Land prices are forecast to increase in areas with developed technical and social infrastructure. (Photo: plo.vn) Hanoi (VNS/VNA) - While there are few, if any,signs of the real estate bubble bursting in 2020, the Ministry of Constructionsaid that land prices could increase in some areas.
Those areas included planned special economic zones and newurban areas with developed technical and social infrastructure.
This was a normal market reaction, the ministry said.
Director of the Housing and Real Estate Market ManagementDepartment Nguyen Trong Ninh said that hot areas for land would be in majorcities like Hanoi and Ho Chi Minh City.
Some real estate experts, however, said that land prices weretoo high in Vietnam.
In some provinces and cities, land prices were inflated atrates much higher than the pace of economic and infrastructure development,according to the Vietnam Association of Real Estate Brokers.
The association said that land would remain the top choicefor real estate investors in emerging localities.
However, land prices were being inflated, leading toadjustments in taxes and higher compensation for site clearance.
This would negatively affect the market, the associationsaid, pointing out that high land prices would lead to a fall in investment inurban development, and investors would leave the market, which would erodelocal socio-economic development.
Nguyen Van Dinh, the association’s deputy president,predicted that land prices would continue to rise, but the increase would notbe significant this year.
General director of Phu Vinh Group Phan Cong Chanh said thatprices were now at their highest levels due to the impacts of land fever in2016-2018.
He said there were also concerns that land prices were toohigh compared to their real value, adding that it would be a difficult periodfor buyers and investors.
In some areas, land prices had reached fever point and themarket could reverse the trend at any time, making it risky for investors, hesaid.
In the short term, land prices might experience fluctuations,he said. Still, over a long period, it would be on an upward trend, Chanhadded.
Vietnam Report recently forecast that in the short-term,Vietnam’s real estate market would experience price fluctuations in order toset up new levels.
In the next few years, the market would undergo apurification process which would put weaker businesses out of the game topromote more sustainable market development, the company said.
The report revealed that real estate prices had risen by upto 200 percent in some areas, compared to annual economic growth rate of aroundseven percent, and a 7-8 percent bump in income per capita.
The Housing and Real Estate Market Management Department saidthe management of land transactions had been tightened, especially after thecase of Alibaba Real Estate Joint Stock Company’s fraudulent sales of housesand plots in southern provinces to appropriate trillions of VND.
The department said that investors now were more cautious,forecasting that land transactions and supply would decline significantly thisyear./.
Those areas included planned special economic zones and newurban areas with developed technical and social infrastructure.
This was a normal market reaction, the ministry said.
Director of the Housing and Real Estate Market ManagementDepartment Nguyen Trong Ninh said that hot areas for land would be in majorcities like Hanoi and Ho Chi Minh City.
Some real estate experts, however, said that land prices weretoo high in Vietnam.
In some provinces and cities, land prices were inflated atrates much higher than the pace of economic and infrastructure development,according to the Vietnam Association of Real Estate Brokers.
The association said that land would remain the top choicefor real estate investors in emerging localities.
However, land prices were being inflated, leading toadjustments in taxes and higher compensation for site clearance.
This would negatively affect the market, the associationsaid, pointing out that high land prices would lead to a fall in investment inurban development, and investors would leave the market, which would erodelocal socio-economic development.
Nguyen Van Dinh, the association’s deputy president,predicted that land prices would continue to rise, but the increase would notbe significant this year.
General director of Phu Vinh Group Phan Cong Chanh said thatprices were now at their highest levels due to the impacts of land fever in2016-2018.
He said there were also concerns that land prices were toohigh compared to their real value, adding that it would be a difficult periodfor buyers and investors.
In some areas, land prices had reached fever point and themarket could reverse the trend at any time, making it risky for investors, hesaid.
In the short term, land prices might experience fluctuations,he said. Still, over a long period, it would be on an upward trend, Chanhadded.
Vietnam Report recently forecast that in the short-term,Vietnam’s real estate market would experience price fluctuations in order toset up new levels.
In the next few years, the market would undergo apurification process which would put weaker businesses out of the game topromote more sustainable market development, the company said.
The report revealed that real estate prices had risen by upto 200 percent in some areas, compared to annual economic growth rate of aroundseven percent, and a 7-8 percent bump in income per capita.
The Housing and Real Estate Market Management Department saidthe management of land transactions had been tightened, especially after thecase of Alibaba Real Estate Joint Stock Company’s fraudulent sales of housesand plots in southern provinces to appropriate trillions of VND.
The department said that investors now were more cautious,forecasting that land transactions and supply would decline significantly thisyear./.
VNA
