Real estate in Saigon with dark corners

Disputes in condominiums are increasing; phase shift in supply and demand in many segments; land prices continue to rise; The project is offered without legal procedures, … There are still too many hidden corners exist in the real estate market in HCM City today.

The project has not completed the legal procedures that have residents living – Is a situation due to poor management in the real estate market in Saigon

Arrive to dark corners to see the dark side of the market

On  21st October, hundreds of residents of Saigonres Plaza apartments were invested by Sai Gon Nam Do Real Estate Company. Residents hung banners, slogans to protest, denouncing violations of the investor. And ask the relevant authorities on the deal, to ensure the interests of residents.

According to the residents living here, the project handed over to the hands of residents in January 2017. But in just March, many items of construction have begun to seriously deteriorate: elevator free fall not less more than 3 times, the ceiling is waterproof, the wall has been peeling phenomenon, … Residents have proposed to the project management since the phenomenon, but not resolved, corrected.

In particular, residents of the project continued to reflect on the protection of Saigonres thugs attack residents. And ask the owner not to violate common property, return kindergarten for residents, …

According to the HCMC Real Estate Association, the city currently has 105 apartments are in a state of conflict between residents and investors on the quality of the works. This is a worrying figure for the quality of new construction works.

There are more than 500 projects that are causing troubles to customers and undermining the city

In addition, there are several projects that have been opened for sale to customers but long time passed. New customers suddenly realized that the project they are living is not full legal procedures.

According to the HCM City Department of Construction, more than 500 projects are under construction. Most of them were construction projects which were partly implemented but after the crisis of the real estate market in 2007 and 2010, they had to stop construction again. The reason is that because the owner has no more money to be able to continue the project.

In there, the project has sold to the people, people even paid enough. But then the investor can not hand over the house, because there is no capital to deploy to delay progress.

For example, some projects such as residential at 584 Tan Phu, PetroVietnam Landmark project (District 2, HCMC) … Because no capital investment, investors should abandon the project. Customers who have bought apartments now do not know where to find their home.

Besides, the market also appeared the phase difference supply and demand. In the first nine months of 2017, 61 housing projects have been set up in the future as the Department of Construction has confirmed the eligibility for capital mobilization. With a total of 28,640 units (of which 25,320 are apartment and 3,319 are low-rise).

In structure, the high-class segment overwhelmed with 7,451 units, accounting for 26% market share; The average segment was 13,976 units, accounting for 48.8%. Of which, the segment has only 7,212 units and a low rate of 25.2%.

The 25% figure is not too small in the market share. However, in the current market in Ho Chi Minh City, the demand for affordable housing is the most popular segment. There should be an excess of apartments in the luxury segment and lack of apartments for the popular segment.

The market still has many big worries from brokers

Mr. Bui Van Hieu – Head of HCMC Office of Construction said. The Department is reviewing the overall development of the market. Particular attention is paid to the “virtual price” of land reclassification in early 2017 in some districts and districts.

However, the current supply of land on the market is scarce. There should be a lot of concern about land availability going back to 2018.

In addition, there are too many brokers formed in the city are creating a certain concern.

In particular, Mr. Hieu predicts that the market has appeared signs of fraud by some real estate brokerage firms created. For example, renaming projects. The brokerage firm after receiving the project distribution of the investor. Then change their name, change them to become his project.

In District 9, Binh Chanh, Cu Chi and Hoc Mon, the brokerage firm changed the 1/500 master plan. They also have the ability to draw more useful to attract customers.

Many brokers also arbitrarily raise the price, sometimes 40-50% higher than the actual price that the owner offered to eat the difference.

Tran Tuong – Chairman of the real estate management Cat Tuong Group said. Many projects introduced by investors when they are high-end projects to push up prices. But when the apartment comes to the customer is not the same as the introduction and the original image.

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