What can we see from the fever of Danang property market
What do the numbers say?
The Danang property market fever in the districts which are located far from the city center has been slow down. It is the result of government action. They have determined the fake news about the real estate market in this area as well as identify the trick of real estate agents.
According to the research of the local entity in the first two months of 2019, the traffic of searching for Danang property sharply increased. It matches with the fever of Danang property market at that time.
In specific, the traffic of searching for the property market in February increases by 14% compares to January. The volume search of project flat also rises by 21% and the private house grows by 48%. From these numbers, it is easy to see that the property buyers and investors always observe to wait for a good chance in this fever period.
The imaginary fever of Danang property market
What is happening on the market
The observation of the local journalists shows that the price of Danang property rises incredibly. It happens in just a few months in the areas which are far from the city center. The real estate agents who are working independently do not even care about the location or feng shui of a flat. They go around the village to find any flat for sales. As a result, when the local people sell all their property, they even fill the ponds to sell.
In Hoa Tien and Hoa Chau wards, the price of flat grows unusually. Particularly, in Hoa Tien, the flat price in November last year was 1.5 – 3 million per square meter. However, in just a few months later, it reaches 8 – 10 million. Furthermore, the local investors fight against each other to get the right to sell those flats. In Hoa Chau ward, the price of flat also increases 2 to 3 times than before Lunar New Year.
It is not only personal flats but also project flats remarkably rise. A flat costs 2.5 – 2.7 billion can increase up to 3.5 billion in just a few months. There are so many flat projects increase the price for sales by 20-40% compared to the last price in 2018.
But the fact is
However, Danang property market has an imaginary signal since most of the participants in those transactions are the agents. According to government research, there are only 20% of those transactions are real. Therefore, they take action on this imaginary fever. As a result, the fever has temporarily stopped.
Although there is no transaction in the market this time, the price of flats is still very high. In fact, it is difficult for the price to be as low as it was. This is a big corollary of the fever since those who really want to buy a flat have to pay a very high price. Meanwhile, the agents who caused this fever had earned the profit after all.
This is not the first time that Danang property is in the imaginary situation. However, the local people still are blinded by fake news and independent agents still can abuse.
What do the agents base on to abuse in Danang property market?
Normally, the independent agents base on the early announcement of the Danang property projects to increase the price and create the fever. However, due to the long historical development of Danang property market, they have a more professional trick. They create fake news which is based on the official announcement. Thus, they can catch the trust of the local people and investors.
There are three basics that the independent agents make fake news from during this time of fever.
The local government policy of Danang property development
The first basic of the independent agents is the local government development strategy. Danang aims to become the core of Central region in economic and social development. The city goal is to contribute importantly to the development of the whole country. In the Spring Meeting, the City Secretary approved for an investment which budget is up to 490 million USD for 8 real estate projects. This is a huge investment budget for the city. Therefore, it hides a really big potential of the Danang property market. As a result, the independent agents cannot miss out this chance. They take advantage of it to impact on the price of flats and create the fever in the real estate market.
The independent agents make the fake news themselves
Besides fake news that the independent agents make base on the Danang property strategy of the local government, they also spread out other fake news themselves. They imagine the unreal projects where they want to push the price up. When the agents transfer the fake information for each other, it naturally becomes real to the local people. Therefore, those imaginary projects attract the notice of the locals and investors.
The lack of supply on Danang property market
There are so many Danang property projects is pending at this time to waiting for the implement and inspection before opening for sales. Therefore, the supply on the market is rare. As a result, it encourages the customer behaviour that they tend to buy more to store.
In another side, the locals have only a few channels to invest. Hence, the very first option they think of when having much money is to invest in real estate. Furthermore, earn from the real estate market is usually high. It might be one year after investing, you can get a profit which value is ten times to the cost you have spent.
This Danang property fever impacts strongly on the economy. In specific, an asset in the market is changed unusually. Furthermore, a huge amount of the locals’ wealth is stick to the flats that they do not know when they can get the profit back. The poor are poorer and the rich are richer.
Source: Ngoc Suong – Dien dan doanh nghiep | Realtimes.vn