In the context of continuously escalating residential land prices, buying agricultural land for subdivision is becoming a new trend that attracts the attention of many investors as well as those with real needs. With a significantly lower price than residential land, agricultural land brings the opportunity to own cheap real estate. However, along with those attractive prices are potential risks, especially legally, that investors need to consider carefully.
In fact, the agricultural land market is becoming more and more bustling as many suburban areas such as Hanoi, Ho Chi Minh City, and Binh Duong recorded a sharp increase in agricultural land trading. Most agricultural land buyers today aim to separate plots, convert land use to residential land for long-term investment or resell at higher prices.
According to records, the price of agricultural land is only about 1/4, even lower than that of residential land in the same area, which is the reason why many people quickly put money in the hope of great profits.
Ms. Nguyen Thu Huong, an investor from Hanoi, shared: "I just bought a piece of agricultural land of nearly 500m2 in the suburbs for only about 3 million VND/m2, while residential land here is fluctuating from 10-15 million VND/m2. If the plot is separated and converted successfully, the profit will not be small". However, Ms. Huong also shared that this process is not simple because there are many complicated legal procedures that she is not yet aware of.
Sharing the same view, Mr. Tran Van Dung, a long-time investor in Hung Yen, also shared his experience: "I have bought some agricultural plots, but not all cases can be converted to residential land. In fact, changing land use purposes also depends largely on local planning and land use plans. If the land is not allowed to be converted, investors are likely to face the risk of long-term capital burial or even loss if the land is stuck in planning".
The situation of many people buying agricultural land but lacking legal information leads to negative consequences that are no longer rare. Some localities have recently experienced disputes and litigations related to agricultural land division. Many investors are stuck when they have bought land but cannot convert or separate plots as originally planned.
According to Mr. Nguyen Van Hai, a real estate broker with more than 10 years of experience in Hanoi, the situation of investors lacking legal information when buying agricultural land is very common. "Many customers only care about cheap prices and quick profitability, forgetting the most important factor, which is legality. There are cases where sellers commit to ensuring the division of the plot, but after buying, they are stuck with regulations on the minimum area for division or land within the planning area that cannot be converted for use," said Mr. Hai.
Therefore, Mr. Hai recommends that, to avoid falling into the trap of buying cheap but high-risk land, buyers need to carefully research information about local land use planning and plans before paying. Consulting legal experts or professional brokers is extremely necessary. Being cautious from the beginning will help investors minimize risks, ensuring long-term benefits and investment efficiency.
