The appreciation in land prices seen in HCM City in recent time is spreading to its adjoining provinces, according to traders and agents.– Photo zing.vn

HCM CITY – The appreciation in land prices seen in HCM City in recent time is spreading to its adjoining provinces, according to traders and agents.

Biên Hoà city, Long Thành and Nhơn Trạch in Đồng Nai Province are seeing prices surge as are places in Bình Dương and Long An Provinces.

Thuý Diễm, a broker in HCM City’s District 7, told Việt Nam News that prices in border areas between Long An and HCM City have risen sharply.

“They have gone up by 30-40 per cent since the end of last year, and will continue to rise.”

She thought the prices are increasing because housing projects are being developed there.

“Many projects have been developed and many HCM City residents have moved to live there. That is what is pushing land prices up here.”

Land prices in Nhơn Trạch are also up by 40 per cent.

Online newspaper vnexpress.net reported that land prices in Cần Giuộc and Cần Đước districts of Long An Province have increased by 30 per cent.

From VNĐ5.5-7 million in 2016, prices have now risen to VNĐ10-14 million (US$438-614), it said.

In Nhơn Trạch District of Đồng Nai Province, prices are up 60-100 per cent, it said.

In Bình Dương Province, prices in Lái Thiêu Town bordering HCM City’s District 12 have jumped to VNĐ23 million ($1,000) per square metre from VNĐ18 million ($789) five months ago.

Huỳnh Phước Nghĩa of the HCM City University of Economics is quoted in the report as saying the land price hikes have spread to a radius of 25-50km.

In the last one year prices in Đồng Nai, Long An, Bình Dương have surged, but even in more distant places like Bình Phước, Lâm Đồng and Phú Yên prices are rising.

He attributed it to the development of infrastructure.

"Many infrastructure works have been completed in Nhơn Trạch, Biên Hoà, and Long An making the higher prices acceptable," he said.

But experts are sounding a warning that buyers should be careful since speculators could be manipulating prices.

There are cabals of brokers who specialise in manipulating land prices, they said.

Land prices cannot be predicted and do not follow any rules, and so buyers should be careful, Nghĩa said. VNS