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Why is the price of land in the sky?

Investors who take profits from securities switch to injecting capital into the real estate market, creating favorable conditions for “land triggers” to operate.

For several consecutive weekends, there was no longer a phone call to invite them to celebrate and eat from some “giant” friends who played the stock market, but only private messages with negative numbers in their accounts, complaints. When the stock price goes down to the floor, the land price stops.

Different from before the Lunar New Year, while many people in the service, tourism, and transportation industries were miserable because of COVID-19, the “playing evidence” lineup kept bouncing up and down according to the electronic board, sometimes it was green. pale purple. Numbers with codes keep dancing to the rhythm of investors. Sometimes the profit keeps increasing rapidly but it is easy to match orders, just a few steps within a few minutes and the account vibrates “chimp”.

The APS code at the beginning of 2021 is VND 4,283 shares, at the end of the year it is VND 39,300 shares. The price of land in the periphery before Tet is 18 million/square meter, after Tet is 25 million/square meter in the area around the center of Hai Phong within a radius of 15 km. Because of that, when the house plays the stock market, the profits are pouring in, so many people quickly convert to safe haven channels for their assets.

Status

The situation of “virtual land fever” has taken place in many provinces and cities recently.

At Tet, the real estate market was boiling hot, feverish more than COVID-19 fever. Just like Mrs. La Sat was inspired to take out a fan to fan Hoa Diem Son – the real estate kept on fire, the land price danced the Twist dance with everyone. Those who have a weak heart, the vestibule must be dizzy and dizzy because of the price of land. Then at the end of April, all of a sudden, real estate slowed down, the stock market was red, many exchanges “dance on the moon” meaning “white buyers”, especially codes related to FLC, Tan Hoang Minh …

What is the reason for high land prices? The answer is partly due to the COVID-19 pandemic. Specifically, during the period affected by the pandemic, especially the period of blockade and social distancing, production and business units were stalled, interrupted due to lack of labor, raw materials, broken chains. supply; the tourism, service, restaurant, hotel, transportation industries…, especially the aviation industry, are in a difficult situation for a long time. And, in order to stabilize the macro-economy to save businesses’ survival, bank interest rates have been reduced to the lowest possible level, helping businesses endure through difficult times.

The land in the periphery is slowing down

The land in the periphery is slowing down

In fact, the pandemic has caused some businesses to be profitable, holding huge amounts of money but unable to develop and expand production and business. But the pandemic also gives a number of industries related to online business, electronics, technology, etc. to have the opportunity to develop when the demand suddenly skyrockets due to serving students, students learning online, doing business through the internet. network. There is still a lot of idle money in people and businesses, so when bank interest rates are low, investors will naturally shift cash flows to another direction.

That’s why stocks, gold, virtual currencies, real estate… keep going up in price. Gold price difference between domestic and international is absurdly high but still active trading. Stocks have stocks, especially real estate, that have increased many times in less than a year. Real estate in the suburbs, subdivision of land for sale, boiling hot, overturning the actual price order. There are places like An Duong district, Hai Phong city, it is said funny that 1 square meter has 5 land storks. Every time I go to the alley, I meet a real estate agent, wherever I go, what I do, and whom I meet are all related to the land.

Addressing the fear of inflation, there are two safe absorption channels: Real estate and securities. Investors taking profits from “securities” switched to injecting capital into the land market, creating favorable conditions for “land storks” to operate. Banks lend money easily, with low interest rates, some people “fat it and fry it”, that is, borrow money to “surf” real estate, surf the top of the pile, switch hands continuously. The group of “sharks” pumped money to create waves, creating a fever for each area, pushing the price of land off the ground to the sky.

Resolution 128 of the Government with the motto “flexibly and safely adapting” untied production and business activities. Cash flow is returned to the value of producing goods, valuable material wealth, will definitely need capital. Therefore, stocks, real estate, virtual currency …, will be sold to collect to invest in production, purchase equipment, raw materials, pay labor …

Hopefully this recovery will pull land and stock prices to their true value. In order for the vast majority of middle-income workers to be able to own houses and land – “settle and live happily” – the state needs to have policies to support the construction of houses and apartments towards people with genuine needs for housing. accommodation with preferential loans. Besides, it is necessary to survey the exact situation, instead of letting speculators buy it and leave it, wasting resources, widening the gap between rich and poor.

According to DDDN

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