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| Latest real estate: In Hanoi , the supply of new apartments decreased by 14%/year in the period from 2018-2022, the average selling price increased by 13%/year. (Photo: Hoang Ha) |
Long-term apartments still profitable to sell
In the past 2-3 years, the apartment market has become increasingly scarce with new projects opening for sale. The primary supply is low, and apartment prices on the secondary market are constantly "dancing". Currently, the prices of apartments that have been handed over and used for several years are still quite high. Compared to the initial purchase price, customers have made billions in profit after many years of living there.
According to a survey, in some areas with many apartment buildings in Hanoi such as Thanh Xuan district, the price of apartments for sale ranges from 2.5 to 3.7 billion VND for 2-bedroom apartments. 3-bedroom apartments cost from 4 billion VND or more.
For example, many apartments in projects located on Le Van Luong Street have a selling price of 3.4-3.8 billion VND for a 2-bedroom apartment with full furniture and from 4 billion VND or more for a 3-bedroom apartment.
At the Hanoi Center Point project, apartments are being offered for sale at prices ranging from 41-50 million VND/m2. A 65m2 apartment with 2 bedrooms is being offered for sale at 3.3 billion VND; that is, each m2 costs more than 50 million VND.
Or apartments located on Nguyen Tuan Street, the selling price of 2-bedroom apartments ranges from 3.1-3.5 billion VND/apartment. On Nguyen Huy Tuong Street, the price of 2-bedroom apartments ranges from 2.5-3.2 billion VND/apartment.
In Cau Giay district, apartments located in projects on Cau Giay street have selling prices ranging from 2.7-3.6 billion VND/2-bedroom apartment, 3-bedroom apartment has prices from 3-4.7 billion VND/apartment.
The apartment building is located on Tran Thai Tong street, 2-bedroom apartments cost from 2.7-3.6 billion VND/apartment; 3-bedroom apartments cost from 3.7-4.6 billion VND/apartment.
Or in the Nam Trung Yen area, with newly built buildings, the selling price ranges from 2.9-3.5 billion VND/apartment with 2 bedrooms, 3-bedroom apartments cost from 4 billion VND or more. As for apartments in old, degraded resettlement apartment buildings, the selling price of 2-bedroom apartments is 1.9-2.5 billion VND/apartment, 3-bedroom apartments cost from 3.2-3.7 billion VND/apartment.
According to Savills statistics, in Hanoi alone, the supply of new apartments decreased by 14% per year from 2018 to 2022, the average selling price increased by 13% per year. Currently, the price of primary apartments is 48% higher than the secondary price. This promotes the secondary market to be more active.
In addition, secondary supply in the market also tends to increase slightly due to a group of individual investors having difficulty balancing cash flow in the context of rising interest rates.
Mr. Troy Griffiths, Deputy Managing Director of Savills Vietnam, assessed that the current apartment market has a special feature in that there is almost no primary supply. This means there is no new housing supply for home buyers with real housing needs. Therefore, they are forced to seek supply from the secondary market. Since the beginning of the year, the secondary apartment market has been heating up in both Hanoi and Ho Chi Minh City.
Mr. Troy Griffiths pointed out a notable point about the secondary market is the solid legal factor of the products. Most of the projects have been granted certificates of right to use. Meanwhile, in the primary market, we see quite a few projects facing obstacles around this issue.
According to Savills experts, on the other hand, the secondary market also depends a lot on interest rate adjustments in the coming time.
“With bank lending rates reaching 14-15%, this is quite a high level that forces home buyers to consider carefully. However, if interest rates can return to the pre-Covid-19 period of around 10-12%, this market will start to become more attractive and increase liquidity,” Mr. Troy Griffiths further analyzed.
Hanoi ready to start construction of Ring Road 4
On the afternoon of May 29, the Hanoi City Traffic Construction Investment Project Management Board said that Hanoi is urgently speeding up the progress of component projects of the Ring Road 4 - Hanoi Capital Region investment and construction project to start construction of this largest road in June.
According to the Project Management Board (PMB), to date, the capital plan has been arranged for VND 5,854.840 billion (development investment fund capital is VND 2,564.8 billion; capital plan for 2022 and 2023 is VND 3,290 billion); of which, the capital plan arranged for the PMB is VND 55 billion (capital plan for 2023 is VND 53.255 billion).
