Although it is expected to develop as Thu Thiem new urban area real estate in the North West of Ho Chi Minh City is very weak. The scarcity of land, causing the fever “real estate” is only the price of investors.
The North West gate of Ho Chi Minh City is an important traffic hub linking Ho Chi Minh City with many provinces such as Long An, Tay Ninh, Binh Duong and Cambodia. This is also an important way for people in many suburban districts to go to the center.
Thanks to this position, the Northwest is planning the investment in infrastructure, opening the wave of real estate investment in the coming time. Trans-Asia traffic projects – Highway 22, Provincial Highway 8, National Highway 1A, metro line No 2 connects Ben Thanh – Tham Luong, metro No. 4 connecting District 7 – Thanh Xuan, An Suong bus station is upgraded and started building a whole new look for the area.
The development plan of the Northwest region from now to 2020 with the land fund of more than 10,000 hectares with many residential areas, universities, multi-functional business centers. All waiting for the “wave” of real estate on the northwest.
Stop selling and discount
Before this fact, many investors have jumped into the land project business in the Northwest. Along the lines of Truong Chinh, Cong Hoa, National Highway 22, National Highway 1 … in Binh Tan district, Tan Phu district 12, Hoc Mon district has many billboards with the content of “selling townhouses, land projects A ground floor apartment with a price of VND300 million, VND100 million of interior decoration, 70% of bank loan, new house, “pink” or “land” only from VND200 million.
But now, many investors are facing the business situation is weak. For example, in an urban ecological project with a size of 75ha, located in the urban Northwest. Opened in early June but so far, this project is currently suspended construction. When we contacted to see the land then the staff replied, currently not traded. When there is information open sales will actively call the customer.
As explained by the owner, the project is suspended construction because of rainfall more than every year, the intensity of rainfall is also higher. “This is a perfectly objective reason, and we will execute the project when the weather returns to normal,” the representative said.
Accepted selling losses
With an area of over 48 hectares, total investment capital of more than VND 1,000 billion, Sen Village Vietnam has sold all its products. This is a product of Phuc Khang Corporation in Duc Hoa district, Long An province. However, many buyers of land in Sen Village are accepting losses to sell off the land.
Le Thi Thanh owns 2 land lots here in 2015 for VND730 million. After 1 year of investment, she had to sell 2 lots of land at VND650 million but nearly 3 months have not been bought.
“At that time I heard broker said, only 3 months after this land will increase about 20% should decide to buy. Now we have been buried for more than a year but we do not see the output so we have to sell the hole, “Thanh said.
The fact at the Sen Village project shows that, despite selling all the products, there is no one in the house, the grass grows luxuriant. In Long An there are many urban projects are abandoned, although the internal roads, lighting system has been fully invested.
Many people buy land at other projects such as Long Hoi Residential Area of Thu Duc Housing Corporation, Thanh Yen Residential Residences, Nam Sao International Group’s five-star resettlement and commercial complex, urban area Phuc Long Garden, Long Kim townhouse project, An Thanh garden house … also accept to sell losses to recover capital.
These projects are very sparse populations. Four weeds are high up the human head, even the project is also present cows.
It is Not suitable
Report of the Department of Planning and Investment of Long An province shows that there are more than 50 residential projects, urban areas, housing are deployed in Duc Hoa, Tan An … with a total area of nearly 3,000 hectares. In particular, the number of residential projects invested complete infrastructure just count on the finger.
The rest, more than 80% of the project failed to make compensation for clearance or construction of infrastructure and then abandoned because of not sold. The failure of these urban areas is to be built in the heart of industrial parks, which are only suitable for workers’ accommodation rather than commercial housing.
Other causes make these urban areas become a place of cattle … because the infrastructure and services connected to the center of Ho Chi Minh City are not synchronized. The selling price of the projects is too high compared to living standards of people around the project.
Talking with us, economist Nguyen Tri Hieu said that as other emerging markets, Vietnam real estate is suffering a lot of fluctuations. Therefore, real estate in many projects loses value after 1-2 years is normal.
“Many real estate firms keep rampant ads in that area, which is causing the market to react misleadingly. Many people buy land in the movement with high price is the ability to hug big hat, “Hieu said.
People in Ho Chi Minh City only buy speculation, but no need. However, letting money die on a piece of land from 8 to 10 years of profitability is something that many investors do not choose.
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