Nhat Tan Village famous for its cherry blossom cultivation
The prices of a standard plot of agricultural land which is around 360 square metres in the north used to be VND60m (USD2,600) to VND80m along the Red River a decade ago. Three years ago, the prices increased slightly to VND100m-VND120m but there was no clear planning. Now the prices have increased by five to 15 times.
A local farmer said his land price has increased by nine-fold to VND1.5m (USD65) per square metre even though it is located deep in an alleyway. The lands that are near the main road have a price of VND5m per square metre.
However, only a few amounts of the lands have rental taxes paid and legal papers. Those lands are not allowed to be traded so most of the sales have not been recognised by the authorities.
The Red River Zoning Plan will affect 11,000ha of land from Hong Ha Bridge to Me So Bridge, spanning across 55 wards and communes in 13 districts in Hanoi. The directives for the plan are giving priority to flood prevention and green spaces. The areas along the Red River will not become a dense urban area.
Luu Quang Huy, head of the Hanoi Urban Planning Institute, said to VnExpress that this area will be set aside for green space.
According to the experts, the brokers are trying to inflate land prices along the Red River. This is not the first time brokers have deliberately created false demand.
The Vietnam Association of Realtors has asked local authorities to take measures to curb the problem as many people are being tricked by the brokers.
