Land application files surged dramatically ahead of the news of provincial consolidation.

In Ngu Hanh Son District (Da Nang), bordering Quang Nam, the number of land application files doubled following the announcement of the policy to 'come under one roof.'

On the morning of April 9, the one-stop shop at the People's Committee of Ngu Hanh Son was crowded with people handling land-related procedures. Many residents reported arriving early and had to take numbers to wait. By around 10 AM, more than 150 people had taken numbers, but only about 30 files had been processed.

Mrs. Bảy, 45 years old, a resident of Sơn Trà District, mentioned that she was transferring the title of a newly purchased land parcel. 'The interest rates on bank deposits are not high, so I decided to withdraw my savings to buy a 100 m² land lot on a 5.5 m road in Hòa Quý Ward, Ngu Hanh Son District for over 3 billion VND. I bought it a few days ago, but someone has already offered me over 170 million VND more than what I paid, but I'm not selling,' she said.

Residents flock to handle administrative procedures related to land in Ngu Hanh Son have increased significantly in recent days. Photo: Nguyen Dong

According to Mrs. Bay, land prices in the Ngũ Hành Sơn area, adjacent to Dien Ban Town (Quang Nam), have been rising rapidly lately after the announcement of the planned merger of the two localities. 'I bought the land for my children because this area is close to the beach, near resort projects, and the FPT concentrated IT zone,' she stated.

Accompanying her to complete the transfer of the land use rights certificate for a newly purchased plot, Mrs. Hồ Thị Huyền, a resident of Ngu Hanh Son District, mentioned that seeing the land prices in her living area increase, she decided to buy more. Due to the overwhelming number of people filing land-related procedures, she had to leave the previous day and returned early this morning hoping to complete her paperwork.

A man from Hanoi waited nearly until 11 AM to be called in to process the transfer of a land parcel purchased near An Thuong Street (My An Ward, Ngu Hanh Son District). He explained that since his daughter was transferring to work in Da Nang, he and his wife, who are approaching retirement age, decided to 'migrate' to Da Nang for a more comfortable retirement.

'I bought it for living, not as an investment, so I’m not too concerned about whether real estate prices will rise or not. However, Da Nang, with its beautiful beaches, growing tourism, and flourishing economy, will attract many people to live and do business here in the future,' he said.

According to reports, many individuals processing their files have sought the assistance of brokers, resulting in increased numbers of people visiting the one-stop shop in Ngu Hanh Son District. Photo: Nguyen Dong

Mr. Nguyen Van Hoang, an employee of Tung Long Real Estate Company, stated that in recent days, he has received many requests for help from clients in Hanoi, various northern provinces, and Quảng Nam to complete their land procedures. 'The high number of buyers, combined with limited supply, has led to rapid land price increases,' Mr. Hoang explained.

He noted that previously, it was mainly residents from outside Hanoi who came to invest, but now many people from Quang Nam are also coming to Da Nang to buy property, in case the merger requires them to transfer work. Consequently, real estate transactions are also increasing in Cẩm Lệ District and Hoa Vang District (southern Da Nang). Since the beginning of the year, real estate prices in Ngu Hanh Son and Cam Le have risen by an average of over 10%.

This real estate agent mentioned that there are many segments in the Da Nang real estate market. For instance, a 100 m² plot on a 7.5 m road in the VIP Hoa Xuan area is priced from 6 to 6.5 billion VND; in the area south of the Nguyen Tri Phuong bridge, it costs around 4.4 billion VND; and prices decrease the further away from the center one goes. 'In the FPT urban area, only larger lots, with a width of over 10.5 m, remain, priced above 20 billion VND,' Hoang added.

Meanwhile, about half of the people waiting in line were there to carry out procedures for land subdivision or updating property associated with the land. Despite the large number of people, there was no pushing or noise. Mr. Thành, a resident of Ngu Hanh Son, expressed concerns that if the district is dissolved and merged with Quang Nam, processing his files might become complicated, thus he is separating an over 1,000 m² land lot. 'I will decide later whether to give it to my children or sell it,' he said.

To reduce waiting times, many people handling land procedures proactively complete preliminary steps for their applications online. Photo: Nguyen Dong

Mr. Le Ngoc Nhat, Deputy Chief of the Office of the People's Committee of Ngũ Hành Sơn District, stated that, on average, each counter at the one-stop shop receives and processes about 40 to 50 applications daily. However, in recent days, the number of applications has doubled, especially at the land department counter, with officials now processing about 80 to 90 applications per day. Approximately 200 files are queued each day, prompting the district People's Committee to reinforce the workforce with four additional staff members to assist.

The Deputy Chief explained that the increase in land application files is primarily due to residents' fears regarding the provincial merger, fearing changes to wards and the dissolution of the district, leading them to rush to finalize their land subdivision procedures. 'We explain to residents that there is no immediate need to update because the provincial merger will adjust land boundaries, and updates will be necessary, but they still want to complete their paperwork for peace of mind,' Mr. Nhat shared.

Additionally, many people are working to complete updates for properties attached to the land to avoid potential tax increases. Regarding land transactions, Mr. Nhat noted that while some transactions are genuine, there is also the possibility that brokers are taking advantage of the information about the provincial merger to queue and reserve numbers, with 'one person handling the procedures while two accompany them,' buying and selling to create an artificial land price surge.

The current land lot situation in Da Nang has experienced a slight price increase, which has occurred in waves but has not been sustainable. Last month, the Hoa Phuoc area (in Hòa Vang District), adjacent to Dien Ban (Quang Nam), also saw a land price surge, primarily driven by residents receiving compensation for agricultural land and then purchasing subdivided land lots for their children.

The FPT urban area has seen many real estate transactions recently. Photo: Nguyen Dong

Mr. Nguyen Duc Lap, Director of the Institute for Real Estate Research and Training (Vietnam Real Estate Brokerage Association), stated that land lots in the southern area of Da Nang, bordering Quảng Nam, have indeed seen transactions and price increases lately, especially following the announcement of the merger policy.

'The most active transactions are occurring in the FPT area and the Hoa Quy urban area (Ngu Hanh Son District) due to the availability of plenty of land lots. In contrast, there are fewer buyers in the northwest area of the city,' Mr. Lập said, noting that many large investors are launching projects in Da Nang, which also helps to stimulate market activity.

Regarding the sudden increase in the number of people handling land procedures, Mr. Lập explained that some land registration offices require landowners to directly process their applications or provide a power of attorney; they cannot delegate the process. Many individuals seek the assistance of brokers to help with the paperwork.

The real estate market in Da Nang is currently growing on a high price foundation, reaching the peak levels of 2019. According to Mr. Nguyen Duc Lap, investors looking to purchase land should ideally buy plots with legal ownership certificates to avoid legal risks. They should also be cautious, as Vietnam may impose taxes on a second property.

Nguyen Dong