Real estate market: Optimistic signals

One day in early April, we and the transaction staff of Phu Thanh Real Estate Company Limited (Dong Phong Ward, Lai Chau City) took customers to see the land plot on Ngo Si Lien Street (Group 23, Dong Phong Ward). According to the transaction staff, for more than a month now, land prices in the Ngo Si Lien area have started to increase after Lai Chau province was not included in the merger. Previously, land prices in this area only fluctuated from 1 - 1.05 billion VND/lot, now they have increased from 1.1 - 1.2 billion VND/lot. And, it is on the rise. Because we had exchanged information beforehand, the transaction staff only took customers to see the actual site and surrounding environment, thanks to which the transaction between the two parties took place quickly.
Not far from Ngo Si Lien Street is Hoang Minh Giam Street (Group 23, Dong Phong Ward). Land prices here have also begun to increase. Specifically, before 2024, in this area, the price was from 1.5 - 2 billion VND/land plot, but when there was information that the Government had a policy of merging provinces and cities, it decreased to 1.05 - 1.1 billion VND/land plot. However, recently, it has increased again, fluctuating from 1.3 - 1.9 billion VND/land plot.
Mr. Le Van Hong in residential group 7 (Quyet Tien ward) shared: I intend to buy a piece of land in Dong Phong ward. Through Phu Thanh Real Estate Company Limited, I learned that the owner of the land lot on Hoang Minh Giam street is selling it. Now I and the transaction staff are going to see the actual situation and learn more about a few other locations. If it is reasonable, I will buy it as soon as possible.

Customers and staff of Phu Thanh Real Estate Company Limited signed a contract for the sale and transfer of land use rights.

According to real estate brokers, knowing that Lai Chau province will not merge with another province, land prices have started to increase again, stabilizing compared to before 2024. Ms. Bui Thi Duyen - manager of Phu Thanh Real Estate Company Limited said: For real estate, the State's policies and guidelines will have the most direct and strongest impact on prices. For example, the implementation of merging provinces and cities across the country has greatly affected Lai Chau's land prices. When there was information on the sidelines that Lai Chau could merge with a neighboring province, most of the land prices in the area simultaneously decreased by 20 - 40%; when there was official information, land prices started to increase again and stabilized.
Prices are always fluctuating greatly, increasing, mainly concentrated on central roads such as: Tran Hung Dao (Doan Ket ward); Tran Phu, Nguyen Chi Thanh, Ngo Quyen street (Tan Phong ward) ... These are places with high population density, convenient transportation, effective business and trade. However, for plots of land on the routes: Tran Duy Hung, Ton That Bach and Dinh Bo Linh (belonging to residential group 27, Dong Phong ward) ... real estate experts have to witness many points, land prices go in the opposite direction, even decrease quite deeply. Because the main items of essential infrastructure such as electricity, roads, water have not been completed, hundreds of plots are still "sleeping". Compared to the starting price that state agencies auctioned before, it is currently unchanged or decreased deeply. And, on average from 800 million VND to 1 billion VND/lot depending on the road and location.
Lai Chau is a mountainous province without industrial zones, especially with a small population; the demand for buying and selling land is mostly among cadres, civil servants and public employees, but up to now they basically have at least 1 plot of land, so the demand for buying and selling is gradually decreasing. In particular, real estate investors from other provinces coming to Lai Chau are almost non-existent, while Lai Chau's land fund is still relatively abundant. Therefore, the situation of land prices increasing compared to real prices or in other words, signs of a land price bubble in Lai Chau province in general and in Lai Chau city in particular are almost non-existent; land prices in Lai Chau compared to other provinces are always low and basically stable.
Also according to information from Duong Quoc Dai Notary Office (Tan Phong Ward), after Lai Chau was not included in the province's merger, the number of transactions on land use rights transfer contracts tended to increase by more than 10%. However, most of the transactions were of people in the province serving personal needs, it was very rare to see transactions of people from other provinces coming to buy land.
Hopefully, in the coming time, Lai Chau province will have many preferential policies to attract real estate investors, promoting the province to develop more and more strongly.

Source: https://baolaichau.vn/kinh-te/thi-truong-bat-dong-san-tin-hieu-lac-quan-1307700