The capital plan allocated for districts to carry out site clearance is VND 5,799.84 billion (development investment fund capital is VND 2,564.8 billion; capital plan for 2023 is VND 3,235.04 billion).
The total disbursement value to date is 3,971.634 billion VND (capital from the development investment fund is 2,564.834 billion VND; planned capital disbursement is 1,406.8 billion), of which the Project Management Board has disbursed 2,394 billion VND; localities have disbursed 3,969.24 billion VND for site clearance, reaching 68.437%. In addition, the city also has a capital plan that has allocated hundreds of billions of VND for component projects...
Up to now, the Hanoi People's Committee has approved Component Projects 1.1; 2.1 and 3 (PPP Project), completing the appraisal of the feasibility study report by the construction professional agency. Currently, the Project Management Board and the consulting unit have completed the feasibility study report and submitted it to the Department of Transport on May 29, 2023.
It is expected that the Department of Transport will submit to the City People's Committee for consideration and submit a report to the Ministry of Planning and Investment and the State Appraisal Council before June 10, 2023.
Regarding the work of site clearance, compensation, support and resettlement in the districts in the past time, with the close direction of the City Party Committee, the City People's Committee and the participation of the entire political system, localities have focused on implementing the site clearance work and have achieved many positive results. The total number of tombstones moved is 6,007/10,921, reaching 55%.
Up to now, the Project Management Board has completed the selection of a consultant for surveying, preparing technical design and construction cost estimates for the high-voltage power transmission project from 110KV to 500KV. It is expected that the survey and technical design will be completed before June 15, 2023, submitted to the Department of Industry and Trade for appraisal in June 2023, and approved in July 2023 for technical design and cost estimates.
To date, all 4 construction packages have had their technical designs and estimates approved and are currently selecting contractors. Contracts are expected to be signed and construction started before June 30, 2023.
Up to now, the site clearance work is expected to be completed in June 2023, handing over 80% to start the project and handing over 100% of the site before December 31, 2023.
The city plans to start construction on the entire route in Hanoi at 4 locations. The project management board is proposing that the City People's Committee and the Department of Planning and Investment consider approving the adjustment of the 2023 public investment capital plan for the Ring Road 4 - Hanoi Capital Region construction investment project in Hanoi according to the proposal of the Project Management Board in Document No. 1215/BQLCTGT-KH dated May 19, 2023 and of the districts.
12 key projects in Dong Nai have land issues
According to the People's Committee of Dong Nai province, there are currently 21 key local and central projects and works (collectively referred to as projects) being implemented in the province; of which, 12 projects are stuck in site clearance and cannot ensure progress.
In recent years, Dong Nai has become a “big construction site” with many transport infrastructure projects being invested in and built. However, site clearance for the projects has encountered many difficulties and obstacles, and a series of projects do not have a clean site for construction.
Typical projects include the construction of Huong Lo 2; Dong Nai riverside road; Bien Hoa city center axis road; upgrading Provincial Road 763; renovating and upgrading Provincial Road 768; of which, Huong Lo 2 project started construction at the end of 2020 and is expected to be completed in mid-2022.
Up to now, there are still dozens of households and 1 organization in the project area that have not handed over the land, Huong Lo 2 has had to extend the deadline twice. The Dong Nai riverside road project started at the end of 2021, but now there are still hundreds of households that have not handed over the land, the contractor is completing procedures to extend the project completion schedule.
Along with that, the Bien Hoa-Vung Tau Expressway project and the Ring Road 3-Ho Chi Minh City (section through Dong Nai) are two national key projects, expected to start construction in June 2023, but site clearance in Dong Nai is very slow and has not met requirements.
Currently, the relevant units have only completed the mapping and land acquisition records. Because the land acquisition notices have not been issued to the people, the authorities have not been able to measure and count the land and assets. The target of handing over 70% of the site before the project starts is difficult to achieve.
To speed up the site clearance process, the Dong Nai Provincial People's Committee requested relevant agencies to focus on human resources and strengthen coordination to identify specific problems. From there, develop a plan to handle existing problems in land acquisition; at the same time, accelerate the construction of resettlement areas, ensuring housing for people who give up land for the project.
