Land fever: Record price increase, loss of tens of billions

Any major civil project or important event taking place in Da Nang is an opportunity for real estate speculators to take advantage of the situation and inflate prices, causing many people to regret falling into the trap of real estate speculators.

Follow the trillion-dollar projects

In March 2017, the Han River tunnel project with an investment of more than 4,000 billion VND was discussed and Da Nang leaders were determined to implement it. Real estate speculators seized this opportunity, pushing land prices at the beginning of the tunnel bridge in Nai Hien Dong area, Son Tra district up 2-3 times.

On March 6, the Prime Minister did not agree to the underpass project, causing land prices to plummet, making many people who own land near the area feel regretful. Many people even lost tens of billions of dong.

Da Nang land fever makes many people suffer

Land fever has been simmering since early 2017 and has exploded since news broke that Da Nang is implementing the Lien Chieu port and Kim Lien cargo terminal projects. Although up to now, those projects are still on paper.

Information about the Lien Chieu port project was discussed by real estate speculators in early 2017, when the Japanese Port Consulting Company (JPC) submitted to the leaders of Da Nang City a VND5,581 billion investment project for phase 1 of Lien Chieu port. This project will build a general cargo terminal and a container terminal, to be completed in 2022.

Along with Lien Chieu Port, the new Kim Lien cargo station project will be built on more than 80 hectares, part of the overall Da Nang Railway Station Relocation Project with a total investment of about 5.7 trillion VND.

Not to mention a series of other infrastructure projects that will be implemented in Lien Chieu district in the near future, such as: Hai Van Tunnel is implementing tunnel line 2; Da Nang - Quang Ngai expressway will be put into operation in 2018.

Information from the rumored trillion-dollar project has caused real estate speculators to flock in, pushing land prices in the northwest area of ​​Da Nang to skyrocket over the past time.

Beware of the project-based fever

Seizing the opportunity, many individual investors and real estate speculators rushed to buy land. Of course, the big names in the real estate industry did not miss the opportunity, typically a series of projects with thousands of townhouses, single villas, twin villas, hotels, and parks were launched to welcome customers.

The prices of the projects are also quite attractive, around under 2 billion for a villa plot, so initially it received a lot of attention and deposits to buy land and apartments from customers from Hanoi and Saigon.

The area planned to build Lien Chieu port over 5,000 billion makes land prices in this area hot.

Land prices are skyrocketing - that is the assertion of a real estate broker in the Kim Lien station project area - named Hung "black".

“I have been a real estate broker here for over 10 years and have never seen land prices increase so rapidly as in recent times. At the end of 2016, land prices here were only around 150-170 million VND per plot, but now they have increased to over 300 million VND, but there is no land to sell,” said Hung “den”.

Mr. Nguyen Xuan Lam - living in Son Tra - said that in early 2017, with some savings, he bought 2 plots of land in Hoa Lien for 380 million VND/plot. More than a month later, someone offered him 430 million VND/plot but he has not sold yet.

"These are plots of land located near the Lien Chieu port project phase 1, certainly when the project is implemented, the price will increase" - Mr. Lam affirmed.

Commenting on the “land fever” that is forming in the northwestern region of Da Nang, according to real estate experts, the wave of real estate investment following trillion-dollar projects has become a rule. If investors are not careful, they may “eat bitter fruit” as happened in Da Nang in previous years.

“Thousand-billion-dollar projects often create great attraction, attracting real estate investors, while in the Northwest of Da Nang, there are two projects: Lien Chieu Port and Kim Lien cargo station, so land fever in this area is inevitable. The problem is that investors need to be cautious" - an expert emphasized.

Mr. Do Minh Dung, a real estate expert, said that investors have a reason to rush to follow the investment wave following the trillion-dollar projects because the opportunities here are huge. The reason is that when the project is formed, it will create a huge spread, enough to change the face of the area and create great resonance in terms of commerce and society.

“Thousand-billion-dollar projects often entail the completion of transport infrastructure, social infrastructure, living amenities, etc., so wherever there are these projects, there is the potential to open up a vibrant real estate market, with high added value and good liquidity. Of course, real estate speculators can take advantage of this to push up land prices, causing a fever in the market,” Mr. Dung emphasized.

To ensure the safety of investors buying land, Mr. Bui Xuan Dinh, General Director of Trung Nam Land, recommends staying calm in the current land fever. Customers should choose products from reputable real estate companies.

“Investors need to choose reputable businesses and invest in real, quality, transparent projects, demonstrate strong finances, and be willing to provide clear legal documents to avoid possible risks,” Mr. Dinh advised.

In fact, land fever has occurred in many areas in Da Nang City. Many investors have had to accept losing their homes, accumulating debts and even seeking death when trading real estate following trillion-dollar projects.

According to Vietnamnet