Real estate prices increase with infrastructure
Ring Road 2.5 is one of the important infrastructure routes, playing a connecting role between Ring Road 2 and Ring Road 3, contributing to sharing the pressure on the inner-city traffic system that is increasingly overloaded.
According to the plan, the road will start at Ciputra urban area, passing through Phu Thuong, Xuan Dinh, Nghia Do, Cau Giay, Yen Hoa, Thanh Xuan, Khuong Dinh, Dinh Cong, Hoang Mai, Vinh Hung, Linh Nam areas before ending at Ring Road 3 intersection near Thanh Tri bridge. When completed, this road is expected to strengthen connectivity between areas and expand urban development space. The clear impact of this road is the fluctuation in real estate value. Recorded in the Nguyen Trai - Dam Hong area, many house sale signs appeared. Contacting a homeowner, a house with an area of 42m2, with a land use right certificate, is offered for sale at 600 million VND/m2 (equivalent to about 25.2 billion VND/unit).
Also in this area, a broker named Son (character name changed) is advertising for sale a "super distorted" house with an area of 44m22. The house has a split shape, not square due to planning impacts. However, the house is still offered for sale at a price of 450 million VND/m2 (equivalent to 19.8 billion VND/unit). Real estate prices in this area have increased from 10-20% in just a few months and nearly 30% in a year. Neighboring areas are being advertised for sale at about 400-500 million VND/m2, some locations on riverside roads may be over 600 million VND/m2.
Regarding the location, the broker said that the land has an advantage when it is located near major roads such as Ring Road 2.5 and Nguyen Trai road, and also near the metro line, belonging to an area where infrastructure is being developed. The seller also said that if kept, it can be renovated for rent, because this area after Ring Road 2.5 is completed will have development potential.
Commenting on this issue, Mr. Pham Duc Toan - General Director of EZ Vietnam Real Estate Investment and Development JSC - said that the general rule is that wherever the infrastructure goes, the value of real estate increases, thanks to improved traffic, exploitation capacity and people's expectations.
However, he believes that in the current context, consumer behavior and business models have changed sharply, especially the trend of online business development, causing the demand for renting premises to decrease. A house located on a street but with limited traffic or not suitable for business may not create the expected investment efficiency. According to him, the liquidity of these products is also not easy, while investors currently have many other more suitable options.
Mobilizing to dismantle a series of "super-thin, super-skewed" houses
After completing site clearance for the Ring Road 2.5 project section from Nguyen Trai to Dam Hong, Khuong Dinh Ward People's Committee recorded 76 cases of houses and land remaining with an area of less than 15m2. These are cases arising after site clearance, potentially affecting urban aesthetics, structural safety of works and construction order if not handled promptly according to regulations.
Khuong Dinh Ward People's Committee has strengthened the inspection of the current situation, promoted propaganda, mobilization and guidance for people to implement relevant regulations. Thanks to the consensus of households, up to now, 39 cases have voluntarily dismantled the entire project. For the remaining 37 cases, the locality is continuing to urge and guide the implementation of cutting and dismantling of the affected area in accordance with current regulations.
Currently, current law also has specific regulations on handling cases of "super-thin, super-skewed" houses. According to Clause 7, Article 91 of the 2024 Land Law, when the State recovers land and the remaining area of the recovered land plot is smaller than the minimum area according to the regulations of the Provincial People's Committee, if the land user agrees, the competent State agency will decide to recover the remaining area and implement compensation and support according to regulations. In some cases, people do not necessarily have to continue to keep the remaining area after site clearance if they meet the conditions according to regulations.
