Apartment prices increase dramatically, Hanoi is about to have more social housing projects, procedures for changing land use purposes

Apartment buildings set new price levels, some places doubled; Hanoi grants investment policy for new social housing projects; Procedures for converting land use purposes from agricultural land to residential land... are the latest real estate news.

Latest real estate: Many apartment projects have been used for over 5 years, prices have doubled. (Source: Dan Tri)

Old and under construction apartments all have new price levels.

According to Tien Phong , apartment prices in Hanoi, although not reaching the peak in mid-2022, are increasing to very high levels in all segments. Apartment prices in some apartment buildings have doubled compared to 5 years ago.

Five years ago, the price of affordable apartments in the suburbs of Hanoi such as Thanh Tri and Hoai Duc was only around 14-16 million VND/m2, even Thanh Ha area (Ha Dong) was only over 8 million VND/m2. At that time, many people chose locations far from the center because the price of commercial houses was only 1.5 billion VND/unit or less. This price was suitable for many low-income families in urban areas.

However, up to now, many projects have been used for more than 5 years, the price has doubled. For example, Gemek Tower (Hoai Duc, Hanoi), sold more than 5 years ago for 14-15 million VND/m2, now many people sell it for up to 28-30 million VND/m2.

Dai Thanh apartment complex (Thanh Tri, Hanoi) 10 years ago had an original price of 10 million VND/m2, but now people sell it for 20-24 million VND/m2.

Near the center like Hoang Mai district, the price of used apartments has also increased rapidly. Even the HH Linh Dam apartment complex (Hoang Mai) despite being involved in a "scandal" related to the investor's violations in making "red books", people are still selling it at quite high prices.

A 69m2 apartment at Dai Kim Building (Hoang Mai, Hanoi) was also sold for 2.1 billion VND, more than double the original price 6 years ago. Thus, from 14 million VND/m2, this apartment has increased to 31 million VND/m2.

Not only are used apartments increasing in price, in Linh Dam area (Hoang Mai), new apartments of Hung Thinh Group are being sold at over 30 million VND/m2.

A leader of Kinh Do Company, which is working on the Thanh Tri project (Hanoi), said that apartment prices have recently been pushed up too high due to scarce supply. In addition, construction costs have increased many times compared to 5 years ago. This person affirmed that if the supply is not improved, apartment prices will "hardly decrease".

Deputy General Director of Geleximco Vu Van Hau said that the company is promoting an apartment project on Le Trong Tan Street (Ha Dong, Hanoi) but the price is not cheap, estimated at around 30 million VND/m2.

According to the report of the Ministry of Construction, the construction price of 1m2 of apartment building depends on the floor level. Specifically, according to the latest construction price list, apartment buildings under 5 floors high, with basement, construction costs from 8.6 to 13.1 million VND/m2. Apartment buildings from 36-50 floors high, with basement, construction costs from 15.6 to 18.3 million VND/m2. In addition to the construction cost accounting for 35-45% of the selling price, an apartment building also includes many other types of costs such as: land, management fees, sales, etc.

A representative of the Ministry of Construction said that in the first 5 months of this year, the apartment segment continued to attract the attention of customers with real housing needs and households. Apartment prices increased due to increased construction costs as well as scarce supply.

Hanoi grants investment policy for new social housing project

Recently, the Hanoi People's Committee has decided to approve the investment policy of the Vinh Hung high-rise social housing project at No. 4-6-8 Vinh Hung Street, Thanh Tri Ward, Hoang Mai District.

The Vinh Hung High-rise Social Housing Project is implemented with a land use scale of about 4,516m2 in planning block F1/HH6 according to the H2-4 Urban Zoning Plan approved by the Hanoi People's Committee in Decision No. 6499/QD-UBND dated November 27, 2015 to build high-rise social housing projects. Accordingly, the construction density of the base block is about 66%, the tower block is about 60%, the height of about 31 floors with a maximum population of about 1,154 people.

As planned, the investment capital of Vinh Hung High-rise Social Housing project is about 1,183.4 billion VND, of which the investor's contributed capital is about 256.7 billion VND, accounting for 21.69% of the total investment capital, the rest is borrowed capital and other legally mobilized capital, accounting for 78.31% of the total investment capital.

In the decision approving the investment policy and approving the investor, the Hanoi People's Committee decided to approve the investor Vinh Hung Real Estate Investment and Trading Joint Stock Company and Hoa Binh Company Limited to cooperate in investing in the Vinh Hung High-rise Social Housing project at location No. 4-6-8, Lane 321, Vinh Hung Street, Thanh Tri Ward, Hoang Mai District, Hanoi City.

