In early 2022, Ms. Vuong Thi Nga (39 years old, from My Duc district, Hanoi) researched information on groups and social networks and decided to buy a piece of land for 1.5 billion VND.
According to Ms. Nga, the land she bought was in a large plot of land, divided into many small pieces. The entire land is under the name of one person in Thach That district. However, when he put down money to buy, for more than 3 years, the land was still embroiled in a dispute and had not been divided into small books.
"Because I did not research carefully, when I finished buying, I discovered that the plot of land had been in dispute for a long time. According to the law, disputed land will not be divided. When I need money to do business, it is difficult to find buyers for the plot of land for sale" - Ms. Nga said.
Mr. Nguyen Xuan Thang (a long-time land investor in Hanoi) informed that to minimize risks in investment, buyers need to carefully understand the legality of the plot of land they have decided to buy.
According to the investor, if you buy a plot of subdivided land without a license, the plot cannot be sold and the house cannot be completed. Although the price is cheap, buyers should not risk investing in surfing, should invest "for sure", choose to buy land with a separate plot, with a red book available to ensure future benefits.
According to Lao Dong reporter's research, 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.
The ban on land subdivision and sale will be applied in 105 cities and towns, which will reduce purchasing power in these markets. Investors who see that at a time of high risk, will wait for problems related to land division to stabilize before returning to these areas.
Mr. Nguyen Van Dinh - Chairman of the Vietnam Real Estate Brokers Association - commented that land plots have been divided, completed legal documents in areas with developed infrastructure and high potential are still the segment that many people are willing to spend money on.
However, Mr. Dinh also recommended that investors need to carefully research the legality and red book, be careful before spending money to buy, and not invest according to the crowd psych effect. If not carefully considered, many people may have difficulty with liquidity and risks later.
