Investors are afraid of “lack” of land

Recently, the Hanoi Department of Natural Resources and Environment has issued a document to promote the State management in implementing the procedures for separating and consolidating land plots. Notably, it is the Department of Natural Resources and Environment that proposes the People’s Committees of districts, towns to inspect, review and report on the division of plots, division of land plots, leveling of land for infrastructure construction from January 1, 2020. 2017 to the end of January 31, 2022 for land plots with an area larger than 500 m2 (including: agricultural land; land plot with residential land and agricultural land in the same land parcel), which have been granted by district-level People’s Committees Certificate of land use right, permitting change of land use purpose.

This move of this unit comes from the chaotic state of distribution that the mass media reflects. In fact, the situation of buying large plots of land and dividing it into small lots has been going on for many years. In particular, along with the fever of suburban land, the trend of “leaving the city to the forest” to relax and avoid the epidemic has accelerated the investor’s hunt for agricultural land. Real estate floors or groups of investors contribute capital, buy thousands of square meters of land and divide it into small lots from 60-80 square meters.

Even land for growing perennial crops and agricultural land can be subdivided or converted to use purposes and then divided into plots and sold. This situation occurs strongly in the areas around Hanoi such as Soc Son, Ba Vi, Thach That …

However, the recent document issued by the Hanoi Department of Natural Resources and Environment on the division of lots has made investors worried about the reversal of supply and demand in the market.

Sharing with PV, Mr. Thuan (Cau Giay, Hanoi) said that with the current regulations on separating plots, large land lots are easily forced by investors at low prices. The risk of “lean” may occur because large plots of land come with large finance. According to this investor’s analysis, not all customers are willing to put money into large plots of land due to large financial resources and slow liquidity. This type is only suitable for people who want to run a homestay, resort, or farmstay business. But this customer file is small. Meanwhile, the group of customers who want to buy a small plot of land, finance a few hundred million to 2 billion, is a lot. They want to hold the land, wait for positive information, the price will go up and then exit.

“A land plot of 2000m2-3000m2 in Soc Son, Ba Vi, Thach That … has a price of 4-10 billion VND. If cut into a small plot of about 80m2, of which 30m2 residential land, 50m2 agricultural land, investors Investment is easily accessible and sold to many people because the financial source is only 600-1 billion VND or 2 billion VND for a densely populated area, beautiful roads That’s why large plots of land will be empty and because of regulations In this case, investors who hold a large plot of land and do not have time to separate the books will find it difficult to sell or be forced to sell cheaply,” said Mr. Thuan.

Meanwhile, Mr. Hieu (Nam Tu Liem, Hanoi) currently “holding goods” in Ba Vi commented: If the investor holding a large land lot falls into a difficult liquidity situation, the group of investors will divide After separating the book, you will win big. Due to the high demand to buy small plots of land, the liquidity of this product line is fast. The price of a small plot of land will certainly be pushed up in the near future.”

Mr. Hieu revealed that the profit of buying a large land fund and then dividing it into small parts ranges from 50-100%. This is the reason why many investors “favor” this form.

According to Trieu Vuong

Business and Marketing

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