Rural land “deflated”, investors continuously reduce prices to “escape goods”

The price drop is still low

After more than 1 month of selling, Mr. Nguyen Quoc Khanh has twice lowered the price of the land plot in Giao Phong commune, Giao Thuy district (Nam Dinh) but no buyers have yet. At the time he bought this land, it also had to go through the hands of another investor.

“In October of last year, I bought a land plot of more than 400 m2 for VND 1.8 billion. Around March this year, the regional market was quite active, many brokers promised to sell this land for 2.1 billion dong. Considering it forever, I’ve been selling it since the beginning of April, but I still can’t sell it,” Mr. Khanh shared.

According to the above landowner, the information for sale has very little interaction, some people call to ask, but after talking about the price, there is no further response. “I had to reduce the price twice since I put it for sale, from 2.1 billion to 2 billion and now it’s 1.9 billion. If I have to go back to 1.8 billion as at the time of purchase, I will lose money and costs. related and bank interest over the past 6 months”, Mr. Khanh said.

Similarly, the investment group of Mr. Nguyen Van Duc (in Hanoi) is also stuck in Thanh Hoa after buying land in Tho Xuan district. The original purpose of the group was to buy a plot of land of more than 3,000 m2 to separate the plot, but due to the long processing time, it was sold to the market unexpectedly.

“The time after the Lunar New Year (around March) the market in the districts of Thanh Hoa is active. However, our land cannot be sold yet because the related procedures are incomplete, leading to waste of the facility. association”, Mr. Duc shared.

Although he thinks the direction of dividing the plot of land into small lots to suit the investment capital of many people, Duc admits that the current market is not as big as before. The sale of land plots priced from only 350 million VND to 400 million VND also struggled.

Facing the pressure of bank interest to pay monthly, Mr. Duc’s investment team is gradually calculating a discount plan to get rid of the goods. “The whole group is calculating to make a decision to reduce the price of the remaining land lots because the market is showing signs of slowing down. It will be difficult to invest with high profits at this time, the group will prioritize the direction of capital preservation.” Duc said.

A local bubble has appeared

Sharing with Dan Tri, Mr. Nguyen Van Quang – a longtime broker in Nam Dinh province – said that the rural land market in the districts of this province has shown signs of slowing down since the beginning of April. . The number of investors wishing to buy land is also much less than in the past.

“Currently, the price of land in the central districts has been much higher than the real value. For example, a land plot of 200 m2 located in the alley of Giao Phong commune (Giao Thuy) has been pushed up to 1 billion VND to 1 billion VND. 1.5 billion dong, especially with lots of nearly 2 billion dong. With such a high price, it’s difficult to sell, not to mention investors who calculate high profits, it’s even harder,” said Quang.

According to Mr. Quang, many auctioned land lots in Giao Thuy and Hai Hau districts (Nam Dinh) are also having a hard time finding buyers. The landowner actively offered a lower price than the previous sale, but it was still empty.

Regarding the reason that the market is somewhat quiet, many brokers and investors believe that the control of the Covid-19 epidemic has become more and more effective, and production and business channels have gradually recovered. Cash flow has more investment channels than during complicated epidemics.

In addition, the difficult signals from the stock market, corporate bonds, along with the strengthening of project inspection, “tightening” of real estate transfer tax, causing the real estate market to slow down may fall. into a difficult situation. And as a rule of thumb, when the market is in trouble and investors lack capital, real estate prices are forced to decrease. However, in the short term, real estate prices have not decreased because investors’ expectations are still high and they still have a good ability to bear debt.

Commenting on the real estate market in recent years, many real estate experts said that, from 2014 to now, real estate prices have continuously shown signs of heating and have not shown any signs of stopping. However, experts say that investors need to have a very careful view of the market and real estate prices because there will come a time when the market slows down, and many investors will have to cut losses in real estate. in the near future.

According to Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association (HoREA), currently, there are many areas where new prices are set very high due to speculative factors, causing great harm to healthy development. stability and sustainability of the real estate market, making home ownership dreams of middle- and low-income people in urban areas increasingly remote.

At the same time, HoREA Chairman said that the biggest contradiction in the real estate market today is the mismatch between supply and demand. Because the market is very short of supply of affordable housing for low-income people, but there is an excess of supply of high-end housing and resort apartments.

Commenting on the volatility of the market in the coming time, Mr. Le Hoang Chau said that when the capital flowing into real estate shrinks, businesses and real estate investors will have to focus on projects. If it is feasible, there is no more spreading investment, the real estate market will definitely cool down.

According to Mr. Nguyen Van Dinh – Chairman of the Vietnam Real Estate Brokers Association (VARS), in the first quarter, the situation of “land fever” was local in some localities with information on infrastructure planning such as airports, residential areas, etc. industry, roads and bridges… This phenomenon is being rectified by the authorities, in order to ensure the healthy and efficient development of the market.

According to Mr. Dinh, the real estate market has appeared a local bubble; land prices in different areas increase according to projects; house prices increased but liquidity did not increase commensurately.

According to Dan Tri