According to Lao Dong reporters, the segment of subdivided land with full legal documents priced under 50 million VND/m2 in suburban districts of Hanoi has recently been especially sought after by investors.
Mr. Nguyen Van Nam (a long-time real estate investor in Hanoi) explained that suburban land plots with selling prices under 50 million VND/m2 and with full legal documents are attracting attention because of their suitable selling prices and high potential for price increases.
According to Mr. Nam, 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, many investors tend to move to the outskirts to look for small plots of land with clear legal status for less than 50 million VND/m2, waiting for prices to increase over time.
The 2023 Law on Real Estate Business, effective from August 1, 2024, stipulates that 105 cities and towns nationwide 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.
According to many analyses, tightening land subdivision and sale from August 1, 2024 will help prevent widespread land subdivision and sale, but the forecasted decrease in land supply will likely push land prices up.
Dr. Nguyen Van Dinh - Vice President of the Vietnam Real Estate Association - commented that the new regulation on tightening land division and sale will be like a "filter", helping to eliminate investors who only ask for land for projects and then divide and sell land, which does not bring economic efficiency to the country. There are even projects that divide and sell land and then abandon it.
Experts emphasized that the tightening of land subdivision and sale in the new law has been strictly regulated by investors. However, land subdivision and "price inflation" activities based on infrastructure still need to be regulated more strictly. 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 "virtual price inflation" of land.
Many real estate experts say that the price of subdivided land with full legal documents is recovering and growing strongly in the context of a decrease in land supply due to "tightening" regulations on subdivision and sale of land.
In particular, land plots worth less than VND50 million/m2 in cities with developed infrastructure or development plans are sought after.
