>> Hanoi Master Plan ‘bad news’ to numerous projects

>> Administrative centre to remain in central Hanoi

Many investors are trying to sell off their land assets in Ba Vi District of Hanoi after the Capital City Master Plan was officially announced.

For sale

The plan, which is a broad vision for city planning for the period between 2030 and 2050, places the national administrative centres in Ba Dinh District, and not in Ba Vi.

During the time the Master Plan was being created, it was rumoured that Ba Vi was to be the administrative centre for the country. At that time land prices in the area increased sharply on this speculation.

Now that the actual plan has been announced, however, there are "for sale" signs all along the roads running through Yen Bai Commune, located in the district. A large number of empty plots, usually surrounded by walls, can be seen in the district. Locals say that nobody is interested in buying them anymore.

Mrs. Tran of Vinh Phuc Province spent over VND3 billion (USD144,230) on buying 360 hectares of land in Ba Vi District last year. Half of this money she borrowed from banks, friends and relatives.

A slowing real estate market along with high interest rates have forced her to sell. However, she has not been able to find a potential buyer in the last two months.

She said that she was ready to sell the land, even at a loss of hundreds of millions of VND because she owed about VND100 million (USD4,800) in interest. There are many others in the same situation as Mrs. Tran.

Hoang Thanh Ky, Vice Chairman of Yen Bai Commune People’s Committee said, “Over the past three months, land transactions have sharply decreased. Land prices, on the other hand, have stayed almost unchanged after the Hanoi Master Plan was approved."

A large number of real estate offices have either closed, or are considering shutting their doors because of the situation.

Property owners who are not in urgent need of cash still refuse to budge on selling prices.

In many areas of the district, land prices have even increased. One particular 800-square metre plot is priced at VND640 million (USD30,769). The price is three times higher than last year.

There is also a large disparity between the prices of land with ownership certificates and those without. One piece of land without a certificate is currently priced at VND1.5 million (USD72) per square metre, while another plot, with a certificate, has been marked with an asking price of VND2-3 million (USD96-USD144) per square metre.

Empty plots

A 250-square metre plot offered for VND3 million (USD144) per square metre