The real estate market has begun cooling down after a long hot spell.
|Land plots around the currently constructed Long Thanh Airport will continue to increase in value, Photo: Phan Cong
According to Tran Hien Phuong, general director of Sea Holdings JSC, some local real estate centres are using false information regarding land ownership to push up prices of land around the airport. “Land brokers have been approaching buyers via social networks and directly consulting land plot owners. Many buyers have been reported to have been caught in this trap,” Phuong said. “Buyers must be more careful because there are many false reports on projects around Long Thanh Airport.”
Phuong also claimed that the lack of official information on planning and zoning of the area was one of the reasons buyers are falling victim to false information. “Local authorities must be more active in leading and instructing buyers on land usage by setting up public offices, used to check on targeted projects,” she suggested.
Local resident Nguyen Khoa told VIR that buyers must pay much more attention to the land plots which were previously agricultural land.
“Many local landlords are dividing their agricultural land into smaller plots to sell them. However, those plots will not be used for housing, only for planting crops,” Khoa said.
Phan Cong Chanh, a private real estate consultant, said that even if the land around Long Thanh Airport in increasing in value, it could take many years for purchases to be worthwhile. “Therefore, investments in the land here do not amount to much for short-term investors. Meanwhile, brokers must also be more cautious with dossiers of the land plots,” Chanh said.
At present, most of the area around Long Thanh Airport is meant for planting crops and dairy farming.
“Land funds around Long Thanh Airport are very large but investors need to carefully consider the status of the land and its market potential to avoid risks,” Chanh said.
With the decision from the government to set up Long Thanh Airport, the land’s attraction in the area has been skyrocketing on a daily basis.
Figures from the Vietnam National Real Estate Association show that a 100-square-metre land plot in the area is advertised for over VND1.5 billion ($65,000), double the price compared to six months ago. Some plots in the southern part of the region, which can used for services development in Bau Can and Tan Hiep district, are even more expensive.
However, the increase of the land prices in Dong Nai was not only caused by the construction of Long Thanh Airport, as many buyers have been rushing to neighbouring provinces amid a limited supply of new projects in Ho Chi Minh City.
Land plots in Long Thanh are now traded anywhere from VND18 to VND40 million ($800-1,700) per sq.m, with land plots located along the National Highway No.51, linking Vung Tau city and Dong Nai, offered from VND50-60 million ($2,200-2,600) per sq.m – prices equivalent to those in some areas of Ho Chi Minh City.
By Ngoc Anh