Holding agricultural real estate is like sitting on a fire
At the end of 2022, Ms. Nguyen Thi Ly (living in District 3, Ho Chi Minh City) and a friend bought an agricultural land area of more than 5,000 square meters. This agricultural land located in Tan Kien commune, Binh Chanh district has 700m2 of residential land with a purchase price of 55 billion VND.
Ms. Ly and her friend bought together, planning that after buying this land, they would go through the procedures to convert it to residential land and split it into many small lots with an area of about 50m2/lot to sell for profit. After completing the purchase, the real estate market is currently "frozen", so Ms. Ly has not yet gone through the procedures to convert to residential land and separate the plot.
Recently, when there was news that the land price list in Ho Chi Minh City would be adjusted to increase from 5 times to 50 times, Ms. Ly quickly contacted many brokers to urgently sell the above land plot for 50 billion VND, accepting a loss of 5 billion VND. copper to hope to sell out soon.
"The newly announced draft land price list is expected to increase in suburban areas by 15 - 50 times. Land in Binh Chanh district has also increased many times, the land I bought is on the expected route of land price increase. 30 times. Since receiving the information that this land price list was expected to increase, I have been sitting on fire, because if I go through the procedure to convert to residential land, the amount of money I have to pay is up to tens of billions of dong. I need to sell this land urgently and accept a loss of many billions of dong but I still can't sell it" - Ms. Ly said.
Take advantage of selling agricultural real estate
Mr. Nguyen Van Duc (living in Hoc Mon district, Ho Chi Minh City) is a broker specializing in selling agricultural land and took us (in the role of land buyers) to see many agricultural lands that were said to be in urgent need of sale to get rid of goods.
The first land we looked at had an area of more than 4,000 square meters in Tan Xuan commune, Hoc Mon district, with a large road frontage running along the river bank, with a width of 80 meters and a length of more than 60 meters, priced at 52 billion VND.
"This price has been reduced by 3 billion VND compared to the previous asking price. Now if you are willing to buy, the landlord will reduce it further in the hope of getting rid of the goods soon. Not only this land, but other agricultural lands as well." All in my shopping cart are deeply discounted, because the landowners want to sell quickly. Since the news that Ho Chi Minh City will increase the land price list to be closer to the market price, many agricultural land owners are offering to sell at low prices. at a loss compared to the purchase price but very few customers asked to buy it" - Mr. Duc said.
The Land Law 2024 (effective from August 1, 2024) allows localities to apply the old land price list until December 31, 2025. After that, localities will apply the new land price list from January 1, 2026. The new price list will not be controlled by the land price framework as before and will force construction to approach market prices.
While localities still apply the old price list, Ho Chi Minh City soon proposed to apply an adjusted land price list that increased very high compared to the old land price list, the increase in many places was from 10 to 30 times, in some places it increased by 50 times. time.
Faced with this proposed information, not only investors but also households with agricultural land wishing to convert to residential land to build houses are also "impatient", because of the amount of money to convert to residential land. If according to the expected land price list, it will exceed the paying ability of many households.
