When "the stork flies away, the customer disappears."

Báo Thừa Thiên Huế•10/08/2023

The wave of land speculation brought real estate brokers (commonly known as agents) seemingly dream-like incomes, while investors dreamed of a life-changing opportunity. But when the land speculation frenzy subsided, it left behind countless heartbreaking and bitter stories…

The golden age of land brokers

Recently, we visited Phong Dien, one of the areas where land prices once skyrocketed. Through an introduction from an acquaintance, we met and spoke with Ms. S., one of the most successful real estate brokers in the area.

In a small cafe at the An Lo intersection (Phong An, Phong Dien), which our colleagues introduced us to as a "real estate cafe" because it was frequented by many land brokers during the land boom, Ms. S.'s story partly illustrates the "hot" and then "cold" land buying and selling landscape of the past period, which seemed like something out of a movie.

“During the real estate boom, I had a dream income. When land prices peaked, some months my income reached hundreds of millions of dong,” Ms. S. began her story.

It was around 2017, when land prices began to show signs of rising. Ms. S., a salaried civil servant, took on additional work as a real estate broker – a job she openly admitted to being a "land middleman" – with the intention of improving her family's living standards. With her knowledge and dynamic nature, Ms. S. quickly adapted to the work we described as "connecting" or "bridging" clients looking to buy land in the local area, whether in mountainous or coastal regions.

At that time, land prices were rising steadily, and Ms. S. was becoming increasingly wealthy. According to Ms. S., for each successful transaction, she received 1-1.5% of the total value of the land plot (from either the buyer or the seller). If the land plot was worth 1 billion VND, the broker earned 10-15 million VND. During the land boom, Ms. S. brokered 2-3 land plots in a single day, some plots priced as high as 5-7 billion VND. In some months, Ms. S. pocketed hundreds of millions of VND.

"Around the beginning of the third quarter of 2022, my monthly income from being a real estate agent dropped to zero," Ms. S. recalled thoughtfully, remembering the time when the real estate market "froze."

Mr. LV H, formerly a gardener and bonsai artist in Zone 3, Phu Loc District, abandoned his bonsai career more than four years ago when he ventured into real estate brokerage. Now, he has returned to his old profession, which he believes requires less income but is sustainable.

Mr. H. stated that the current transaction rate is less than 10% compared to 1-2 years ago. Most transactions involve developers selling to cut their losses, accepting a 20-30% loss compared to market prices. Even with these losses, the success rate of transactions remains very low.

To make ends meet, Mr. H. mainly sells his products online and handles legal paperwork for clients, earning just enough to cover his daily fuel costs.

The more you cling, the more you suffer.

Currently in Thua Thien Hue , from rural areas to cities, it's not difficult to see signs advertising land for sale everywhere you go. However, unlike in previous years when buyers and sellers usually gathered to exchange information in cafes, now it's quiet. Even notary offices in Hue City are experiencing a low number of visits for land transactions.

Nearly two years ago, a real estate transaction office in Xuan Phu ward, Hue City, was established by a friend. At that time, more than 10 employees worked at full capacity every day to support the constant stream of customers coming and going for transactions. However, the "cooling down" of the real estate market swept through, severely impacting his office. Customers dwindled, and he had to close it down.

My friend shared with a sigh that, during the peak of the "land fever," his unit could handle 2-3 transactions per day within the local area. That's not including deals in neighboring provinces like Da Nang , Quang Nam, and Quang Tri…

"From mid-2022 until now, all our work has come to a standstill. With no transactions, there's no other way, and employees have gradually had to quit and switch to other jobs to make a living," he confided.

Ms. Phan Thuy Tr. (An Cuu, Hue City) said that during the "land fever" period, everyone seemed to be involved in real estate trading. Even the vegetable vendor at the market was discussing the value of each plot of land and the profits from successfully "flipping" garden land and other land.

To try her luck, Ms. Tr. also gathered nearly 1 billion VND to buy more than 1 sao (approximately 1000 square meters) of agricultural land in Vinh Hung commune, Phu Loc district, with the intention of "speculating" to make a profit.

However, just as the new ownership transfer documents were being finalized, the market slowed down. Despite numerous attempts to sell, no one inquired, leaving Ms. Tr. to reluctantly wait for an opportunity when the real estate market recovers.

Cases like Ms. Tr.'s can be seen anywhere, as everyone is eager to profit from land. Some invest their savings, while others borrow from banks and are now burdened with debt.

But that's just individual investors. For those who "play big," during our research, we encountered and heard stories of people who suffered losses because of real estate.

For example, an official in District P, along with his relatives, raised nearly 20 billion VND to buy land with the aim of getting rich quickly during the land boom. Unexpectedly, the land is now unsaleable, while this person has to bear nearly 100 million VND in bank loan payments, including both principal and interest, every month.

(To be continued)

Lesson 2: "Falling" on a pile of vast wealth

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