Land of Dong Nai, Long An unexpectedly doubled the price

20/06/2017   Viewed: 860
Land prices in Bien Hoa, Long Thanh, Duc Hoa in Dong Nai, Long An bordering HCM City escalated locally, rising 1.5-2 times in the last 8-12 months.

Before Ho Chi Minh City earthquake fever broke out in the district, the People's Committee of Dong Nai province issued a document to consolidate the separation of land plots. As of the second quarter of 2017, the whole province still has more than 5,000 applications for trial separation, awaiting the review and re-issuance of new regulations, according to the Land Registration Office.

The ban on the separation of land seemed to make the land market in the area adjacent to Ho Chi Minh City fall into silence. However, only unfinished sub-projects are affected, while the projects are planning the transaction again exciting and unexpectedly increased prices.
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The sale of a land plot in Dong Nai takes place in the second quarter of 2017. Photo: Vu Le

Over the past month, the project of Long Hung urban area (Bien Hoa city) near the second stage metro linking HCM City with Binh Duong and Dong Nai has sold more than 300 land plots. If the first half of the year has more than 1,000 successful transactions. Land prices in this project are also constantly increasing. Compared with the first phase of the market, the average price of land is about 6-7 million m2, now has risen to 12 million per m2.

Similarly, another project located in Dong Nai province is Richland City, with the area of ​​21.5 hectares being launched at an average initial price of only VND416 million. At present, these land plots of this project are traded for nearly 600 million dong each. The increase in the secondary market is nearly 200 million VND per product.

Meanwhile, land prices of some projects in Long An are located adjacent to Ho Chi Minh City also escalated. Neighboring Saigon border through Cu Chi district, Hoc Mon, Cat Tuong Phu Sinh project in Duc Hoa, Long An has a relatively large scale (107ha) recorded doubled in price after 11 months open sale.

In August, the price of this project is about 3 million dong per square meter, some nice price is 4.2 million dong per square meter. So far, the land here has set up new price ground. The lowest on the primary market (the seller sells) 6-8 million m2 per square meter, doubling in less than a year. Some of the land is located overlooking the lake, central park, the limited number has jumped to over 12 million VND per 2, 3 times more than the first open sale.

With a modest price increase, the Saigon Village project is located in Long An near HCM City via Le Van Luong street, Nha Be district, which was launched last year with the price of VND6 million per square meter. By the second quarter of 2016 investors adjusted the price to 7 million per m2. On the secondary market, investors buying and selling are trading this project at the price of VND7.5 million per m2. The margin for this project is 15-20% after one year.

Senior Consultant Global Business Consulting Company (GIBC), Huynh Phuoc Nghia confirmed: "The price of land in some locations in the neighboring province of Sai Gon is in escalation. newspaper". He said that except for Binh Duong province, there was not much fluctuation; some areas in Dong Nai and Long An provinces were feverish and the prices were quite strong in the last 6-12 months.

Mr Nghia remarked that the phenomenon of double or even triple rising prices in some bordering provinces was one that occurred during the earthquake in 2006-2007 ten years ago. Status of land in some projects in Dong Nai, Long An increase as the current price signs are subject to the impact of land fever in Ho Chi Minh City in the first half of 2017 or earlier. He also does not exclude the separation of new records in Dong Nai may also cause the investment needs to focus on the project has been well planned.

Other factors affecting the price of land in the province, according to Mr. Nghia, depends on the attractiveness of the infrastructure. The greater the connectivity between adjacent boroughs and urban areas, the greater the margin. Over the past 1-2 years, information on Ho Chi Minh City's infrastructure connections to neighboring provinces promises to be good and has become a strong attraction for investors and speculators.

Especially in the past 24 months, the accumulation of assets through the purchase of land plots has shown a higher efficiency than other financial investment channels, which has blown the fire into the real estate investment channel. However, GIBC advises investors to be cautious about the rapid increase in land prices.

According to Mr. Nghia, the price increase in the range of 15-20% per year is considered normal for the land plot, which is also a popular investment index, quite safe. But doubles, even triple a year, consider many aspects.

Investors can set their own "steel discipline" when buying down land adjacent to HCM City by field surveys, consultations with experts in the industry. Most important is to find solutions to a series of questions.

That is: the new price level is reasonable; Which foundation promotes land prices escalate; Comparing the land prices in neighboring provinces to the outskirts of Sai Gon; How the market welcomes the price increase; Capital flows are strong enough to sustain long-term investment ... "Investors should only go down the money when finding the answer satisfactory, relieve their doubts," Nghia advised.

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