Government frets over surging land prices across the country

By Gia Chinh, Duc Minh   March 31, 2021 | 06:59 pm PT
Government frets over surging land prices across the country
Apartment and office buildings in Hanoi. Photo by VnExpress/Giang Huy.
The government is seeking to contain the rise in land prices in many localities allegedly caused by speculators spreading rumors about development plans.

The Ministry of Natural Resources and Environment has ordered the General Department of Land Administration with examining land management procedures, including the handing over and leasing of land, in 26 localities for misconducts.

The Ministry of Construction has urged local administrations to publicize background information and the progress of housing and infrastructure projects to prevent the spread of rumors.

In the first two months of this year prices in some areas have risen by 10 percent.

There are signs of speculation in places like Hanoi, Ha Long Town and Bac Ninh Province.

Speculators have spread baseless rumors about government development plans in these areas and even created false documents to back up their claims, according to the Vietnam Real Estate Brokerage Association.

There has also been illegal selling of forest and farming lands.

Experts said there are several other factors behind the price rise, including a shortage of land due to delays in issuing licenses.

Falling bank deposit interest rates due to the Covid-19 pandemic has also caused investors to look for other asset classes to put their money in, including real estate.

The rising land prices threaten to increase the cost of public projects, worrying the government.

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