Real Estate Brokerage Association explained “land fever” in spite of the law

Minh Hoàng
April 24, 2021
Illustration. Source: Internet

– The Vietnam Real Estate Brokerage Association (Real Estate) said that the real estate market in the first quarter of 2021 in general and the land plot segment in particular had sudden price increases in many localities, creating “land fever waves. “Part of the reason is that the land price bracket was adjusted by the local authorities to increase by 15-20%.
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According to the Vietnam Real Estate Brokerage Association, from the local real estate market, the land is boiling everywhere, the price increases rapidly, an average of 10% after 1 month. Particularly in some places, it increases 2-3 times in just 1-2 months. In many places, people quit business and production to invest in land. Bank deposits are also withdrawn for investment.

– In addition, in many localities, there is a phenomenon of spreading untrue news about project planning and development. Even taking advantage of the opinions of state leaders, creating fake documents to spread news, creating waves … This has a very bad impact on the interests of inexperienced investors.

– In which, the phenomenon of land for sale in accordance with the law such as: forest land, field land, garden … appeared regularly in the market. Many “decoys” regularly gather, gather in these areas, create excitement, release a lot of information without basis, push prices up hour by hour, every day to entice investors to enter. . These are not professional real estate brokers operating at professional and reputable real estate trading floors but are seasonal “storks”, jumping into the market during a fever fever.

– Facing this situation, by the end of the first quarter of 2021, the authorities of some localities have strongly participated in controlling illegal buying and selling activities. At the same time, it is recommended that people be alert to false rumors, creating waves that cause land fever for self-seeking.

– According to the Vietnam Real Estate Brokerage Association, the cause of the above phenomenon is due to the land price bracket adjusted by local authorities to increase by 15-20%.

– Demand for accommodation is still very strong across the market, but the approval of investment in real estate projects, creating a supply source has yet to show positive signals. Therefore, the supply in the market has not improved, is still lacking. Especially affordable housing projects, social housing and land projects.

– The demand for investment and money to be deposited into the land increased sharply, suddenly due to ineffective investment in other economic sectors due to epidemics.

– Bank interest rates fell deeply and short-term investments in stocks and gold were profitable, so many investors quickly took profits and kept them with land …

Source: According to Hai Son /