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| Illegal construction on agricultural land in Van Binh commune, Thuong Tin district, Hanoi. (Source: Construction Newspaper) |
Penalties for building houses on agricultural land
According to Construction , Articles 9, 10, 11 of Decree 91/2019/ND-CP clearly stipulate that when using land for the wrong purpose, building houses on agricultural land without changing the land use purpose, a fine will be imposed and remedial measures will be applied, including measures to force restoration to the original state.
Article 9 of this Decree stipulates the level of penalties for using rice-growing land for purposes other than those permitted by competent State agencies.
Specifically, for the act of converting rice-growing land to perennial crop land or forest land (except for the case specified in Clause 7, Article 14 of Decree No. 43/2014/ND-CP amended and supplemented in Clause 11, Article 2 of Decree No. 01/2017/ND-CP), the form and level of penalty will increase according to the area of violation.
Fine from 2,000,000 VND to 5,000,000 VND if the area of land illegally converted to another purpose is less than 0.5 ha.
Fine from 5,000,000 VND to 10,000,000 VND if the area of land illegally changed its purpose is from 0.5ha to less than 1ha.
Fine from 10,000,000 VND to 20,000,000 VND if the area of land illegally converted to another purpose is from 01ha to less than 03ha.
Fine from 20,000,000 VND to 50,000,000 VND if the area of land illegally converted to another purpose is from 03 hectares or more.
The form and level of penalty for converting rice-growing land to aquaculture land or salt-making land are as follows:
Fine from 3,000,000 VND to 5,000,000 VND if the area of land illegally converted to another purpose is less than 0.1 ha.
Fine from 5,000,000 VND to 10,000,000 VND if the area of land illegally converted to another purpose is from 0.1ha to less than 0.5ha.
Fine from 10,000,000 VND to 20,000,000 VND if the area of land illegally converted to another purpose is from 0.5ha to less than 1ha.
Fine from 20,000,000 VND to 30,000,000 VND if the area of land illegally changed its purpose is from 1ha to less than 3ha.
Fine from 30,000,000 VND to 70,000,000 VND if the area of land illegally converted to another purpose is 3 hectares or more.
The form and level of penalty for converting rice-growing land to non-agricultural land in rural areas are as follows:
Fine from 3,000,000 VND to 5,000,000 VND if the area of land illegally converted to another purpose is less than 0.01 ha.
Fine from 5,000,000 VND to 10,000,000 VND if the area of land illegally converted to another purpose is from 0.01ha to less than 0.02ha.
Fine from 10,000,000 VND to 15,000,000 VND if the area of land illegally converted to another purpose is from 0.02ha to less than 0.05ha.
Fine from 15,000,000 VND to 30,000,000 VND if the area of land illegally converted to another purpose is from 0.05ha to less than 0.1ha.
Fine from 30,000,000 VND to 50,000,000 VND if the area of land illegally converted to another purpose is from 0.1ha to less than 0.5ha.
Fine from 50,000,000 VND to 80,000,000 VND if the area of land illegally converted to another purpose is from 0.5ha to less than 1ha.
Fine from 80,000,000 VND to 120,000,000 VND if the area of land illegally converted to another purpose is from 1ha to less than 3ha.
Fine from 120,000,000 VND to 250,000,000 VND if the area of land illegally converted to another purpose is 3 hectares or more.
Converting rice-growing land to non-agricultural land in urban areas shall be subject to two (2) times the penalty prescribed in Clause 3 of this Article.
In addition, the violator is forced to restore the original condition of the land and return any illegal profits gained from the violation...
In addition, Article 10 of Decree 91/2019/ND-CP stipulates penalties for using special-use forest land, protective forest land, and production forest land for purposes other than those permitted by competent State agencies. The maximum fine is up to VND 500 million and the consequences must be remedied.
Article 11 of Decree 91/2019/ND-CP stipulates penalties for using agricultural land that is not rice land, not protective forest land, not special-use forest land, not production forest land for other purposes not permitted by competent State agencies. The highest fine is up to 400 million VND and forced to remedy the consequences.
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