Danang warns about property speculators after master plan shift

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Central Vietnam's Danang city has warned that the tricks of several property speculators could drive up land prices in the city after recent announcement of the adjusted master planning. VIETNAMNET.VN/VIET NAM NEWS

The Danang Department of Natural Resources and Environment has warned that the tricks of several property speculators could drive up land prices in the central Vietnamese city after recent announcements of adjusted master planning.

To Van Hung, the municipal department’s director, said the announcement of the adjusted master planning of the central city would be an important factor to make the real estate market robust again, especially the secondary market.

However, he warned some speculators were playing tricks to gain profits, urging secondary investors to study the projects they were planning to invest in carefully before making any decisions.

Danang aimed to have an appropriate land price framework to ensure stable socio-economic development, he said.

After Danang city announced then-Prime Minister Nguyen Xuan Phuc’s decision to adjust the city’s master planning on March 29, the real estate market showed signs of warming up.

Specifically, a number of real estate agents in Lien Chieu district reopened after a long period of closure due to the frozen market.

According to Ngo Van Long, deputy director of construction and real estate company Pro Star, the decision about the adjusted city master plan planning helped consolidate the trust of investors in the property market of Danang.

While other investment channels such as gold and the securities market were not attractive and banking interest rates were low, investors tended to turn to the real estate market for investment, Long said.

There were slight increases in land prices in Danang city recently and this was a reasonable market development, he added.

According to the Department of Natural Resources and Environment, with the decisions to approve the investment policies of Lien Chieu Port and Lang Van resort complex, land prices at some real estate companies increased by around five-to-10 per cent compared to before the Lunar New Year holiday which fell in early February.

Overall, the real estate market saw slight increases in some areas such as Golden Hills and FPT projects while other areas did not see significant fluctuations.

Previously, Danang People’s Committee issued a land price frame for the 2020-2024 period about 10 per cent lower than 2020.

VIET NAM NEWS/ASIA NEWS NETWORK