On March 22, 2022, the Hanoi Department of Natural Resources and Environment decided to temporarily stop receiving and handling administrative procedures related to land division for agricultural land and non- agricultural land that is not residential land. This decision has somewhat affected land transactions in Hanoi.
In Hanoi , land prices decreased the most in Thanh Tri district, down 13%, and interest decreased the most in Gia Lam district, down 24%. (Photo: HU)
However, on April 26, the Hanoi Department of Natural Resources and Environment canceled this decision. Accordingly, this agency requested the People's Committees of districts, towns, relevant agencies and units to consider and resolve administrative procedures related to land division and land consolidation for land users according to regulations.
Mr. Le Dinh Hao, Sales Director of the Northern region of Batdongsan.com.vn, assessed that allowing land subdivision again is a "small ray of light" for the Hanoi land market.
Mr. Hao said that the sluggish land transactions from 2022 until now are due to many reasons such as capital, interest rates, and supply.
Big data from Batdongsan.com.vn shows that land plots in areas such as Hoai Duc, Ba Vi, Thanh Tri, Soc Son, Dong Anh, Gia Lam in the first quarter of this year all had selling prices that decreased by 1% - 13% compared to the fourth quarter of 2022, and the level of interest also decreased by 4% - 24% depending on the area.
Of which, land prices decreased the most in Thanh Tri district, down 13% and the level of interest decreased the most in Gia Lam district, down 24%.
Faced with this reality, Mr. Hao said that in order for the land market to develop more sustainably, it needs greater support such as promoting the relocation of administrative centers, industrial parks, projects, and universities to the outskirts of Hanoi; investing more strongly in satellite urban areas in the West such as Hoa Lac, Xuan Mai and in the North of the Red River such as Me Linh, Soc Son, and Dong Anh.
“Along with that, the market needs real estate loan packages with more suitable interest rates, below 10% instead of the average of 11% - 13%, and prioritize lending to real estate that is put into production and business, creating cash flow and stability rather than speculative real estate,” Mr. Hao commented.
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