Mr. Dang Huu Tai (38 years old, investor living in Hoang Mai district) informed that in 2022, due to having idle money, he spent money to buy 60m2 of land in Thach That district for 1.5 billion VND.
At that time, the landowner committed that the plot of land had clear legal status, Mr. Tai hastily decided to buy, considering this a long-term investment opportunity. However, up to now, the plot of land has not been able to be divided into plots and have a red book due to disputes, and no one has asked to buy them.
Similarly, Ms. Le Thi Nhan (52 years old, real estate investor in Hanoi) informed that in June 2023, she decided to buy 70m2 of land in Thanh Oai district because the homeowner urgently sold it due to financial difficulties.
"When I bought the house, the owner promised to have a red book after 6 months, but until now, I have not seen it. The land plot is really significantly reduced in value when the house cannot be built, it is difficult to find a buyer when selling, everyone is afraid of burying their capital" - Ms. Nhan said.
Mr. Tran Hoang - a long-time real estate broker in Hanoi - recommends that investors need to carefully research the legality, red book, and be careful before spending money to buy land, not investing according to the psychological effect of the crowd.
According to Mr. Tran Hoang, in addition to learning about the legality of the land plot, investors need to pay attention to whether the land is in dispute or transferred or not.
Meanwhile, the decision on the conditions for land division of the People's Committees of some provinces and cities also clearly stipulates that land without disputes can only be divided.
Investigation by Lao Dong reporters shows that the 2023 Law on Real Estate Business stipulates that land use rights cannot be transferred to individuals who build their own houses, self-dividend plots for sale in the areas of wards, districts, cities of special-class urban areas, types I, II and III and are subject to auction 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.
Mr. Dinh Minh Tuan - Director of Property Guru Vietnam - also informed that the new regulations on subdivision and division of plots can have a great impact on the land market in terms of supply, customer base, and selling price.
Mr. Dinh Minh Tuan believes that in the coming time, the land market may see a large number of products with large areas of investors "holding land" with the purpose of dividing plots for sale.
In the long term, tightening the subdivision and sale of land will help the market develop in a transparent and sustainable direction, prevent speculation, "inflate" virtual prices, and limit waste of land and resources.
Many real estate experts believe that investors who want to buy land in Hanoi at this time need to carefully study the legality, red book, utilities, and should compare prices with neighboring areas to avoid the risk of burying capital later.
