Business
Provinces ban land speculation
  • | vns | May 19, 2018 03:24 PM
After land prices, and, along with them, instances of violation of land laws, surged in certain places, the provinces involved have temporarily banned land transactions pending the approval of new regulations, helping cool off the market.

  

A plot of land for sale in Phú Quốc 

Last month Prime Minister Nguyễn Xuân Phúc instructed related authorities to tackle land-use rights violations and speculation on Phú Quốc Island, Bắc Vân Phong in Khánh Hoà Province and Vân Đồn in Quảng Ninh Province.

They are slated to become special administrative zones if approved by the National Assembly at a session next October.

The designation would allow them to offer incentives to investors, meaning land speculators have been targeting land plots there.

In respond to the PM’s request, Phạm Vũ Hồng, chairman of Kiên Giang Province People’s Committee – home to Phú Quốc -- has instructed departments to stop subdividing and repurposing land on the island this week.

Earlier the Phú Quốc People’s Committee had petitioned the Natural Resources and Environment Office to put a stop to all subdivision of land plots.

The province People’s Committee had admitted it was becoming difficult to control violations of land-use regulations on Phú Quốc.

The island has seen an increase in the illegal appropriation of unplanned lands, subdivision of lands without approval, illegal construction, and speculators buying up lands.

A river in Dương Đông town was reduced from 20 metres in width to four metres after people slowly encroached land in it.

The prices of certain lands which have been divided into lots have quadrupled in the last year to VNĐ1 billion now. Yet, every day hundreds of transactions are recorded at notary offices on the island.

The violations and speculation have made things hard for land administration authorities and affected the development of the property market.

Vân Đồn and Bắc Vân Phong are in exactly the same situation.

In the last four months there have been 2,400 property transactions in Khánh Hoà’s Vạn Ninh District where the Bắc Vân Phong special administrative economic zone will come up.

In Vân Đồn District in Quảng Ninh, some land plots have seen prices go up five to seven times since last year.

Authorities begin crack-down

Quảng Ninh Province has temporarily stopped all land-related activities including sales in Vân Đồn except for special cases.

This has come in for sharp criticism, with experts saying this could have a devastating effect on the district property market.

Khánh Hoà has only banned the repurposing, sale and subdivision of agricultural and forest lands.

A property expert in Quảng Ninh said as prices and the number of transactions skyrocket, authorities are keeping a closer eye and uncovering many cases of fraud.

Văn Dũng Chinh of the Vina Real Group’s board said stopping the repurposing and sales of lands in the special economic zones is necessary to stop the price surge seen in the last few months.

The provinces’decisions have helped cool off the market.

In Vân Đồn for instance, prices have fallen by VNĐ2 million a metre in some places.

At the Vạn Ninh District land registration office, the number of customers queuing up for land in Bắc Vân Phong has decreased by half.

Notary offices in Phú Quốc are also seeing fewer transactions, with the number declining to around 100 a day from hundreds earlier.

However, the Gành Dầu Commune People’s Committee said in certain places land prices are still increasing since people are trading illegally.

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