The Next Property Boom: Navigating the Real Estate “Fever”

In recent days, real estate investors from Hanoi and Ho Chi Minh City have flocked to Da Nang, spurred by rumors of a potential land “fever.” Land prices have surged, with some plots increasing in value by hundreds of millions of dong.

On-hand to Provide Consultations

On March 19, numerous kiosks could be seen at the Golden Hills eco-urban area in Lien Chieu district, a busier scene than a few months ago. Real estate brokers were readily available to provide consultations to potential clients.

According to some brokers, land prices in Golden Hills have increased by approximately 100-200 million dong per plot. The current price per plot ranges from 2.3 to 3.2 billion dong. Ms. Nguyen Thi Huong, a real estate agent, attributed the rise in land prices in Golden Hills to the development of several prominent surrounding projects, such as Lien Chieu Port and Hoa Ninh Industrial Park.

Land prices in the adjacent Bàu Tràm Lakeside urban area have also seen an upward trend. Mr. Do Phuoc Tuan, from the Thanh Phuc Land real estate exchange floor, noted that recently, many investors from Hanoi have come to Da Nang to invest in land, anticipating future growth. Representatives from the Tâm Thảnh Thơi real estate office shared that due to rumors of a potential provincial merger, land prices in areas bordering Da Nang and Quang Nam have increased. Both end-users and speculators are among the interested buyers. Plots located closer to Da Nang have attracted more attention from investors.

Rumors of Dak Lak’s potential merger with another province and its transformation into the center of a new province have caused the real estate market to heat up after years of stagnation. Additionally, the commencement of several large-scale projects has further fueled real estate activity in specific areas. Along roads believed to hold potential, such as Dong Khoi, Ha Huy Tap, Y Moan Ênuôl, and Y Nie, real estate brokers have been busy facilitating land transfers.

A real estate broker in Dak Lak revealed that before the Lunar New Year, their company handled an average of 2-3 land plots per day. However, this number has now surged to 20-30 plots per day, and land prices in certain areas of Buon Ma Thuot city have increased by 30%-50%.

On the morning of March 19, the land-related document reception system of Buon Ma Thuot city had 254 people in line, with over 100 sets of documents being processed. Many individuals who arrived late and were unable to get a number had to leave.

Mr. Tran Van Bao, a prospective buyer from another province, shared that he had heard rumors of a potential merger involving Dak Lak, prompting him to consider investing in land there. Through a broker, he learned of a plot of land priced at 2.55 billion dong and a house priced at 3.65 billion dong. However, upon his arrival, the broker informed him that the land had already been reserved, and the house price had increased to 3.8 billion dong. The buyer would also have to handle the necessary paperwork, so he continued his search.

Focus on the Resort Segment

The real estate market in Ninh Thuan province is also showing signs of heating up. Currently, real estate products along the Ninh Thuan coast, particularly in the resort and tourism segments, are attracting significant investor interest. The Vinh Hy area is also considered a potential real estate destination.

Recently, land speculators have taken advantage of planning information to inflate land prices in certain promising areas of Ninh Thuan. From mid-March to the present, on real estate brokerage pages in Ninh Thuan, information about land plots in four projects that have been approved for investment (including the new Phu Ha urban area, the new Bo Song Dinh urban area, the new My Phuoc urban area, and the Dam Ca Na urban area) has been re-posted to attract investors.

“In addition to projects that have not yet been implemented, brokers are also promoting information about coastal areas, Vinh Hy, and the Binh Son – Ninh Chu coastal urban area… in the hope that land prices will increase following the merger news,” said Mr. Ho Duc Hung, a real estate investor in Phan Rang – Thap Cham city.

According to the Ninh Thuan Department of Construction, there are currently 19 approved housing and real estate projects in the province that are being implemented or completed. These include 13 residential and new urban area projects, one social housing project, and two tourism and resort real estate projects.

Affected by the overall real estate situation in the country, the real estate market in Ninh Thuan province in 2024 was relatively quiet. However, in recent days, rumors of provincial mergers have sparked land “fevers” once again. Authorities advise investors to remain calm and not make hasty decisions under pressure from speculators or based on rumors.

Risks and Uncertainties

Mr. Vo Hong Thang, Deputy General Director of DKRA Group, a real estate services company, attributed the rise in land prices to rumors of provincial mergers. However, he also pointed out that speculators among brokers intentionally create “fevers” to profit from the situation.

Mr. Thang analyzed that pushing land prices based on such uncertain information carries risks. The merger only involves administrative changes, and by the time this information becomes outdated, buyers may face losses.