Business

Land prices skyrocket in Can Tho City

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High land prices and active real estate market in the Mekong Delta city of Can Tho show that the area is considered a gold mine to investors.  Problems have arisen, however, with the widespread dispersion of land plots, especially agricultural land, leading to unauthorized constructions and difficulty in management.

Multiple housing projects are being constructed to accommodate buyers’ needs

Multiple housing projects are being constructed to accommodate buyers’ needs

Land prices upped 150-200%

In An Khanh, An Binh and Hung Loi wards, 80 - 100m² land lots can cost around VND2-3.5 billion (about US$86,000-150,000). Meanwhile, around Bung Xang lake (An Khanh ward), expansion of the road surface has pushed prices up to a whopping VND7-9 billion (about US$ 301,000-388,000) for a 100m² lot. Construction of Quang Trung 2 Bridge and extension of both Tran Hoang Na Bridge and Trung Luong - Can Tho Expressway have also inflated prices in Southern areas of the city.

Can Tho’s Department of Construction believed that the soaring real estate price is due to the city’s development of transport infrastructures to connect with Ho Chi Minh City and adjacent regions, thus attracting significant investment. Besides, a lot of well-off people from neighboring provinces tend to buy real estate in the city center because Can Tho lies in the middle of the Mekong Delta, with favorable conditions for economic trades and travel.

Dynamic development in infrastructure played a large part in pushing the real estate market to such height, said the authorities. Housing prices in inner parts of the city have increased by 150% - 200% in the past 2 years.

The high transaction volume implies a huge demand for housing and residential land. On the other hand, the low number of few urban projects and land lots has no doubt caused the pressing needs for real estate currently observed.

New projects swiftly being built

Currently, there are 66 new residential projects, resettlement areas and urban areas in Can Tho, of which 24 have been handed over to the Department of Construction for management and 42 are being implemented.

According to the housing development program for the 2018-2020 period and vision until 2030, the People’s Committee of Can Tho City has approved the construction of up to 25 new urban areas and resettlement areas covering about 1,440 ha. Experts stated that these new projects will hopefully ease the craze for land and create more opportunities for people looking to buy houses.

Along with the development of new urban areas, city officials also strive to contain unauthorized construction as well as unapproved settlement areas, said Mr. Huynh Van Sau, Deputy Director of Can Tho City Construction Department.

He also added that the Department of Construction is waiting for the People’s Committee to approve of a state-funded housing project to resolve housing needs for people with low income.

There have been several delayed housing projects that are slowing down Can Tho’s urban development. The Department of Construction has proposed to apprehend some of these projects while prohibiting their investors from establishing new projects.

By Huynh Loi - Translated by Tan Nghia

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