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| Land plots in Thai Nguyen City are attracting many buyers. |
Investors are rushing to "hunt for bargains".
According to observations by reporters from Thai Nguyen Newspaper, since the Lunar New Year, the real estate market in the province has been heating up day by day. Many areas in Thai Nguyen City, such as Thang Long Urban Area, Danko City, and residential area No. 1 near GO! Shopping Center, have become the focal point of a price surge. In just over a month, many land plots here have increased by 4-5 times. Specifically, a lake-view land plot in Thang Long Urban Area is currently being offered for sale at over 42 million VND/m², an increase of more than 5 million VND/m² compared to before Tet.
Representatives from several large real estate companies and offices in Thai Nguyen, such as Minh Tan Land, Hong Phat Land, and the Construction and Architecture Real Estate Joint Stock Company, confirmed that the number of transactions has surged, especially in the land plot, townhouse, and apartment segments.
Mr. Le Duc Quyet, from Le Quyet Land real estate transaction office, said: "The number of customers looking to buy land has increased dramatically, mainly those seeking houses and land with clear planning and complete legal documents. They are hunting for plots of land with beautiful locations and full amenities to capitalize on the information about the provincial merger."
Not only the central area, but also suburban areas like Quyet Thang and Phuc Xuan communes have become "hot spots" since the international 6-star resort project commenced. Small and medium-sized land plots priced under 1.5 billion VND are quickly being sought after by small-scale investors.
Ms. Nguyen Minh Tam, from Tan Lap ward, Thai Nguyen city, shared: "I've been looking at land for weeks now, and the prices keep increasing. The other day it was 1.2 billion VND, the next day it was 1.4 billion VND. I'm really worried because I'm afraid I'll miss the opportunity if I don't buy, but if I do buy, I'm worried the price is artificially inflated."
A representative from the Tax Department of Thai Nguyen City informed: In just the first two months of this year, we received nearly 2,500 land use right transfer applications. The amount of tax collected from these transactions also increased by more than 30% compared to the same period last year.
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| Land prices in the Danko Urban Area (Thai Nguyen City) are heating up again. |
Several factors are converging to drive up land prices.
Experts believe that the surge in real estate prices in Thai Nguyen City during this period is not simply due to the news of the provincial merger, but is also the result of a combination of factors.
Although no official decision has been made regarding the merger with any locality, the selection of Thai Nguyen as the location for the headquarters of the State Bank of Vietnam Region V, the Tax Department Region VII, and the State Treasury Region VII has immediately become a "catalyst" for a vibrant real estate market.
The expectation of a new administrative and economic center emerging after the merger is driving a strong influx of capital into the land market. Historically, previous mergers have shown that areas chosen as administrative centers often see land prices increase by 30-50% in a short period.
At the same time, the rising inflation and continuously soaring gold prices are prompting many investors to shift their focus to real estate. Many openly believe that buying land now is both an opportunity to anticipate future planning and a way to protect their capital against the unpredictable fluctuations of the economy.
Furthermore, major policy changes, with the amendments to the Land Law, Real Estate Business Law, and Housing Law officially taking effect from mid-2024, have also created a new wave in the market. Simplified procedures and tightened legal regulations give buyers more peace of mind when making investments, further boosting market demand significantly.
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| Residents of Phuc Xuan commune (Thai Nguyen City) are leveling land for sale ahead of reports that many investors are looking to buy land in suburban areas. |
Warning about the risk of a "speculative bubble"
Despite the booming market, many experts are concerned about the growing risk of a real estate bubble in Thai Nguyen. Taking advantage of FOMO (fear of missing out), brokerage groups and land speculators are spreading false rumors, driving up land prices dramatically, far exceeding their true value.
Given the complex developments, real estate experts warn investors to be extremely cautious and avoid following herd mentality or unverified information. Choosing areas with clear planning, complete legal documentation, and genuine development potential is crucial to minimizing risks.
Mr. Pham Duc Thuan, Head of the Vietnam Real Estate Brokers Association (VARS) representative office in Thai Nguyen, commented: "These kinds of land price surges usually develop rapidly, with artificial price increases driven by psychology and rumors. If not properly controlled, it is very easy for small-scale investors to buy when prices are inflated, and then get 'stuck' when the market cools down."
Mr. Thuan also advised investors to carefully consider their options and limit the use of high financial leverage in a volatile and unpredictable market.
According to experts, the real estate market in Thai Nguyen will continue to experience significant fluctuations in the coming period. Therefore, only investors with a thorough understanding of the market, a medium- to long-term strategy, and sufficient financial resources can optimize profits from this potentially lucrative but also risky "game."
Source: https://baothainguyen.vn/thoi-su-thai-nguyen/202503/thi-truong-bat-dong-san-bien-dongco-hoi-lon-nhung-rui-ro-can-ke-2c204fb/
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