The proposal, made by the city at a working session with Minister of Transport Truong Quang Nghia, is still considered by the ministry and authorized agencies but real estate investors have taken advantage of that to blow prices up.
Land and house prices in areas near the proposed entrance in Truong Chinh street, Tan Binh district has hiked by 10-20 percent within two months. At a 38 hectare housing land project in the street, the price has surged from VND35 million to VND40 million (US$1,760) a square meter. Apartment block projects in the area have also seen price up.
Similar condition has occurred areas near Quang Trung and Thong Nhat streets in Go Vap district. The price of a house in Pham Van Chieu street has rocketed to VND5 billion ($220,000) from VND3.2 billion a year ago.
Projects of Cityland Group in Phan Van Tri street have strongly increased prices within a short time.
Mr. Nguyen Duy Minh, director general of L&L Real Estate Company, said that real estate investors and speculators usually grasp new positive planning information to improve their product value without caring about the feasibility of the information.
Experts advice customers to keep calm and be cautious in order not to pay a price much higher than the real value of houses or land plots they buy in case the proposal is not approved.
