more macro, the national economy), infrastructure planning and population, and connectivity with other localities.
After a difficult market period, the general psychology of real estate buyers and investors will be more cautious than before. Therefore, he recommends that buyers and investors should research the market carefully and learn about price fluctuations through objective sources of information.
Ms. Trang Bui - General Director of Cushman & Wakefield - commented that the land segment is often very sensitive to market information, planning of new traffic routes, large real estate projects, planning of industrial parks. When this information appears, the land market in the suburbs of Hanoi is immediately inflated, creating a virtual fever.
From that reality, this expert noted that investors in land plots in the suburbs of Hanoi need to be extremely careful about the risk of burying capital when investing in products during price fevers, lacking real use values. Unlike the previous period, land price fever often exploded in many provinces and cities across the country. At present, the land plot wave only occurs within a narrow range.
