Talking to Lao Dong, Mr. Nguyen Ngoc Hung (a long-time real estate investor in Hanoi) informed that suburban land plots with an area of about 50m2, selling for 2-3 billion VND/plot often attract customers because they have a financial level suitable for people with real housing needs.
According to Mr. Hung, when there are no regulations to tighten the subdivision and sale of land, many investors will tend to buy large plots of land, then divide them into smaller pieces to sell for profit. However, when the 2023 Real Estate Business Law comes into effect, owners will be forced to sell large plots of land at high prices, making it difficult to find customers.
Similarly, Mr. Tran Van Hoa (39 years old, Binh Yen commune, Thach That district) shared that after the regulation on tightening land subdivision and sale was implemented, large plots of land here are very difficult to find buyers because the selling price is up to tens of billions of VND/plot.
For example, a plot of land in Binh Yen commune, 1,435 square meters wide, is for sale at 14.35 billion VND, equivalent to 10 million VND/square meter. This plot of land has been for sale since the beginning of 2024 but has not yet found a buyer.
Mr. Hoa analyzed that this plot of land is only suitable for those who want to open a homestay or resort with large capital. Meanwhile, many customers tend to buy small plots of land, priced at 2-3 billion VND/plot.
In fact, the 2023 Law on Real Estate Business, which will take effect from August 1, 2024, stipulates that 105 cities and towns across the country will not be allowed to divide land into plots for sale. For the remaining areas, the provincial People's Committee will decide which areas investors can divide into plots and transfer to individuals to build their own houses.
Notably, many real estate experts believe that investors holding large plots of land may be forced to sell at reduced prices because of difficulties in finding customers. The tightening of land subdivision and sale from August 1, 2024 will help prevent widespread land subdivision and sale, but the expected decrease in land supply will likely push up land prices.
Assessing the impact of the 2023 Law on Real Estate Business on the real estate market, Dr. Nguyen Van Dinh - Vice President of the Vietnam Real Estate Association - commented that the new regulation will be like a "filter", helping to eliminate investors who only ask for land for projects and then divide and sell plots, which does not bring economic efficiency to the country. There are even projects that divide and sell plots and then abandon them.
Experts emphasized that the tightening of land subdivision and sale in the new law has been strictly regulated by investors. However, land division and "price inflation" activities based on infrastructure still need stricter management regulations. In particular, the Decrees guiding the implementation of the 2024 Land Law and the 2023 Real Estate Business Law need to be clear and detailed to eliminate the situation of "inflating" virtual land prices.
