Land prices in Phu Tho and Hoa Binh skyrocket: Investors need to be alert

Phu Tho and Hoa Binh are becoming new "hot spots" in the real estate market on the outskirts of Hanoi, attracting the attention of many investors and residents. Planning, provincial mergers, and developed transport and tourism infrastructure are the main factors driving the growth of the real estate market in these two provinces.

Recently, many investors are looking to buy land in Viet Tri City, Phu Tho.

The attraction of planning and mergers

Information about the planning and merger of the province has created "undercurrents" in the Phu Tho real estate market. The fact that Viet Tri was chosen as the headquarters of many important administrative agencies such as the State Bank, Tax Department, State Treasury and Social Insurance has promoted the development of the city, at the same time creating a great demand for real estate.

In Hoa Binh , information on planning and tourism infrastructure development also contributes to increasing real estate values. In particular, Hoa Binh's suburban areas and industrial development areas are attracting the attention of many investors.

Both Phu Tho and Hoa Binh are investing heavily in transport infrastructure, with many highway and bridge projects being implemented. This helps connect the two provinces with major economic centers such as Hanoi, creating favorable conditions for economic and real estate development.

In addition, tourism infrastructure projects are also being focused on, especially in Hoa Binh, which has great potential for eco-tourism. This creates great attraction for investors and people with demand for resort real estate.

Compared to areas surrounding Hanoi, land prices in Phu Tho and Hoa Binh are still quite "soft", creating opportunities for investors to buy potential plots of land at good prices.

The real estate market in Viet Tri City has been witnessing unusual excitement in the past month, with land prices skyrocketing and transaction volumes increasing dramatically. In Viet Tri, commercial land prices in Minh Phuong area range from 30-34 million VND/m2, while in Tho Son ward, prices have increased from 15-17 million VND/m2 to 22-24 million VND/m2.

According to Mr. Ngoc Cam, a real estate broker with many years of experience in the locality, the main reason for this situation is the influx of a large number of investors from other provinces and cities.

"For about a month now, the number of people from other provinces and cities flocking to Viet Tri to buy land has increased dramatically. This has pushed land prices to unprecedented highs," said Mr. Cam.

According to Mr. Cam: "The buying and selling transactions are very active, even many urban areas that have been abandoned for many years are "hot" again."

In Hoa Binh, land prices have also fluctuated sharply. According to Mr. Hai, a real estate broker in Hoa Binh City, the number of townhouses for sale has increased dramatically recently. Many homeowners want to cut losses or reinvest in other channels due to the prolonged market slump.

Virtual fever and potential risks

However, the real estate market in Phu Tho and Hoa Binh is also facing potential risks. Taking advantage of the law of land price increase and information about planning and mergers, many individuals and organizations have created virtual fevers, pushing up land prices.

According to Dr. Nguyen Van Dinh, Chairman of the Vietnam Real Estate Brokers Association, most of these price increases are speculative in nature. Land fevers based solely on word of mouth information without accompanying investment and development plans often have short cycles, increase rapidly but are difficult to maintain at high levels for a long time.

Before deciding to invest, investors should carefully research information about the planning, legality and development potential of the area; should consult real estate experts to get useful information and advice.

In particular, it is necessary to be careful with information that exaggerates land prices, to avoid being trapped by "land brokers". Investors need to carefully study the land price level in the area they plan to invest in and understand the progress of planning changes to assess risks and growth potential.

Dr. Nguyen Van Dinh said that the State needs to strengthen the management and supervision of the real estate market, especially promoting the research, development and implementation of mechanisms and policies aimed at making the information system and data on the real estate market transparent.

At present, the real estate market is in the early stages of a new cycle, very "sensitive" to influencing factors. Therefore, all related entities need to take the common market as the key.

The Phu Tho real estate market is witnessing complicated developments, posing many risks to buyers. Mr. Tran Quang Tuan, Director of the Phu Tho Department of Construction, has just issued a warning about the situation of "land brokers" inflating prices, creating virtual prices, causing market disruption.

"People need to be especially careful when deciding to buy land, and should carefully research information at reputable real estate trading floors. Stay away from attractive offers from 'land brokers' of unknown origin," Mr. Tuan emphasized.

In response to reports of price inflation, price manipulation, and fraud, the Phu Tho Department of Construction has directed relevant agencies to promptly investigate. If violations are discovered, the Department will widely publicize warning information to the public.

According to Thoibaonganhang.vn

Source: https://baohoabinh.com.vn/12/199818/Gia-dat-Phu-Tho,-Hoa-Binh-tang-phi-ma-Nha-dau-tu-can-tinh-tao.htm