On March 22, 2022, the Hanoi Department of Natural Resources and Environment issued a decision to temporarily suspend the acceptance and processing of administrative procedures related to the division of agricultural land and non-agricultural land that is not residential land. This decision has somewhat affected land transactions in Hanoi.
In Hanoi , land prices fell most sharply in Thanh Tri district, down 13%, while interest decreased most significantly in Gia Lam district, down 24%. (Photo: HU)
However, on April 26th, the Hanoi Department of Natural Resources and Environment revoked this decision. Accordingly, the agency requested the People's Committees of districts, towns, and related agencies and units to consider and resolve administrative procedures related to adjusting land parcel division and consolidation for land users in accordance with regulations.
Mr. Le Dinh Hao, Director of Sales for the Northern region of Batdongsan.com.vn, assessed that allowing land subdivision again is a "small ray of hope" for the Hanoi land market.
Mr. Hao believes that the prolonged sluggishness in land transactions from 2022 to the present is due to several factors such as capital availability, interest rates, and supply.
Big data from Batdongsan.com.vn shows that land prices in areas such as Hoai Duc, Ba Vi, Thanh Tri, Soc Son, Dong Anh, and Gia Lam decreased by 1% - 13% in the first quarter of this year compared to the fourth quarter of 2022, and interest levels also decreased by 4% - 24% depending on the area.
Specifically, land prices decreased the most in Thanh Tri district, down 13%, while interest decreased the most in Gia Lam district, down 24%.
Given this reality, Mr. Hao believes that for the land market to develop more sustainably, greater support is needed, such as promoting the relocation of administrative centers, industrial zones, projects, and universities to the outskirts of Hanoi; and investing more aggressively in satellite urban areas to the west such as Hoa Lac and Xuan Mai, and to the north of the Red River such as Me Linh, Soc Son, and Dong Anh.
"In addition, the market needs real estate loan packages with more suitable interest rates, below 10% instead of the average 11% - 13%, and priority should be given to lending for properties that are put into production and business, generating cash flow and being more stable, rather than speculative properties," Mr. Hao commented.
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