Speculation pushes land prices skyrocket in Con Dao
Updated at Tuesday, 15 May 2018, 06:13
The Hanoitimes - Land prices in the Con Dao Island of the southern province of Ba Ria-Vung Tau have skyrocketed in the past few months as speculators are looking for land for tourism services on the popular tourist destination.
Many people from Ho Chi Minh City and Hanoi are pouring money in tourism services on the island, pushing up prices every day. Land prices on mountain roads, mostly agricultural land, have increased six or seven times from VND1-2 million per square meter, depending on location,” he added.
On the main roads such as Tran Phu, Pham Van Dong and Nguyen Hue, land prices have soared to VND50-70 million per square meter, with no signs of stopping.
Land prices in the Con Dao Island soar to VND50-70 million per square meter
According to Con Dao Land Registration Office, nearly 100 land transfer transactions have been recorded in the first three months, a sharp increase compared to before.
Better connections by air and boat between the mainland and the island had resulted in an increasing number of tourists, Nguyen Anh Nhut, vice chairman of Con Dao Island District People’s Committee, said, adding that on average, some 2,000 visitors come to the island per day.
Seeing the potential, many investors have rushed to buy land to build restaurants, hotels and resorts, but the land fund is limited. That has led to the present land rush and rising prices, he said.
“The highest selling price recorded was VNDĐ40 million per square meter, but in reality the price was much higher,” he added.
Nhut said that Con Dao Island District People’s Committee has already suspended issuance of licenses to build new restaurants and hotels on the island.
“The district authorities will strictly manage the planning and land regulations to prevent illegal transfer and construction. But we cannot prohibit people from selling land or stop investors from developing legal construction projects,” he said.
Lack of long-term tourism planning is the main cause for the massive development of the sector, a phenomenon that has occurred in many other areas in the country, experts have warned.
Con Dao Island, a former penal colony, consists of 15 islands and islets. It has become one of the country’s most popular attractions because of natural beauty. The island is 45 minutes by flight from Ho Chi Minh City. Tourists can also visit the island by boat from Vung Tau City, which takes about 12 hours.
Authorities in some other islands in the country such as Phu Quoc Island in Kien Giang Province, Van Don Island in Quang Ninh Province and the Van Phong Bay in Khanh Hoa Province have been also struggling to control surging land prices in recent months as speculators have also flocked to the areas, which are slated to become the nation’s special administrative-economic zones (SEZs).
According to the report of the Van Don District People’s Committee, from the beginning of this year, the district has completed more than 1,000 transfers of land use rights, mainly in Ha Long, Dong Xa, Doan Ket and Dai Xuyen communes. Surveys showed that the prices of land traded rose five to 10 times, depending on the area, as people anticipate the bright economic future of the area.
The zones’ authorities recently had to decide to suspend the land use conversions and land transfers in the zones until a new SEZ law is passed due in October this year as illegal construction and land trading in the SEZs has reportedly surged sharply for recent months, causing land management in the areas more complicated with high ratios of land speculation and drastic land price hike.