Throughout Da Nang, abandoned shophouses are everywhere on 'golden land'

A series of abandoned shophouses on "golden land".

The commercial townhouse market - shophouse in Da Nang, once a feverish market, attracting many investors to pour tens, even 100 billion VND in the hope of "laying golden eggs", is now falling miserably in price. Throughout Da Nang, in "golden land" locations, thousands of shophouses have sprung up but are now abandoned for a long time, becoming "ghost houses", deserted.

According to VTC News reporters on December 10, hundreds of shophouses located on the east bank of the Han River, Son Tra district, are abandoned. Many shophouses have 2-3 frontages but are uninhabited, abandoned for a long time, covered with grass, reeds, and dirty.

These are shophouse areas of the Marina Complex Project invested by Danang Marina Joint Stock Company, built since 2016. The entire project consists of 6 blocks with 100 units, offered for sale in 2019 at a price of 10 - 12 billion VND.

The long-abandoned shophouses have many damaged items, the door system, glass... were broken by storms. Due to the lack of caretakers and managers, many properties were stolen. In addition, abandoned shophouses are also a source of environmental pollution, forcing local authorities to hire people and equipment to clean up to ensure urban aesthetics.

Similarly, on major routes such as Nguyen Sinh Sac, Hoang Thi Loan, Me Linh, Nguyen Tat Thanh extended (Lien Chieu district), Minh Mang, and urban areas in Ngu Hanh Son district, hundreds of commercial townhouses are in a state of disrepair despite being completed many years ago.

Responding to VTC News about this situation, Mr. Vo Nhan, in charge of communications for a real estate company in Da Nang, said that the current miserable state of the shophouse real estate market in Da Nang is due to many factors, but the most important factor is that the population density in that area is not up to standard and not bustling. Investors paint a beautiful picture of commercial housing, causing investors to spend money to "hold" apartments with the purpose of renting them out and reselling them for profit. In fact, these projects have no residents or other amenities, they are simply rows of houses adjacent to the street.

“ Many investors spent tens of billions, hundreds of billions of dong to buy 5-10 apartments with the intention of reselling for profit or renting, but this calculation failed because the purchase price at that time was very high, 10-12 billion dong/apartment, now they cut losses, selling for only 2/3, even 1/2, but there are no buyers. With no buyers or renters, investors had to leave the apartments abandoned, watching the money buried with the apartments that are deteriorating and damaged over time ,” said Mr. Nhan.

Sharing the same opinion, Mr. Dinh Van Hoang (H&H Land Real Estate Company Limited) said that many real estate investors in the commercial townhouse segment failed because of "buying buffaloes and drawing shadows", meaning they did not research the projects carefully before spending money but followed the virtual fever. " Now they want to sell at a loss but there are no buyers, so they have to leave them abandoned. The capital invested is large, if they cannot recover it, where will they get the money to renovate and complete the interior? The house is uninhabited, and it is degraded, they have to accept it, there is no other way ", said Mr. Hoang.

Although there are no specific statistics, currently in Da Nang there are about 1,000 shophouses belonging to many projects built on abandoned "golden land" locations, some of which have become garbage dumping sites, causing environmental pollution and affecting urban aesthetics.

Source: https://vtc.vn/khap-da-nang-nhan-nhan-shophouse-bo-hoang-tren-dat-vang-ar839772.html