Garden, farmland attract more investors

Garden and agricultural land attract buyers because of the anticipated profits during “land fever” periods.

After half a year of hot land prices, the Ba Vi property market has cooled since the pre-Tet days. However, a broker said the market remains very attractive with a wide range of products.

He said that most investors want to buy land with a large area of ​​more than 1,000 m² containing both residential land and land for growing perennial crops.

He introduced potential buyers to a 1,700 m² plot of land in the town of Cam Linh. The land, offered at VND 4.8 billion, includes 300 m² of residential land while the rest is perennial crop land with land use rights until 2063.

“Large plots that combine both residential soil and garden soil are cheap and can be used for many purposes, so they are preferred by investors. After the purchase, they can divide the plots into smaller plots to sell,” the broker said, adding that this type of transaction accounted for 80% of his transactions in 2021.

The same situation can be observed in the suburbs of Hanoi, such as Thach That and Soc Son. Land located in areas away from the center where infrastructure is underdeveloped has turned into hot commodities.

In the Central Highlands, gardens and fields are also favored by investors, especially surfers, who buy to resell at a profit, thanks to strong liquidity.

At the end of December 2021, a 1,200 m² plot in the town of Gia Nghia in DakLak, sold for 950 million VND. Just two weeks later, the land was sold again, but for 1.1 billion VND.

Analysts say land fever in suburban areas has been rampant for many years, but the market has been particularly hot in the past two years when new trends emerged during the pandemic.

Batdongsan.com.vn in mid-2021 said workers leaving for the countryside during the pandemic had sparked interest in gardens, agriculture and resort land.

The trend grew throughout 2020 before coming to a halt in late 2020 and early 2021, when ground fever in many regions spiraled out of control. But in May 2021, when Covid came back in full force, the trend resurfaced. Land in the suburbs of Hanoi, such as Van Canh, Ba Vi, Hoa Lac, Soc Son, Quoc Oai, Son Tay and Xuan Mai, are in high demand. Prices have sometimes increased by 2-7% in 1-2 months.

High expectations also create a busy market. In BaVi, for example, land prices have increased due to news about the Ba Vi – Suoi Hai National Tourist Area program.

“When land use is scheduled, infrastructure will expand, and then land prices will rise. More tourist and resort complexes and service areas will appear, leading to greater demand for land,” said a broker.

Many investors end up making high profits, but many others fail when they pour money into farmland and gardens.

In principle, to make a profit, investors must buy land early when land use programming has not been announced. However, in many cases, the lineup is not released as expected or the lineup is proceeding very slowly.

Another risk is that it takes time and effort to change land use objectives from a garden to a residential plot. This requires investors to have huge capital to avoid capital shortages while waiting for procedures to be completed.

The greatest risk is when land is taken over by the state for the development of projects. If this happens, landowners only receive compensation for agricultural land.

Therefore, according to experts, in order to minimize risks when pouring money into agricultural land, investors should know whether the garden can be turned into residential land, and if so, they should research information on the costs and the procedures they must follow. .

Lam Tung

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