Dak Nong reduces up to 70% of real estate transactions

In 2023, the real estate fever has passed, land transactions in Dak Nong have also become sluggish, investors accept losses but still find it difficult to sell. Photo: Phan Tuan

Borrow money to invest in buying... land

Recently, the life of Mr. Phan Minh Th.’s family in Dak Mil district has been turned upside down. During the land fever period, he borrowed more than 10 billion VND from outside and banks. Currently, the real estate market is sluggish, and Mr. Th. has not been able to sell the land to recover the capital.

According to him, currently, bank interest, interest from outside loans... are making his family miserable. Not stopping there, in the near future, the family will have many more bank loans coming due.

According to Mr. Th, at the end of 2021, his family bought and sold many plots of land to make a profit, some of which made a profit of 2-3 billion VND in a short period of time. After that, his family mobilized capital from family, relatives, and bank loans... to buy more plots of land.

"However, from the end of 2022 until now, the real estate market has stagnated and is illiquid. If this situation continues, the family's life will be even more difficult," Mr. Th shared.

Similarly, Mr. Le Quang T, in Gia Nghia city, also invested a large amount of money to buy land for surfing. However, when the land was sluggish, Mr. T's family felt like "sitting on hot coals".

"For the past 5 months, I have not been able to sell any land. Not to mention, the bank's maturity date is approaching," said Mr. T.

Suffer heavy losses to sell land

According to the People's Committee of Gia Nghia city, in late 2021 and early 2022, on average, the one-stop department handles 100-150 files related to real estate buying, selling and transferring each day.

However, currently, the number of transactions related to buying, selling and transferring real estate in the area has decreased by 70%. In addition, real estate values have also decreased by an average of 30-50%.

For example, Ms. Le Thi H, an investor in Thu Dau Mot (Binh Duong) bought a 1,000 m2 plot of land for 1.5 billion VND in Dak Ha commune, Dak Glong district; of which, 500 m2 was registered as residential land.

When buying, Ms. Huong planned to keep it for a while and then sell it on the market to make a profit. However, the real estate investment process did not meet expectations, forcing her to sell early. After 6 months of price adjustment, she accepted being forced down to 900 million VND, a loss of 600 million VND compared to when she bought it.

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