Ring road plan to transform market
Ring road plan to transform market
Concerns are being raised over how to ensure efficiency and improve real estate prospects, as projects to set up Ring Road 4 in Hanoi and Ring Road 3 in Ho Chi Minh City are proposed.
The government has asked the National Assembly (NA) to consider and decide on the policy for investing in the ring roads to be located in the country’s two biggest cities.
Tran The Anh, sales director of Thang Loi Group, said that the land fund in inner cities is increasingly exhausted and prices are high, with investors turning to suburban real estate. “There is a thirst for houses for those living and working in Ho Chi Minh City in particular,” The Anh said. “The shifting trend of investors and individual financiers is also creating a new vitality for the real estate market in the suburbs.”
One of the issues discussed by NA delegates and experts is how to exploit the land fund around the two ring roads, which will soar in value. Already in many places, the price of land in the area has increased dozens of times over.
“Because the two routes will open up a vast land fund, the management of auctions of land use rights and construction planning needs to be carried out very strictly, ensuring compliance with the law,” said Ta Thi Yen, a deputy of the NA from Dien Bien province.
Meanwhile, Le Thanh Van, an NA deputy from Ca Mau province, suggested the government needs to exploit the land fund in the corridors of these traffic projects, especially in areas near industrial parks and urban areas, in order to collect different types of taxes and fees to cover the compensation and construction costs.
On June 16, the NA approved the investment schemes of Ring Road 3 in Ho Chi Minh City at more than $3.2 billion and Ring Road 4 in the capital at more than $3.7 billion, via the state budget and contributions under the form of public-private partnerships and build-operate-transfer.
Ring Road 4 in Hanoi will be divided into seven projects and have a total length of about 112.8km passing through Hanoi, Hung Yen, and Bac Ninh; while Ring Road 3 in Ho Chi Minh City has a total length of 76.3km, passing through Ho Chi Minh City, Dong Nai, Binh Duong, and Long An.
