Illegal real estate activities rampant in Lam Dong

Brokers in Lam Dong Province are using various methods to trick customers including selling ghost projects and famous national scenic spots.

Illegal real estate activities rampant in Lam Dong

Brokers in Dalat have continued spreading false rumours in order to trap new customers. When a customer expressed the desire to buy a plot of land at the cost of VND700m (USD30,000) to VND900m, Thanh led him to an abandoned land which used to be a coffee farm. Thanh said there was a plan to turn this area into an urban area so the land was very valuable.

"I know this land via acquaintances so I can sell you at good prices of VND7m (USD300) per square metre," Thanh said. "The prices are increasing daily so if you don't buy now you may lose the chance."

However, further research will show that many people claimed that they owned that land and are also putting it up for sale along with many commitments and promotions. Hundreds of people from other provinces and cities like HCM City, Binh Duong and Dong Nai have been tricked into investing in ghost projects with high profits.

Lawyer Duong Thi Nhung from Lam Dong Bar Association said that the real estate market in Dalat was very complicated. The same plot of land is sold to multiple customers and there are many ghost projects.

The same situation has also spread to other districts in Lam Dong Province where brokers even offer to sell forestry lands and national tourism site. Da Teh Lake, which was recognised as a national tourism site in 2004, was put on sale at the price of VND50bn (USD2.1m). The customer must deposit VND10bn and in the next six months, they will receive land-use transfer contract, investment permit as well as sand exploitation permit.

Bui Van Hung, chairman of Da Teh District People's Committee, said they were verifying the information and would issue warnings for the public.

"An investor had been allowed to exploit Da Teh Lake for tourism activities but because the project was ineffective, the investment license was revoked. We have no intention to call for another investment so news about Da Teh Lake is all fake," he said.

Nguyen Van Hoa, chairman of Ward 3 in Dalat City, said pine forest in their area was being poisoned for land encroachment. The authorities quickly noticed and removed the fence and poles. Dalat City People's Committee has issued many documents in order to tighten inspections and punishments but there were serious problems.