Property fever prompts tighter inspection in central Vietnam's economic hub Danang

Chairman of Danang city People’s Committee, Pham Duc An, has ordered a comprehensive inspection and audit of land valuation and auction activities to prevent and address market manipulation that could destabilize the local property market.

Accordingly, An requested relevant agencies to inspect and strictly handle any acts of price manipulation or property speculation, while enhancing oversight of land management and use across the city.

In recent months, Danang has seen signs of a property “fever” in multiple areas, especially where there are rumors of new planning, administrative reorganizations, or major infrastructure developments.

In areas such as Ngu Hanh Son and the former Hoa Vang district, applications for land transfers, certificates of land-use rights, inheritance, and gifting have surged sharply. At times, residents have queued since early morning to submit land-related paperwork.

Vietnam is developing an international financial center, located in both Ho Chi Minh City and Danang, the country's southern and central economic hubs, respectively. Danang is well known for "golden" beaches among the most beautiful in Asia.

The Department of Natural Resources and Environment (DoNRE) was tasked to lead, in coordination with the Department of Construction, Land Development Center, and local authorities, a thorough inspection of all land valuation and pricing activities; compensation, support, and resettlement in state land recovery cases; and land-use rights auctions.

The goal is to promptly detect, prevent, and severely punish violations, particularly misuse of land auctions to inflate prices for illicit gains that could disrupt market stability.

All relevant agencies must submit inspection and enforcement reports detailing results, challenges, and policy bottlenecks. These reports will be forwarded to the Ministry of Natural Resources and Environment, which will then report to the Prime Minister for direction.

The Danang construction department on Wednesday issued a notice requiring all related entities to strengthen anti-money laundering measures in the real estate sector.

According to the department, in response to tighter market oversight requirements, banks, developers, and real estate exchanges must enhance compliance to ensure transparent and lawful transactions.

Entities are required to issue internal anti-money laundering regulations in line with the Law on Anti-Money Laundering (2022), the governmental's Decree No. 19/2023/ND-CP, and the State Bank of Vietnam's (SBV) Circular No. 09/2023/TT-NHNN.

These internal rules must be reviewed and updated annually to reflect current risks and management needs.

Organizations must also assess money-laundering risks, report regularly, and implement risk management procedures accordingly. For unusual or large transactions - those valued at VND400 million ($15,180) or more - banks, financial institutions, and real estate firms are required to report promptly to the SBV.

The construction department also instructed stakeholders to access the SBV’s news portal for the latest national money-laundering risk assessment and to contact the central bank's Anti-Money Laundering Department for technical support and materials.

In addition, the department urged collaboration with the Department of Culture, Sports and Tourism, the SBV - Region 9 Branch, and local authorities to educate officials, businesses, and citizens on anti-money laundering laws and compliance requirements.

“Enhancing anti-money laundering measures in real estate is essential to control financial risks and ensure a transparent and healthy investment environment that aligns with international standards,” the construction department added.