The boost in sales and the slowdown of the land bank expansion are expected to help  land and house prices decrease in the remaining quarters of 2022, according to VNDirect Research.

People who rushed to buy real estate during the latest land fever have left the market as prices have decreased.

Since doi moi (renovation) in 1986, the Vietnamese real estate market has witnessed many ups and downs, including four “price fevers” so far.

Real estate prices in transactions rose in the first three months of the year, according to the Ministry of Construction (MOC).

Many speculators in Vietnam have recently rushed to buy land lots in seemingly potential areas, in hope of earning big money.

Some localities have not strictly followed procedures when auctioning land.

The Ministry of Construction said that it plans to set strict regulations to tighten control over real estate brokers. There are about 300,000 brokers in Vietnam.

When people lack information about planning and land use plans, especially projects under survey or preparation phases, it is easy for land brokers or traders to blow up land prices to seek profit. 

In 2021, Lam Dong provincial authorities asked the Nam Da Lat Urban Area project developer to pay compensation of VND19 billion for 257 hectares of forestland.

Land fever has attacked not only large cities but also rural areas, leaving young people without hope of buying a house.

The real estate market is predicted to recover and develop healthily in 2022 after experiencing a year of upheavals in 2021.

Many real estate brokers lack professional knowledge and ethics and do ‘hit and run’ business, causing losses to customers by giving wrong advice or even cornering the market and causing artificial land fever.

Land prices recently soared by VND30-50 million per square meter in some places, but the number of successful transactions was modest.

The real estate market has begun cooling down after a long hot spell.

Realtors typically seek profits by developing the investment value of land, rather than by increasing land prices.

The Ministry of Natural Resources and Environment has told local authorities to inventory land and report on land use. 

A “land fever” is spreading throughout the country, from the North to the South, from the lowlands to the mountains. Everywhere, the price for land of all kinds, from housing to industrial to farming land is increasing.

The Da Nang Department of Natural Resources and Environment has warned that the tricks of several property speculators could drive up land prices in the central city after recent announcements of adjusted master planning.

The Ministry of Construction (MoC) and the Ministry of Natural Resources and Environment (MONRE) have requested provinces and cities review State management on land prices amid 'land fever' in some localities.