Warning about the risks of land speculation.

Land prices are skyrocketing.

Mr. Nguyen Minh Thao, from Tan Ha ward ( Tuyen Quang city), has just completed the procedures to purchase a plot of land in Group 19, Phan Thiet ward. According to Mr. Thao, about three months ago, the owner offered this plot of land for sale at 7 billion VND. However, after only two months, the price has risen to 8 billion VND. Mr. Thao shared: "I heard from real estate professionals that when the province is merged, land prices in Tuyen Quang city will increase even more, so even if I have to borrow more money, I will try my best to buy it."

Despite a genuine need to find residential land, Ms. Bui Thi Huyen, from Trai Mit village, Hao Phu commune (Son Duong district), is unable to afford a plot even in suburban areas due to the excessively high land prices. Ms. Huyen explained: "Having worked in the city for some time, I wanted to settle down and have repeatedly searched for residential land to buy. However, the prices quoted by landowners and brokers are always very high, so I've had to give up."

According to Ms. Huyen, even land in the inner city, in alleys and side streets, costs no less than 1 billion VND, depending on the size and location. In prime locations such as the Thinh Hung urban area in Tan Ha ward (Tuyen Quang city), plots of land measuring 5 x 18 meters are being advertised for around 3.6 billion VND, an increase of nearly 1 billion VND compared to the end of 2024. Similarly, the Ngoc Kim urban area in Hung Thanh ward has seen prices rise to 2.7 billion VND per plot of 5 x 20 meters, an increase of about 700 million VND compared to two months ago. With current land prices, even a worker saving up their entire life would find it difficult to afford a plot – Ms. Huyen expressed her concern.

People conduct land transfer transactions at Notary Office No. 1, Tuyen Quang City.

Ms. Tran Thi Binh, a lecturer specializing in Land Management at Tan Trao University, who has many years of teaching and research on land prices, stated that there are two reasons why land prices are being pushed up so high in a very short time. Firstly, taking advantage of information about the provincial merger, speculators and brokers have "inflated" land prices significantly, with some areas seeing increases of 20% - 30%, or even up to 50% within just a few weeks. When land prices rise rapidly, many people panic, fearing they will miss the opportunity, and therefore buy.

This is disrupting the market and negatively impacting those with genuine needs. Besides the information about the provincial merger, the upcoming land price framework will closely reflect market values, prompting some people to rush to buy, sell, and exchange land to avoid high taxes. This is also a reason for the recent surge in the land market.

People need to be vigilant.

Ms. Tran Thi Binh, a lecturer in Land Management at Tan Trao University, affirmed: Land price surges based on rumors are usually short-term and unsustainable phenomena. We have witnessed many land price surges with different causes. But the common point is that when rumors spread, prices are pushed up too high, and when the rumors subside or official information is released that doesn't meet expectations, land prices immediately cool down, or even completely disappear.

Looking back two months ago, before the news of the merger of Tuyen Quang and Ha Giang provinces, with Bac Quang district of Ha Giang as the central hub, many people in Tuyen Quang were already looking to buy land in Bac Quang. At that time, land prices in Bac Quang were considered the highest ever, while land prices in Tuyen Quang froze. However, when the information, although not yet official, that Tuyen Quang would become the administrative center of the two provinces after the merger was confirmed, land prices in Tuyen Quang, especially in Tuyen Quang city and surrounding areas, immediately skyrocketed.

Such localized land price surges can lead many buyers to purchase at high prices but struggle to sell when the market cools down. Speculation and buying and selling driven by herd mentality, without a basis in real estate development, can cause instability in property prices.

According to Ms. Tran Thi Binh, merging provinces/cities is an important step in the administrative restructuring and urban development process, and this is not the reason for the current skyrocketing land prices. Land must be managed according to its current status, and even if Ha Giang province merges with Tuyen Quang, there must still be state management agencies in Ha Giang; it's impossible to move all of them to Tuyen Quang. Therefore, the fact that some people are rushing to find and buy land at unprecedentedly high prices not only affects their own financial capabilities but also negatively impacts the province's real estate market.

Ms. Dinh Thi Thu Ha, Head of the Land and Surveying Department (Department of Agriculture and Environment), affirmed: Tuyen Quang does not lack land plots. Currently, many of the most modern urban areas, such as Danko Kim Phu Urban Area and the new urban area on the banks of the Lo River, are being invested in and built in Tuyen Quang city, more than enough to meet the needs of the people. Therefore, rushing to buy land in areas rumored by brokers at this time only disrupts the market and is likely to lead to significant risks.

Source: https://baotuyenquang.com.vn/canh-bao-rui-ro-tu-sot-dat-208628.html