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Speculators getting bogged down in land trade deals in Ba Vi District
The sharp price decrease of land in Ba Vi district has made many land speculators suffer.
Just one month ago, price of land in the outlying district of Ba Vi skyrocketed every day. The rumour that a new national administration centre would be located in Ba Vi District made people think the price of land there would increase sharply. They believed that if they purchased land right at that moment, they would be able to sell the land later at much higher prices. This helped explain why so many people rushed to purchase land in Ba Vi district recently, though many of them knew little about Ba Vi before.
However, rumour is just that, rumour, and after local newspapers clarified the information and the government took action to stop the ‘land price fever,’ the land price here has been decreasing dramatically, especially the price of land in Xuan Son, Yen Bai, Van Hoa and Tan Linh communes.
According to the VnMedia newspaper, land plots with an area of 100 square metres each on Highway 88, which were sold at 500-600 million dong, are now selling at just 300 million dong.
The Vietnam-Mongolia farm area, which was once the ‘hottest point’ in Ba Vi District, because it was thought to be the location for the national administration centre, has seen its price drop even more dramatically. Land here is now selling at 100 million dong per sao (One sao is equal to 36 square metres), while just some days ago, sellers were asking for 300-350 million dong per sao.
Many in Ba Vi District regretted that they did not sell land in the ‘land price fever attack.’
“I have a land plot which covers an area of 600 square metres. At first, I intended to sell the land plot at 3 million dong per square metre. But then I changed my mind and I decided to ask for a higher price. However, as the land price fever has been over, no one wants to buy my land any more,” said Nguyen Van Dung in Xuan Son commune, in Ba Vi District.
Commenting about the price skyrockets, Nguyen Van Hai, Deputy Chairman of Ba Vi District, said speculators and some people spread news about the national administration centre in order to push prices up. Hai asserted that, in fact, the number of transactions only increased by 20 percent.
According to VnMedia, one year ago, when Ha Tay Province officially became a part of Hanoi, many real estate investors from big cities like Hanoi, Hai Phong and Quang Ninh, spent money to buy land plots here in Ba Vi, hoping to sell the land later at higher prices later. Therefore, they took full advantage of the information about the national administration centre in Ba Vi to push prices up to seek profit.
However, the ‘real estate bubble’ has gone flat, while many have been bogged down in land trade deals. Minh Ngoc, an investor, related that earlier this year he bought a land piece near Suoi Hai Lake at 4 billion dong. When land price fever broke out in Ba Vi, he offered to sell the land at 6 billion dong, but he could not find buyers.
“There were many visitors, but there was no buyer,” Ngoc said. “Now the prices have dropped dramatically, I don’t know when I can sell the land to take back my money.”
According to Nguyen Thi Huong, Director of An Khanh Real Estate trading floor, when the land price in Ba Vi skyrocketed, many people injected billions of dong into land in Ba Vi, hoping to earn fat profit selling the land later. Especially, many of them had to borrow money from banks to buy land. Now, as they cannot sell the land, they do not have money to pay bank debts.
vietnamnet, VnMedia
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