The real estate market has witnessed the excitement with many projects being kicked off, or re-launched to market. However, there are still many projects that are “projecting” waiting for the rescue.
After a long time “lying motionless”, with the advent of large enterprises, some projects were reborn to be re-launched to market.
For example, in Hanoi, the Hanoi Department of Construction has announced a list of 9 real estate projects formed in the future qualified for business approval in the second quarter 2017. Interestingly, of these 9 projects, two projects have been “inactive” for many years, now resurrected.
See more: Vietnam Real Estate News
For example, blocks A and B of HH-02 Garden City FH-02, this project was formerly Alaska Garden City (Dai Mo, Tu Liem, Dai Mo Ward, Nam Tu Liem District). The original investor of the project was Alaska Real Estate Corporation.
By August 2013, the project was transferred 99% (equivalent to nearly 13,2 million USD) capital to FLC Group and was renamed FLC Garden City. The project portfolio includes 1,638 apartments and 153 villas and townhouses.
Thus, after many years of staying motionless, up to now, two buildings under this project have been restarted and opened for sale.
Similarly, CT5 building in CT2, Urban Expansion of Van Khe (Usilk City) also reappeared in the market after a long time of immobility. This is a project with a total of 752 apartments.
The project was invested by Song Da Thang Long Joint Stock Company, which was started in late 2008 but could not be completed. Recently, Hanoi has approved the Song Da Thang Long Company transfer CT2-105 Usilk City Court for Hai Phat Thu Do JSC.
However, more than a year ago, the entire project was inspected due to signs of legal violations such as improper capital mobilization, progress was delayed for many years, etc. Until now, the inspection conclusion about this project still is a question.
Meanwhile, in Ho Chi Minh City, after about 7 years of “dying”, Kenton Residences project has just been revived by the Construction – Manufacturing – Trade Company “resurrected” as the new name of Kenton Node Hotel Complex.
Vu Anh Tam, Chairman of Tai Nguyen Corporation, said that during the quiet market, the company has used many solutions to solve difficulties, including the design changes, the combination of housing with Service, notably the hotel category more than 500 rooms at the project.
Many rescue solutions
According to HCM City Real Estate Association (HoREA), in about 1,200 real estate projects in HCM City, about 500 projects are in “hibernation” status.
HoREA recommends the implementation of the “5 house chain” coordination mechanism (project developer – contractor – supplier of materials, equipment – bank – state). Together, these entities will create the strength to promote the transparent, healthy and sustainable development of the real estate market, especially the “dead clinical” project, wasting capital, land resources.
Mr. Pham Thanh Hung, Vice President of CEN Group, said that each project has a “disease”, such as wrong product position, investors run out of capital, get money from other customers work, etc. There isn’t a solution for all “premature death” projects, which vary from project to project.
“In order to co-invest in” project “projects, we have to study very carefully, especially to meet the partners they have a desire to cooperate really open, sincere that is the prerequisite for success, “Hung said.
Tran Trong Tuan, Director of Construction Department of Ho Chi Minh City, also said that to solve the unfinished project, the unit has proposed that the city has a mechanism for enterprises to adjust the boundaries of the project land with compensation. However, it is necessary to ensure synchronous infrastructure in traffic, water supply and drainage and lighting.
If the investor has strong financial resources and wants to continue developing 100% of the project, local authorities will have to help the investor compensate for the remaining area. In addition, if the investor is unable to continue the project, the project will be withdrawn and tender will be organized and other investors will be invited to make the capital withdrawal to the former investor and put the land into operation.
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