As usual, before and after Tet festival, the ‘land fever’ has been spreading rapidly across Da Nang as land prices have recently skyrocketed.

Son Tra District, which has posted the fastest growth in hospitality industry in Da Nang over recent years, is also experiencing the ongoing land price hikes.

In the Tho Quang and Man Thai wards, for instance, the price of a vacant land lot or a house located in a small alley has increased by from 10 - 18 million VND/ m² to 30 - 55 million VND/m². Accordingly, a 60-70m² land lot in a small alley, which was valued at around 1 billion before the Tet festival, has now reached 3-3.5 billion VND, whilst a house covering an area of 90-100m², also increased from 1.5 billion VND to 4 billion VND.

In a similar vein, rumours about the possible deployment of large-scale projects amidst a growing number of property buyers coming from other localities nationwide has caused the land price in the communes of Hoa Tien and Hoa Khuong in rural Hoa Vang District to increase day after day.

In the context of the near future construction of the Lien Chieu megaport project, the land price in the namesake district, and the communes of Hoa Lien and Hoa Son in Hoa Vang District, has also been 2-3 times higher than in last October.

In some cases, the prices of some properties sold to end-users in some real estate projects are higher than the original rate. In reality, land across the city is being speculated as most of the land buyers are speculators who purchase and do nothing but wait for a chance to resell the land plots in the hope of reaping the highest possible profits.

Many local experts voiced their deep concern over the ‘land fever’ that might affect the investment environment and economic development, and cause social unrest in the city as well.

Recently, the Da Nang authorities have dismissed reports circulating on social networks about the establishment of a new district named Hieu Duc (separate from Hoa Vang District).

The rumours stated that the city would create a new district from 4 communes in Hoa Vang District, namely Hoa Khuong, Hoa Nhon, Hoa Phong, and Hoa Tien.

The false information was intended to trick farmers and inexperienced investors. Brokers can earn huge profits from land transactions. Some brokers also mentioned that land plots in rural communes had been sold for 10 times their true value.

In another case, the Quang Nam provincial authorities have also refuted a false rumour in recent times that its Dien Ban Town will be merged into Da Nang.

Against the backdrop of the illegal property transactions and land speculation in rural areas, the municipal Department of Construction has warned that the general public should learn more about the national regulations on housing and civil laws before opening their pockets, and sign deals with proper contracts to purchase houses and residential land lots at urban development projects, thereby avoid falling victim into such pricing traps.

However, in addition to the release of such warnings, it is high time for functional bodies, especially law enforcement agencies, to carry out the investigation into false rumours relating to real estate, in a prompt fashion.