After a crazy land fever, the real estate market in Thuy Nguyen district, Hai Phong city has cooled down. These days, driving along provincial road 359, [...]
Crazy fever
Following the footsteps of a "land stork" named Dat, the reporter went to Khau Da residential area, in Thuy Son commune to see the land plots that had red books. Before the Lunar New Year, these plots of land were sold at prices ranging from 25-35 million VND/m² but there were very few transactions. Now, even though they are reduced by about 3-5 million VND/m², no one still asks. According to Dat, in some other areas in Thuy Nguyen, investors have not been "looking" for a long time, but now they are "vibrant" again but in fact there are no transactions. Specifically, in Cua Trai (Thuy Duong commune), Khau Da, Khang Doi, Go Gai (Thuy Son commune) areas..., land prices are trading around 15-20 million VND/m² but very few people buy.
At land plots in Hoa Dong and Lam Dong communes... the broker here said that in recent days, transactions have decreased significantly. Many consignors sell the land below the average price of the area, but no one buys even if they offer it. 2 months ago, the selling price was from 15-18 million VND/m² but now it is only about 13 million VND/m² and there are no buyers. Meanwhile, in the hot spots of land price increase, which are Duong Quan, Tan Duong, Thuy Son communes, Nui Deo town..., the situation is similar. In land plots for sale in Thuy Son, Thuy Duong, Hoa Binh... land prices tend to decrease.
The above situation is in contrast to the end of November 2020, when the city agreed on the policy of building a project to establish Thuy Nguyen city, the real estate market here began to boil. Some time ago, when the information about Thuy Nguyen coming to the city was just a "rumor", speculators went to "collect goods".
And in the feverish climax, land lots facing main roads in Nui Deo town increased "gallopingly", from 50-60 million VND/m² in mid-2019 to 80-90 million VND/m². Land on Road 359 in Thuy Son, the price also jumped from 70 million VND/m² to 100-120 million VND/m². Beautiful, prime locations near Hoang Van Thu bridge (Tan Duong commune), a year ago the price fluctuated around 16-20 million VND/m², but by the end of 2020 the selling price was 35-40 million VND/m².
Some plots of land in Tan Duong and Duong Quan communes, the common asking price is 22-25 million VND/m², while a year ago the highest common asking price was only 15 million VND/m².
Land in a resettlement area in Duong Quan also jumped to 40-42 million VND/m², the main plot adjacent to the roads cost 70-80 million/m², while the same period last year was only 18-22 million VND/m². In the communes of Thuy Son, Dong Son, Thuy Duong... a year ago, the price was only from 5-8 million VND/m² but also jumped to 15-18 million VND/m². The increase in land prices even occurred in places far from the district center such as Phu Ninh, Minh Tan, Gia Minh, Gia Duc communes... where land prices were originally only 2-5 million VND/m² but during the fever, prices "jumped" up to 12-15 million VND/m².
Cool down, sell to cut losses
But from the end of March until now, the Thuy Nguyen real estate market has suddenly been quiet. Land prices in areas of the district have tended to go sideways or decrease over the past 7 weeks after increasing from 5-25% in the first quarter. Convoys of speculators and investors from Hanoi, Quang Ninh, Bac Ninh, Hai Duong, locally, and even from the city. Ho Chi Minh's arrival here gradually decreased.
Ms. Le Thi Trang, in Thien Huong commune, said: "More than 2 months ago, a friend and I jointly bought a 110m² plot of land in Duong Quan commune for 3.2 billion VND with the hope of "surfing" to make a profit. However, after putting down money and continuing to offer for more than 1 month but still not seeing a buyer, I had to accept to sell at a loss for 3 billion VND. to recover capital. In just a short time, I lost 200 million trying to catch the land fever...".
The situation of cutting losses is taking place actively in the land segment, with landowners offering to sell at prices nearly half as low as current transactions on the market. Mr. Nguyen Van Nien, "Nien Phat" real estate transaction office, in Nui Deo town, said that since the end of March, the land market in communes in Thuy Nguyen district has shown signs of cooling down.
Successful transactions are less because the new supply is not much, while the old supply has "passed" and many other investors have raised the price, causing new investors to "falter". Notably, from mid-April, the market began to appear with ads to cut losses.
“Loads of land fronting on main roads with busy business in Nui Deo town were for sale last month at 90-100 million VND/m², but now some sellers have reduced it to 60-70 million VND/m².
Land on Thuy Son street, at its peak, was advertised for sale at 120 million VND/m², but now brokers report that only if the customer is willing, the landowner is willing to reduce it to 80 million VND/m².
Some land plots in Duong Quan from 40-42 million VND/m² now have many owners only offering 30-35 million VND/m². Land in Gia Minh and Gia Duc communes also "returned" to 6-8 million VND/m² but there were very few transactions...", Mr. Nien said.
Along with the above comments, Mr. Do Khuyen, Thuy Nguyen Real Estate Transaction Office analyzed that the market has cooled down. Besides capital market investors who continue to maintain prices with the mentality of waiting for the right time, investors with the purpose of surfing and most of the capital from credit sources are standing still.
Therefore, they were forced to sell at a loss. According to Mr. Khuyen, in the long term this wave of cutting losses and running away will be stronger. At the present time, inexperienced investors are still looking forward, hoping for a new wave to help the market get hot again. But this is very unlikely to happen after such a period of unusually hot market growth.
According to the assessment of real estate experts, the real estate market is in a difficult period because of tightening policy mechanisms, credit and the partial impact of the epidemic. Therefore, some investors who do not grow capital or use financial leverage will be forced to "release" their goods.
In particular, in the face of land fever in many places, on May 7, 2021, the People's Committee of Hai Phong City issued Directive No. 13/CT-UBND on strengthening state management of land and land prices in Hai Phong city, advising people to be wary of false rumors, creating waves causing "land fever" to profit and control activities. buying and selling activities against the law. With the involvement of the local government, according to an official of the Department of Natural Resources and Environment of Thuy Nguyen district, land prices in the second quarter will be controlled and will not increase compared to the first quarter.
Even in some areas, price reductions and loss cuts will appear. "Land is still the product that investors are most interested in in localities. However, after a hot period, speculators will leave the market, causing investment demand to decrease sharply in the second quarter", this official affirmed.
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