Danang land speculation spikes after factory relocation

Hundreds of people have arrived in Hoa Vang after the inspectorate announced the investigation results over the steel plants, Dana-Italy and Dana-Australia. On October 8, real estate transaction kiosks were crowded. However, according to many experts, most of them are brokers.

"A plot of land in this area used to worth VND800m (USD34,300) but it is now being sold at VND1bn to VND1.2bn. The prices are still rising," said local Nguyen Van Tuan.

According to many locals, besides the announced relocation of two steel plants, there are rumours that the city authorities are planning many projects in the area.

Tran Cam from Hoa Lien Commune said everything escalated in just three days. "The brokers flooded in, pushing up prices. This area is 20km from the city centre so it had never been affected by other changes in the real estate market before. This is the first time I’ve seen such a situation."

A leader of HL Land Company pointed out that industrial zone and port projects are being used to spread rumours. Investors buy and re-sell the land to inflate the land prices and attract other investors into the area.

Phanh Thanh, a businessman in Danang, confirmed the speculation in Hoa Vang District, saying that the final buyers would have to bear the bad deal.

Hoa Lien Commune Chairman Truong Tan Manh said, "We have sent out employees to monitor the situation but haven't detected any violations. The transactions are carried out among the sellers and customers, I'm not sure if there is any land speculation."

Le Van Tuan, head of Danang Department of Construction said Hoa Lien 5 is 30 hectares and a resettlement area. Most households have been issued land-use right certificates and they are also monitoring the situation.