The news that the land price surged after the provincial merger has caused a clear change in the real estate market. In today’s article, Tuong Phat Land will update the latest information on the current situation, causes, impacts and solutions. Follow Tuong Phat Land’s article so you don’t miss any important content!
1. The truth behind the story of the land price surged after the provincial merger
The Ministry of Construction has updated information on land prices as the real estate market fluctuates greatly in the first quarter of 2025. The fluctuations are particularly strong in land and housing transactions, especially in areas with many projects that need to re-issue pink books such as Ho Chi Minh City. According to this source, land prices in bustling areas such as Nhon Trach in Dong Nai province have increased by 20-30%, even 40% in some locations compared to the same period in 2024.
For housing transactions alone, the number of transactions has reached 33,600, an increase of about 32% compared to the previous quarter. These figures show that the land price surged after the provincial merger is actually happening. However, this issue is not necessarily a positive sign.
In a recent meeting with ministries and sectors, Deputy Prime Minister Tran Hong Ha pointed out the worrying fact that the price increase rate of Vietnam’s real estate models is among the highest in the world, but people’s ability to access housing is decreasing. The Deputy Prime Minister also emphasized that units need to step up research on tax issues for land and projects that are still slow to implement.
2. Why do land prices fluctuate after each administrative boundary merger?
In recent days, we have received information about provinces merging together and many changes in administrative units. At the same time, a phenomenon that also appears after each change is the strong fluctuations in real estate prices. So, what is the cause of this phenomenon?
2.1. FOMO psychology
FOMO stands for Fear of Missing Out. When news of the provincial merger broke, many investors rushed into real estate, hoping that land prices would rise rapidly. It was this crowd psychology and the massive participation of small investors in the market that caused the land price to surge after the provincial merger.
2.2. Too high expectations for infrastructure development
One of the biggest reasons that contributed to the land price surge after the provincial merger was the expectation of real estate buyers on the development of regional infrastructure. When the area is upgraded, buyers will hope that transportation, public utilities, urban areas, etc. will be significantly improved, thereby increasing the value of land. However, this is a rather vague expectation because infrastructure is not always upgraded synchronously.
2.3. Impact of the real estate brokerage community
Real estate brokers, also known as land brokers, are intermediaries that make real estate transactions happen. Because they are the ones who understand the market best, dishonest brokers can easily inflate land prices by spreading false rumors and leading to false price increases. If you do not have a strong mentality, you will easily be caught up in this feeling of land scarcity.
3. Is Ho Chi Minh City real estate affected by the information about province merger?
It can be said that the land price surged after the provincial merger, the real estate market of Ho Chi Minh City is facing both opportunities and challenges:
- Direct impact on the city’s real estate: Districts located in the suburbs such as District 9 (Thu Duc), District 12, Binh Chanh, Tan Phu, Nha Be District 12, Binh Chanh, Tan Phu, Nha Be,… have recorded an increase in land prices, townhouse prices and apartment prices. When the information about the provincial merger spread, many investors searched for unexploited land in this area.
- Impact on real estate projects: Some projects in central districts may benefit from the completion of infrastructure such as the construction of a pedestrian bridge across the Saigon River and the development of the metro line. Potential districts, especially land in upgraded areas, will certainly witness a significant increase in price, creating opportunities for real estate investors.
- Risks and opportunities: The land price surged after the provincial merger is an opportunity to make easy profits with potential projects. However, this is also a risk if you do not have enough experience or do not understand the market trends. Remember, the land price surged after the provincial merger may create a “bubble” if there is no control from many parties.
4. Some directions for a more stable real estate market
To address the risks of the land price surged after the provincial merger, the Ministry of Construction will coordinate with other ministries and sectors to build and develop a model of a real estate transaction center and land use rights managed by the State. This is a model that can increase transparency in real estate transactions. We can expect that timely actions by agencies will help the market to be adjusted in a positive direction.
For people with housing needs and real estate investors, you must make the right investment decisions. When the authorities act promptly and people join hands to make the right efforts, the land price surged after the provincial merger will no longer be a headache.
In short, the phenomenon of the land price surged after the provincial merger is not uncommon. However, we all cannot just rely on the activities of the authorities but need to look at the problem correctly to invest in real estate more intelligently. Tuong Phat Land will continue to update related information. Please continue to follow Tuong Phat Land’s main website!
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