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Land prices in suburbs expected to rise

Update: March, 01/2014 - 09:01
Land price in the capital city's suburban areas is expected to rise this year. — Photo vietnamnet

HA NOI (VNS)— Land in suburban areas in the capital's communes, such as Co Nhue and Phu Dien in Tu Liem District, Thach Ban in Long Bien District, have shown positive signs and remain attractive.

"Land prices in the areas have not fallen much, as people were waiting for a price hike," said Pham Thanh Hung, deputy general director of CEN group.

Hung added that land prices in the suburbs were not significantly higher than social housing projects. Therefore, home buyers would opt for purchasing land.

Surveys showed that land prices in suburban areas were slightly reduced, compared to the "hot" development period in the property market. For example, land prices in North Tu Liem had been selling for VND25-28 million per square metre, while one year ago it was VND30 million.

Prices in Co Nhue and Phu Dien have been selling at VND25-30 million per sq.m. However, the number of transactions remains limited.

Nguyen Thi Tam in Long Bien District's Thach Ban Commune offered her 90sq.m land for sale one year ago.

Tam said she has not sold the land yet, though she had to lower the selling price from VND27 million to VND16 million per sq.m.

Meanwhile, a report from Savills Viet Nam indicated that in the third quarter last year, selling prices in suburban areas were still at their highest level, at VND48 million per sq.m, in Ha Dong District.

Also, the market remained quiet in the last quarter of 2013. However, selling prices were reduced one per cent against the previous quarter.

Hung expected that the recently enacted policies would open up sales in the land segment.

According to Decree 11/2013/ND-CP and joint circular No 20 between the Construction Ministry and Ministry of Justice, property investors will be allowed to sell land without houses provided as infrastructure beginning January 5, 2014.

Home buyers are expected to seek such land, as they might save up to 30 per cent of building costs if they build their own homes.

In addition, they would have the opportunity to design their own houses.

Several urban housing projects have asked to be allowed to offer this new form of selling, since home buyers have been seeking land, instead of less expensive apartments. — VNS

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