“Fever” for agricultural land, investors put their money down despite the risks
Agricultural land prices skyrocketed
The time of land fever was when even agricultural land quickly fell into the “wheel” of dizzying price increases. A recent report by batdongsan.com.vn on the Khanh Hoa real estate market, in many districts, has seen a spike in agricultural land prices and transactions.
For example, agricultural land in Ninh Hoa district has been hot since the end of 2021. According to a March 2022 report by Batdongsan.com.vn, interest in Ninh Hoa real estate increased by 77%, the number of posts also increased by 53%. compared to February. In the communes of Ninh Xuan, Ninh Phu, many agricultural lands for sugarcane and acacia cultivation, priced from several hundred million, have been pushed up to billions.
In Dien Khanh, a mountainous district, also recorded the situation of subdivision and sale of agricultural land. As noted by batdongsan.com.vn, information about Vo Nguyen Giap route and road 23-10 connecting with Ho Chi Minh City. Nha Trang has caused communes and wards in the periphery such as Dien Dong, Dien Xuan, Dien Lam, Dien Hoa, and Suoi Tien to experience price fevers between the beginning of 2019 and the end of 2021. Many land lots are 300-400m2. price 3.5 million/2 increased to 4.5 million/m2 after a few days. According to the March 2022 market report of Batdongsan.com.vn, the number of real estate searches in Dien Khanh increased by 60%, the number of listings also increased by 49% compared to February.
According to a survey on Batdongsan.com.vn, garden land with a part of residential property in Suoi Tien, Dien An, Dien Phuoc … is for sale the most with prices ranging from 4-11 million/m2 depending on the location. . Land plots in subdivisions that have been built on roads or near major roads have higher prices.
Not only in Khanh Hoa, but also in many other provinces and cities, agricultural land has suddenly become a “hot commodity”. For example, in Dong Nai, according to the leader of this provincial People’s Committee, many people are willing to pay high prices to buy agricultural land. In remote areas where roads have not yet been invested, the price is 1.5-2 billion VND/ha, in areas with big roads, the price is 5-10 billion VND/ha. Agricultural land areas are planned at a price that can be up to 40-60 billion VND/ha.
According to research, in some areas near Hanoi such as Thach That, Ba Vi, the price of agricultural land has doubled within 1-2 years. The price of agricultural land fluctuates at 3-7 million VND/m2. There is even an area of agricultural land that recorded 30 million VND/m2.
In Hai Duong and Hung Yen provinces, there are also agricultural land trading activities with an average price of 1-3 million VND/m2.
Explaining about the active agricultural land market share, Mr. M. a professional investor from Hanoi analyzed, there are 2 main reasons why investors put down money in this type of business. First, the price of agricultural land is cheap. Because it is cheap, the ability to increase prices will be faster and better. For example, a plot of land priced at 500,000 VND/m2 doubled or tripled to 1.5 million VND/m2 will be easier than a land plot of 50 million VND/m2. Second, because information about infrastructure planning becomes a catalyst to push up agricultural land prices.
Investment in agricultural land may be lost
However, according to professional investors and experts, investing in agricultural land is very risky. Mr. M. said, normally, investors buy agricultural land and expect to convert land use purposes to increase money. But in reality, changing land use purposes is not easy. In addition, if that land area is planned to be converted from agricultural land to residential land, the government will collect and compensate to divide the plot for auction. Thus, investors are easy to lose.
According to lawyer Le Van Hoi, Director of My Way Law Firm, the first risk of buying agricultural land may refer to agricultural land that has not been granted a land use right certificate, which does not guarantee the conditions for the transfer. and receive the transfer of land use rights in accordance with the law. This will create a lot of risks for the transferee in the event of a dispute. Specifically, if there is a dispute, the handwritten transfer contract will not be accepted as a basis for the competent state agency to settle, leading to the case that the transferee may lose the money already paid. out.
In addition, investors cannot or face many difficulties when converting land use purposes. Because currently according to the law, agricultural land that has not been granted a land use right certificate cannot change the land use purpose. Therefore, legally, the investor will not be able to convert the land use purpose from unregistered agricultural land to non-agricultural land or other land.
Lawyer Hoi recommends, investors need to carefully check the legal records of the land plot, to ensure that the transferor is qualified to perform the transfer of land use rights.
Investors need to look up the general development planning information of the area to see if the land plot they intend to transfer has a basis to be allowed to change the use purpose or not, if so, what is the cost of the conversion. What is the process and procedure for converting to residential land? And when conducting land purchase and sale transactions, to ensure legal value and avoid risks if disputes arise, investors need to sign a notarized or authenticated transfer contract.
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