Pausing subdivision, separating agricultural land is not sure to cut the ‘fever’ and ‘cool down’ land prices

The rampant subdivision of plots for sale has created a ‘fever’ for land in the suburbs of Hanoi in the past 2 years, causing turmoil in the market. The situation of land consolidation, leveling, plot splitting, and rampant selling prices also took place in many localities, causing some provinces such as Binh Phuoc, Lam Dong, Khanh Hoa … to have “orders” to suspend the separation. agricultural land

Hanoi was strong when the Department of Natural Resources and Environment asked the People’s Committees of districts, towns to suspend the receipt and handling of administrative procedures related to the division and separation of agricultural, residential and commercial land. agricultural land in the same parcel of land, non-agricultural land and not residential land.

At the same time, this Department also proposed the districts, towns and cities to inspect, review and report on the division of plots, division of land parcels, leveling of land for construction of road infrastructure in the area. the period from January 1, 2017 to January 31, 2022 for a land plot with an area larger than 500m2.

How will these temporary ‘orders’ of some localities affect the real estate market and land prices now and in the future?

According to experts, if you only pause because the locality sees the division of plots and parcels too quickly, pause to stabilize, it is not sure to cool down, it will only ‘stop’ for a while…

Share with PV Infonet, Mr. Nguyen Van Dinh, Vice Chairman of Vietnam Real Estate Association, Chairman of Vietnam Real Estate Brokers Association, assessed that the division of plots and parcels is currently circumventing the law to create products for investors. Retailers want to invest in land. This type of land is only for speculation, hoarding and buying and selling of land, which is essentially a financial business on the basis of land, not an investment for long-term land use.

“The collection of land, then dividing the plots and subdivisions of plots in Hanoi in the past few years has been very ‘busy’, especially in Hoa Lac, Son Tay, Xuan Mai… creating a project of ‘circumvention of the law’, we I call it ‘piracy’. If it is a “piracy” product, it should not be on the market.

The localities that tolerate this activity also create consequences for the market, land keeps being “push” in price, using it to do business, buy and sell again and make a profit, without any purpose. exploiting anything on the land, creating a “land fever”, with many potential risks for both planning and economic development of the locality and also for those who buy and sell around that land when they are all people who just want to create “Wave”, “ride the wave” and then jump out”, Mr. Dinh said.

At the same time, according to the Vice Chairman of the Vietnam Real Estate Association, the division of agricultural land plots and parcels causes consequences such as the increase in local land prices, the retention of that type of land, which makes it difficult for investment activities to be carried out. Real estate projects that the locality wants to develop according to the planning is difficult when the land compensation is heavy and cannot be done. The division of plots, plots, buying and selling for profit, and land holding does not create economic development for that area, but causes chaos in the real estate market, houses and houses, and land buyers. how much money goes into it.

“Pausing subdivision of plots and parcels is right, but only temporarily in order to limit the phenomenon; This move is just like ‘kidnapping the disc’. It is necessary to deal strongly with taxes to thoroughly restrain them; must impose heavy taxes on buying land and keeping it there. When buying and selling and only seeing a loss, people will stop,” Dinh said.

Will the pause in the separation of agricultural land plots have an impact on the price of land for subdivision in real estate projects? Mr. Dinh said, most of the land in the legal projects is high, there is no low-priced project, so there is no fear that the pause in the separation of agricultural land will increase the price of land in the project because the price of the land in the project increases. increase will be slower liquidity.

Also sharing with PV Infonet, economic expert Dinh The Hien said that in recent years, people have concluded that investing in agricultural land, especially in remote areas, is super profitable. Agricultural land is gradually converted to residential land, benefiting from infrastructure; Usually, when investing in agricultural land, people buy several thousand square meters or more, so when the price increases, the value is very large. From that fact, many people rush to invest in agricultural land.

“In recent years, many localities have not been strict and relaxed, each place has implemented a type of distorting agricultural land planning, land prices have increased due to the division of plots, distorting policies on development of residential and agricultural land. village. If done strictly, it will definitely help cool down the problem of investing in agricultural land, help manage agricultural land appropriately, and avoid the chaotic real estate market, planning disruption,” said Mr. Hien.

However, Mr. Hien said that the pause is difficult to understand, only temporarily preventing “land fever” for a while because after allowing it to stop, it will recover later, and will still be worried about the instability of the market. school.

“If the temporary pause is known to some groups, it will make the information very large, those who have that information will buy more land.

The temporary pause in the division of plots and subdivisions in order to continue to issue clearer legal policies will reduce land prices; But if you only pause because the locality sees the division of plots and parcels too quickly, pausing to stabilize, it is not sure to cool down the land price, it will only temporarily ‘stop’ for a while,” said expert Dinh The. Show rating.

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