Da Nang Standing Party Committee stated that individuals and organizations found to have fabricated rumors in relation to development projects would be strictly punished.
Recently, false rumors disseminated by real estate brokers contributed to hugely inflated land prices in Da Nang, Vietnam News Agency reported.
Local government emphasized information on the real estate market must be provided quickly and accurately to buyers and investors to stabilize the market.
At the end of last month, a rumor that said some communes of Hoa Vang District would be formed into a new district named Hieu Duc caused a wave of speculation and a high volume of land transactions. However, on March 7, the rumor was officially denied by the city’s Department of Internal Affairs.
Kiosks of real estate brokers in Lien Chieu District, Da Nang. (Photo: SGGP)
People’s Committee of Hoa Vang District urged buyers and investors to study development plans carefully before making decisions on land purchases.
In Hoa Xuan Ward, land prices also soared after a forged document circulated on social media claiming that Da Nang People’s Committee had given approval for building a bridge connecting Hoa Xuan Eco-Urban Area in Cam Le District and Bui Ta Han Street in Ngu Hanh Son District. Even though the city government confirmed the document was fake later, land prices stopped soaring but did not come back previous levels.
The Da Nang Department of Construction on March 8 issued a document warning about illegal real estate transactions in the central city and urging home seekers and investors to be careful.
Many property developers sold their projects to raise capital even when they did not meet all the requirements, which might infringe on the rights of buyers and cause disputes, according to Deputy Director of the department Nguyen Van Nam.
Potential buyers of housing projects which had not yet been built or land slots in urban projects should study the project plans and regulations carefully before buying to avoid possible damages, the department warned.
The recent land price hike was caused by a number of factors including false information spread by real estate brokers, said Duong Duc Hien, Director of Residential Sales at Savills Hanoi.
Regarding the resort property segment, the price hike was fuelled by the growth of tourism and improvements to the infrastructure system. For the land segment, it depended on the urbanization rate and population growth.
He added that while prices of resort property were stable, residential land prices in the city lacked stability, posing a risk to those who follow the crowd.
Director of the Da Nang Real Estate Research and Training Institute Nguyen Duc Lap said property prices in the city had not reached their peak, adding that they would continue to rise. The rush to purchase land was caused by speculation and brokers, and he warned investors to be watchful.
