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Hanoi’s tycoons incur big losses because of speculation deals in SEZs

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Real estate transactions in Van Don and Bac Van Phong, reserved to become SEZs in the future, have become frozen.

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Real estate transactions have become frozen

 

Big investors from Hanoi cannot sell land to recover investment capital.

Xuan Thanh, a real estate broker, has returned to Hanoi from Van Phong in Khanh Hoa after a period of making money in the ‘promising land’. Asked about the current situation, Thanh said “investors are running away, and real estate brokers are suffering”.

Thanh said that after hearing about the development of an SEZ in Van Phong, investors from Hanoi flocked there half a year ago. They spent hundreds of billions of dong to collect agriculture land and sell land plots for fat profits.

They once made profits when the draft law on SEZ was put into discussion at National Assembly’s session. However, as the law’s ratification was postponed, all the transactions there have stopped.  As a result, the speculated land plots are not selling.

Thanh said that he still has two unsold land plots. However, he has to return to Hanoi, hoping that he would come back to Khanh Hoa when the land price increases.

Tran Dinh Quy, chair of the Khanh Hoa Real Estate Brokers’ Association, confirmed that the National Assembly’s decision on postponing the law’s ratification has had a big influence on speculators.

However, the decision was good news for big investors who want to develop projects in the SEZs, not just to speculate. The market has cooled down and the prices have been forced down. 

The same situation can be seen in Van Don and Phu Quoc where there will also be SEZs in the future. On Phu Quoc Island, many real estate brokerage offices have shut down after they exploded in number many months ago.

A survey conducted by the Vietnam Real Estate Brokers Association at the time after the postponement of the law found that real estate transactions in Van Don, Bac Van Phong and Phu Quoc all were frozen. The land prices in the areas are staying at high levels, but the liquidity is very low.

An analyst commented that with the wave of people migrating to Phu Quoc, the demand for land plots is still high. However, only legitimate land plots in areas with good infrastructure are wanted.

This explains why transactions of land plots in the 67.5 hectare, 10 hectare and Suoi Lon residential quarters, programmed by local authorities, are still busy, while there are few transactions in other areas.

The analyst warned that as investors and speculators run away, there will be many land disputes.

 

Source: VietNamNet

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