Real estate market fluctuates after conversion of farm land

There will be a fluctuation in real estate market after conversion of 26,000 hectares of agricultural land into residential or industrial land in Ho Chi Minh City, said Deputy Chairman of Binh Chanh People’s Committee Nguyen Van Hong in an exchange with Sai Gon Giai Phong reporter.

A corner of BInh Hung Commune of Binh Chanh District (photo: SGGP)

A corner of BInh Hung Commune of Binh Chanh District (photo: SGGP)

The Prime Minister has approved the conversion of 26,000 hectare agricultural land into urban, residential or industrial land, nearly 7,000 hectares of farm land in Binh Chanh District will be converted into non-agricultural land.
Hong asserted the fluctuation of land price after the conversion; however, the local administration will have measures to prevent deals on land resulting in skyrocketing price or creating a new wave of “land fever” which can lead to property bubble as well as badly affects other housing projects in the city.
As per the government’s plan, from now to 2020, Binh Chanh district will have 6,000 hectares of farm land and by 2025, the district will merely have 350 hectares of agricultural land in Tan Nhut Communes for food security program.
The policy to convert agricultural land into non-agricultural uses for production purpose or the socioeconomic demand will help Binh Chanh District grow more. On the other hand, conversion of farm land into non-agricultural uses will facilitate residents’ resettlement in urban area, said Hong.
He added the district is implementing several projects; accordingly, the conversion will facilitate compensation task.
He expected income of inhabitant the district will be better after the conversion. Moreover, the policy will benefit the local government in handling illicit housing construction as the district population has increased 50,000 people which is a big pressure in management.

By LUONG THIEN – Translated by UYEN PHUONG

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