Can Tho caught up in the hype storm of real estate price

Recently in the Mekong Delta city of Can Tho, people’s demand for purchasing land for housing projects and townhouses is very high. Prices continue to escalate not only in urban zones and the city center but also in outskirt areas.

People researching land prices in Can Tho

People researching land prices in Can Tho

Skyrocketing prices

These days, social networks are littered with posts promoting real estate, from urban land to farmland. Real estate agents constantly try to close sales land projects or townhouses, sprinkling in bits of info about how prices are predicted to rise rapidly to talk customers into purchasing the assets.

In Ninh Kieu District, noteworthy projects that are being actively advertised include Hung Loi Villas, with an average price of VND29 million per square meter (US$1,246); or Eco Villas Con Khuong in Cai Khe Ward at about VND19 – 25 million per square meter ($816 - $1,073) depending on locations.

In the urban zones of An Khanh and An Binh wards, land prices range from VND2 - 4 billion ($85.9 -171.9) per lot. In the Southern part of town, prices also skyrocketed to VND1.5 - 3 billion ($64.3 - $128.7) per lot.

A street-front land lot in this area would cost over VND2.5 billion ($107.3), not including house-building expenses. This amount is a real challenge for working class people in Can Tho.

Ms. Le Thi Hoang, a land dealer in Cai Rang District commented that one plausible solution for middle class people is to buy land in the outskirts, about 7 - 15km from the city, where land prices range from VND2-3 million (USD$85.9 - $128.7) per square meter. However, most of the land lots here are for cultivation, and not many residential lots are available.

Rising land prices: actual demands or mere hype?

Can Tho city’s government are advising people to go to local authorities and ask carefully about land location and related construction projects before buying real estate in order not to fall for promotional traps.
In the face of real estate fluctuations in Can Tho, Mr. Le Phuong Dong, Head of Representative Office of Mekong Delta Real Estate Brokerage Association, Chairman of KC Real Estate Brokerage Association said: “Can Tho is the center of the Mekong Delta region, where there are many universities, hospitals, or shopping centers, which would attract a large number of people, resulting in high housing demands”.

He added that in reality, the hype surrouding real estate trading in Can Tho is not a result of mindless investments or extensive publicity, but rather authentic demand for housing.

Recently in Can Tho, however, there are not many new real estate projects, and the lack of diversity in housing segments makes it difficult for people to decide based on their income.

Mr. Nguyen Thai Bao, head of Ninh Kieu District's Urban Management Department, said that in response to the public’s demand, the district’s officials are now adjusting land exploitation plans accordingly, accelerating the conversion of agricultural land to residential land under the planning scheme, and urging investors to develop new urban areas in many parts of the district to meet the people’s housing needs.

Mr. Nguyen Hong Ha, Head of Urban Management Department in Binh Thuy District, Can Tho said: “Up to this point, there are 6 urban zones in Ninh Kieu District, with about 3,000 houses built by civillians. At the same time, investors are building 5 more new urban zones with an area of over 140ha, and calling for investment in 9 modern urban zones along Vo Van Kiet road with a total area of about 600ha. It is expected that in the near future, Binh Thuy district will construct about 10,000 houses with ranging diversities, catering to the people’s every need”.

By Huynh Loi – Translated by Tan Nghia

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