HCM CITY – The HCM City People’s Committee has asked agencies to strictly punish real estate brokers and land owners who spread rumours about possible construction or major property projects near their land lots.

The city’s Department of Construction said the price of land lots in the city’s eastern and western areas, such as 9, 12 and, Bình Chánh districts, have soared because of these rumours.

On gachvang.com, a website that assesses land value, prices in Vĩnh Lộc A commune in Bình Chánh District rose from VNĐ13 million (US$557) per sq m in March to VNĐ15.4 million ($660) in June, an increase of 18.5 per cent compared to the same period last year.

Land prices in District 12 are also rising, from VNĐ42-43 million ($1,800-1,844) per sq m, while one year ago, the prices were only VNĐ21-23 million ($900-986).

In District 9, one of the "land fever” hotspots, prices are climbing daily because of information about the new Eastern Coach station and Oncology Hospital.

Construction on fhe coach station is expected to begin this year, while the hospital is scheduled for use next year.

Nguyễn Văn Thành, a land broker in the district, said: “Land prices in the area have risen 10-20 per cent compared to the beginning of this year.”

Prices on Hoàng Hữu Nam Street, close to the new hospital, have increased from VNĐ35 million ($1,500) to VNĐ40 million ($1,715) per square metre.

Spikes in land prices have been seen at least three times this year, according to the Registration Office for Land Use Rights under the city’s Natural Resources and Environment Department.

Rising prices are expected to continue because of people’s habit of buying property before Tết (Lunar New Year).  – VNS