According to Lao Dong reporters in early January 2025, the prices of many plots of land in Van Canh, An Thuong, Di Trach, Kim Chung, and La Phu communes (Hoai Duc district) have continuously increased in recent times.
For example, some plots of land with an area of about 50-60m2 in Van Canh commune, at the beginning of 2024, were only priced at 70-80 million VND/m2, but have now increased to 90-135 million VND/m2.
Business land, two-car road in Kim Chung commune, price increased from 83-95 million VND/m2 to 96-115 million VND/m2.
Land positions in villages, wide alleys, and car-passing roads in An Khanh commune have also increased in price from 75-80 million VND/m2 to 85-110 million VND/m2.
Talking to Lao Dong, Mr. Tran Van Minh (real estate broker in Hoai Duc district) said that in fact, since the beginning of 2024, many investors have come to communes in Hoai Duc district to buy divided land plots, especially plots of land with moderate areas of 50-90m2.
Notably, the recent regulation restricting subdivision has also caused the price of already subdivided land to increase.
According to Lao Dong reporters, the 2023 Law on Real Estate Business stipulates that land use rights cannot be transferred to individuals who build houses themselves, divide plots of land into plots for sale in wards, districts, and cities of special, type I, II, and III urban areas, and are subject to auctions of land use rights to invest in housing construction projects according to the provisions of the Land Law.
For the remaining areas, the Provincial People's Committee will base on local conditions to determine the areas where project investors are allowed to transfer land use rights with technical infrastructure to individuals to build their own houses.
Regarding the regulation prohibiting the subdivision and sale of land, many real estate experts believe that in the next year or so, the land market will have many strong fluctuations. The tightening of subdivision will make the supply scarce and land prices may be pushed up.
Mr. Dinh Minh Tuan - Director of Batdongsan.com.vn - also commented that the ban on land subdivision and sale according to the new regulations can reduce the rampant subdivision, the supply to the market will also shrink, helping to reduce the waste of land resources.
After the regulation is implemented, there may appear a large number of large-area land products for sale at discounted prices from investors who have "held land" with the purpose of dividing and subdividing the plots for profit.
On the contrary, the prices of subdivided land plots with certificates in localities where subdivision is prohibited will be pushed up and there is a possibility of a wave of "running" to subdivide and split plots before the law officially takes effect.
Mr. Dinh Minh Tuan said that the ban on land subdivision and sale in 105 cities and towns will reduce purchasing power in these markets, but land in class I cities will attract stronger cash flow. Investors who realize that in times of high risk, will wait for issues related to land subdivision to stabilize before returning to these areas.
