The real estate market in Da Nang and Quang Nam is quiet, investors are looking for a way out

Near the end of 2018, Mr. Nguyen Duong (Hanoi) bought a piece of land in Duy Xuyen district (Quang Nam) with an area of ​​nearly 500m2. The total amount that he had to pay was nearly 3.5 billion VND.

Lot of land with 2 sides of the road, near the river, beautiful location, so many people asked to buy it later.

Many investors who missed the peak of the real estate market in Da Nang and Quang Nam are now looking for a way out. Illustrations

At the beginning of 2019, the land fever spread throughout Da Nang and Quang Nam, Mr. Duong’s plot of land increased rapidly, increasing the price by 3 times. At that time, Mr. Duong hesitated to sell because he expected the price to increase further.

However, the land fever quickly passed. For many years, his land has not been sold even though he has reduced the price. He is willing to pay a brokerage fee of one and a half times, twice as much to quickly sell the plot of land, but the broker says only a few people ask for a quote or pay a low price.

Mr. Duong confided: “I’m spending tens of billions of dong, including borrowed money, to pour it all into the land, but the land cannot be sold, so I have to live hard to make ends meet. Now with little profit, I have to sell, just hoping to get out of the goods soon.”

Similarly, Manh Hung, an investor in Hanoi, shared that in 2019 he was surfing the real estate market in Quang Nam to make a profit. At first, each lot only paid a deposit, but he sold a few hundred million profit.

Seeing that the business was quite smooth, he mobilized capital from relatives to continue pouring money into the land.

He bought a land plot of nearly 300m2 in Hoi An for 20 million VND/m2. Just bought a few days, someone has paid a difference of 300 million dong, thinking the price will increase, so he has not sold it yet. Finally, after 3 years, his plot of land is still unsold.

“I swing at the right time when the market is ‘top’ so it’s hard to sell now. If you sell, accept a loss because someone pays 18 million VND/m2. The land I bought at a high price, was located in a fairly densely populated location, without further infrastructure development, so the ability to increase the price was very difficult. Now I just hope the market warms up a bit so that I can sell at the right cost to push the goods away”, Mr. Hung said with a sigh.

According to Mr. Hung, he went to the place to exchange with brokers with the desire to promote the sale of land plots to get money to pay debts and invest in other areas, but in reality, the market was difficult.

“The real estate market in Quang Nam and Da Nang is generally quiet, and it is difficult to get out. Many people are in the same situation as me. There are two options, either continue to hold the ground, wait for the market to warm up to exit or reduce the selling price. If I don’t sell successfully this May, I will reduce the price, accept losses, but wait, I really don’t know when,” Hung added.

Quan, an investor and real estate broker in Da Nang, shared, Da Nang and Quang Nam markets are quiet because land prices have been anchored high after the “surf” period.

For example, a 100m2 plot of land in Hoa Xuan in 2015 was only about 400 million VND, after a few years the price increased 10 times, approximately 4 billion VND. Land is bought and sold again and again, the price is high, so the possibility of further price increase is very difficult, investors do not jump in. And people with real needs to buy to live, the price is too high, so it is difficult to approach.

To exit, from the end of 2021, some investors have “made waves” but the transaction is still gloomy.

Recently, to create a virtual fever trick, some groups of people posted news that people were crowded to submit documents, causing overload at the one-stop department in Hoa Vang district (Da Nang).

However, the Da Nang Department of Natural Resources and Environment said that this is a trick to inflate land prices, causing a virtual fever from groups of people with the intention to profit. According to the survey and research, most people make real transactions according to their needs, not too much, but the pictures posted on social networks have quite a lot of members who are groups of real estate brokers. brokers do land procedures for others.

“After a short time, with many tricks to create a virtual fever and then this group of people withdrew from the area, the land price returned to the true value of the market and according to actual demand. Only the last buyer wants to sell, but no one buys it back at a high price like they bought it, even many people have to accept to sell at a loss because they use borrowed money to buy speculative land and sell for a profit, leading to after-sales service. Repeated results are money lost, disability,” warned Da Nang Department of Natural Resources and Environment.

Dieu Thuy