Regarding the implementation progress, the project will be built from the second quarter of 2023 to the fourth quarter of 2025. Accordingly, the Hanoi People's Committee requires the investor to properly implement the project content, progress and approved planning, in accordance with the content of the granted Construction Permit, ensuring quality and complying with current regulations on construction investment management.

The Vinh Hung High-rise Social Housing Project is built with the goal of contributing to meeting the housing needs and stabilizing the lives of civil servants, employees of central agencies, civil servants of Hoang Mai district and low-income people in Hanoi.

Hau Giang invests 120 billion VND to build resettlement area

The People's Committee of Hau Giang province has just issued Decision No. 906/QD-UBND approving the Tan Phu Thanh Commune Resettlement Area Project, Phase 2. Accordingly, the Tan Phu Thanh Commune Resettlement Area, Phase 2, has a total area of nearly 6 hectares, with a total investment of 120 billion VND.

The project investor is the Management Board of civil and industrial construction investment projects of Hau Giang province. The project invests in the construction of the resettlement area of Tan Phu Thanh commune, phase 2, with a total land area of about 5.993 hectares, including the following items: Site leveling; Roads - sidewalks - trees; Rainwater drainage system; Wastewater drainage system, Wastewater treatment area; Water supply system - Fire prevention and fighting; Power supply system; Lighting system; Park.

Total investment is 120 billion VND; Investment capital is from the local budget; Project implementation progress is in the period 2023-2026.

The investment objective is to arrange resettlement land for households affected by compensation, support and resettlement of Tan Phu Thanh Industrial Park project and projects in Chau Thanh A district.

The People's Committee of Hau Giang province assigns the Management Board of civil and industrial construction investment projects of Hau Giang province to be responsible for implementing in accordance with regulations. Assigns the Directors of: Department of Planning and Investment, Department of Finance, Department of Construction, Department of Natural Resources and Environment, Hau Giang State Treasury, Management Board of civil and industrial construction investment projects of Hau Giang province; Heads of relevant agencies and units to be responsible for implementing this Decision.

Procedures for converting land use purposes

According to Decree 91/2019/ND-CP, using agricultural land for other purposes without permission from competent authorities will be considered an administrative violation in the land sector and will be subject to corresponding sanctions.

Clause 1, Article 6 of the 2013 Land Law sets out a basic and important principle when using land, which is to comply with planning, plans and precise land use purposes.

Building a house on agricultural land that has not been converted to another purpose is a violation of the law and can result in a fine of up to VND500 million and the need to remedy the consequences and restore the land to its original condition.

To be granted a red book for land use, land users must comply with the registration process and request permission to change the land use purpose from agricultural land to residential land. This process requires the implementation of administrative procedures according to the provisions of law.

Land users need to submit an application for permission to change land use purpose to the competent authority. By providing relevant documents and information, the competent authority will review the application and verify the legality of the land use purpose change.

This process includes an assessment of the impact of the conversion on the environment, urban planning and the interests of stakeholders. If the requirements and conditions are met, the land user will be granted a red book certifying the ownership and purpose of the converted land use.

According to Article 57 of the 2013 Land Law, land users will be allowed to change the land use purpose from agricultural land to residential land if permitted by the competent state agency. To convert agricultural land to residential land, land users need to follow these steps:

First, prepare a set of documents to apply for land use purpose change including the following documents: Application for land use purpose change according to Form No. 01 issued with Circular 30/2014/TT-BTNMT; Certificate of land use rights or Certificate of house ownership rights and land use rights or Certificate of land use rights, house ownership rights and other assets attached to land.

Then, the land user submits a set of documents requesting to change land use purpose to the Department of Natural Resources and Environment for settlement according to authority.

The Department of Natural Resources and Environment will review the dossier. If the dossier is incomplete or invalid, within no more than 3 working days, the Department of Natural Resources and Environment will notify and guide the land user to supplement and complete the dossier according to regulations.

Next, it is necessary to pay land use fees according to the land use fee payment notice of the tax authority. The amount of land use fees that land users must pay when converting agricultural land allocated by the State without collecting land use fees to residential land, the land use fee is collected at the difference between the land use fee calculated according to the residential land price and the land use fee calculated according to the agricultural land price at the time of the decision to change the purpose of the competent State agency.

The above regulation also applies to cases of changing the purpose of using agricultural land allocated by the State without collecting land use fees originating from receiving legal land use rights transfer under the land law of land users to residential land.

Finally, the land user receives the decision allowing the change of land use purpose at the Department of Natural Resources and Environment where the application for change of land use purpose was submitted.

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