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

Latest real estate: Many apartment projects have been used for more than 5 years, the price has doubled. (Source: Dan Tri)

Old and under construction apartments are all set up at new prices

According to Vanguard, apartment prices in Hanoi, although not peaking as in mid-2022, are rising to very high levels in all segments. Apartment prices in some apartments have doubled compared to 5 years ago.

Five years ago, the price of affordable apartments near Hanoi such as Thanh Tri and Hoai Duc was only about 5-14 million VND/m16, even in Thanh Ha area (Ha Dong) just over 2 million VND/m8. At that time, many people chose locations far from the center because the price of commercial houses was only 2 billion VND/unit or less. This price is suitable for many low-income urban families.

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), was sold more than 5 years ago for 14-15 million VND/m2, now many people sell for up to 28-30 million VND/m2.

Dai Thanh apartment complex (Thanh Tri, Hanoi) 10 years ago, the original price was 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 HH Linh Dam apartment complex (Hoang Mai) despite being caught in a "controversy" related to the investor's violation of the "red book" job, people also sell at a high price.

The 69m2 apartment in 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 used apartments increase in price, in Linh Dam area (Hoang Mai), new apartment prices of Hung Thinh Group are being sold for over 30 million VND/m2.

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

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

According to a report of the Ministry of Construction, the construction unit price of 1m2 of an apartment building depends on the height of the building. Specifically, according to the latest construction price list, the apartment is less than 5 floors high, has a basement, the construction cost is from 8,6 to 13,1 million VND/m2. The apartment is 36-50 floors high, with basement, construction cost is 15,6 - 18,3 million VND/m2. An apartment building, in addition to construction costs, accounts for 35-45% of the selling price, also includes many other costs such as: land, management fees, sales...

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 needs and houses. Apartment prices increased due to rising construction costs as well as limited supply.

Hanoi grants investment policy for new social housing project

Recently, the Hanoi People's Committee has decided to approve the investment policy of Vinh Hung high-rise social housing project at 4-6-8 Vinh Hung street, Thanh Tri ward, Hoang Mai district.

Vinh Hung high-rise social housing project is implemented with a land use scale of about 4.516m2 in the planning plot F1/HH6 according to the H2-4 urban subdivision planning approved by the Hanoi People's Committee in Decision No. 6499/QD-UBND dated November 27, 11 to build high-rise social housing. Accordingly, the construction density of the podium is about 2015%, the tower block is about 66%, the floor is about 60 floors with a maximum population of about 31 people.

As expected, 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 lawfully 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 has decided to approve the investor Vinh Hung Real Estate Business Investment Joint Stock Company and Hoa Binh Co., Ltd. to cooperate in investment and implementation of the Vinh Hung high-rise social housing project at the location 4-6-8 alley 321 Vinh Hung street, Thanh Tri ward, Hoang Mai district, Hanoi city.

Regarding the implementation schedule, the project will be built from the second quarter of 2023 to the fourth quarter of 2025. Accordingly, the Hanoi People's Committee requires investors to comply with the approved contents, project schedule and planning, according to the contents of the granted Construction Permit, ensure quality and comply with current regulations on construction investment management.

The Vinh Hung high-rise social housing project was built with the goal of contributing to meeting the housing needs and stabilizing the lives of officials and employees of central agencies, officials and employees of Hoang Mai district and low-income people in Hanoi.

Hau Giang invests VND 120 billion to build a resettlement area

Hau Giang Provincial People's Committee has just issued Decision No. 906/QD-UBND approving the project of Tan Phu Thanh Commune Resettlement Area 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 investor of the project is the Management Board of civil and industrial construction investment projects in Hau Giang province. Construction investment project of Tan Phu Thanh Commune Resettlement Area Phase 2 with a total land area of ​​about 5,993ha, including the following items: Leveling; Roads - sidewalks - trees; Rainwater drainage system; Wastewater drainage system, Waste water treatment area; Water supply system – Fire protection; Electricity distribution system; Lighting systems; Park.

Total investment is 120 billion VND; The source of investment capital is the local budget; Project implementation progress period 2023-2026.

The investment objective is to arrange the resettlement foundation for the affected households when performing compensation, support and resettlement work for Tan Phu Thanh Industrial Park project and projects in Chau Thanh A district.

Hau Giang Provincial People's Committee assigns Hau Giang Province Civil and Industrial Construction Investment Project Management Board to be responsible for implementing in accordance with regulations. Assign the Directors: 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 project in Hau Giang province; Heads of relevant agencies and units are responsible for the implementation of this Decision.

Procedures for change of land use purpose

According to Decree 91/2019/ND-CP, the use of agricultural land for other purposes without the permission of the competent authority will be considered an administrative violation in the field of land and will be subject to corresponding sanctions.

In order to be issued a red book for land use, land users must follow the registration process and apply for permission to convert the land use purpose from agricultural land to residential land. (Source: BXD)

Clause 1, Article 6 of the 2013 Land Law sets out a fundamental and important principle when using land, which is to comply with the correct master plan, plan and purpose of land use.

According to Decree 91/2019/ND-CP, the use of agricultural land for other purposes without the permission of the competent authority will be considered an administrative violation in the field of land and will be subject to corresponding sanctions.

Building houses on agricultural land that has not yet been converted to use purposes is a violation of the law, which can result in a fine of up to 500 million dong and forcible remedial action and restoration of the original state of the land.

In order to be issued a red book for land use, land users must follow the registration process and apply for permission to convert the land use purpose from agricultural land to residential land. This process requires the implementation of administrative procedures as prescribed by law.

Land users need to apply for permission to change the land use purpose at the competent authority. Through the provision of relevant documents and information, the competent authority will review the application and check the legitimacy of the land use conversion.

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

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

First, prepare a set of application documents for change of land use purpose including the following documents: Application for change of land use purpose according to Form No. 1 issued together with Circular 01/30/TT-BTNMT; Certificate of land use right or Certificate of ownership of houses and residential land use rights or Certificate of land use rights, ownership of houses and other assets attached to land.

After that, the land user submits 1 set of application for change of land use purpose to the Department of Natural Resources and Environment for settlement according to its competence.

The Department of Natural Resources and Environment will conduct the verification of the dossier, if the dossier is incomplete or invalid, within 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, you need to pay land use levy according to the notice of land use levy payment of the tax office. The land use levy payable by the land user when changing the use purpose of agricultural land allocated by the State without the collection of land use levy to residential land, the land use levy shall be equal to the difference between the land use levy calculated at the residential land price and the land use levy calculated at the agricultural land price at the time of the decision to change the purpose of the competent State agency.

The above provisions also apply to the case of changing the use purpose of agricultural land allocated by the State without collection of land use levy, which originates from receiving the transfer of lawful land use rights according to the land law of the land user to residential land.

Finally, the land user receives the decision to allow the change of land use purpose at the Department of Natural Resources and Environment where the application for change of land use purpose has been submitted.