Vung Tau land prices soar following airport project
In early 2019, when the provincial authorities announced the transport masterplan to 2030 including the Loc An-Ho Tran airport, land prices changed drastically when brokers and investors flocked to the area. The price of each hectare of land increased from VND500-700m (USD21,400-30,000) to VND1.5-2bn.
To Thi Hong Thao, chairwoman of Lang Dai Commune, Dat Do District, said the exact location of the airport hadn't even been announced at that time but lots of farmers had already put up their land for sale. In the first months of 2019, Dat Do District recorded over 2,000 land transaction cases which included 900 land transfer cases.
A similar situation occurred when the airport project in Go Gang was announced. According to a landowner, he has a 700m2 of land by the street and will sell for VND1.9bn (USD81,400). Another 12,000-square-metre land will be sold for over VND6bn.
Hoang Kim Hoai, director of Phuc Dien Land Company, said the real estate market bloomed recently due to various infrastructure projects. In early 2020, investors flocked to Binh Ba Commune, Chau Duc Province, in one week just because a major company came to conduct a field survey for two projects that cover over 800ha. The land prices tripled. However, after the broker left, prices also decreased.
Lecturer Le Ba Chi Nhan from the University of Economics, Ho Chi Minh City, said there were many risks with land investment amid rumours about new urban areas or infrastructure projects. For example, Nhon Trach Urban Project in Dong Nai City hasn't been completed even though the project was approved 20 years ago.
It is common for the brokers to take advantages of the new projects to push land prices up.