Ho Chi Minh City reveals mortgaged housing projects

The municipal Department of Natural Resources and Environment has announced the names of 77 real estate projects, including apartment complexes and residential areas across the city, which have been registered as mortgaged at local land offices.

The list has been submitted to the Department of Construction, the Department of Justice, and the People’s Committees of 17 districts across Ho Chi Minh City as well as publicized on the official website of the municipal Land Registration Office.

This is the first time in Vietnam that mortgaged realty projects have been announced publicly with names, addresses, contracts, relevant organizations, and mortgage registration dates attached.

Most of the buildings were mortgaged under credit contracts inked in 2015 or 2016, while some properties have been registered as security for loans since 2010, including several apartment buildings in Tan Phu District.

Investors have already sold their flats but have yet to provide their residents with sufficient paperwork proving their ownership of the homes.

According to Pham Ngoc Lien, director of the Land Registration Office under the municipal Department of Natural Resources and Environment, developerss often sell their apartments before construction finishes as they need capital to fund their projects.

However, the flats are only available for purchase once their conditions are approved by the Department of Construction.

It is recommended that buyers undertake careful research before placing their trust and money in housing projects, Lien said.

“If the property is registered as mortgaged, homeowners have the right to require that investors supply them with a written document confirming the deletion of the mortgage attached to their purchased flat,” the director said.

Revelation

Following a probe by Tuoi Tre (Youth) newspaper, many residents have expressed concerns after discovering their apartment buildings were on the list announced by the Department of Natural Resources

D.T.H. bought his flat in an apartment building in Tan Phu District in August last year and was promised an ownership certificate after one year.

Since then he has discovered that the property had been mortgaged, and so H. and his neighbors have filed several requests to seek clarification from the developer as well as local authorities.

The release of the list also worried many project investors as they feared clients would shy away from purchasing their apartments.

Meanwhile, a representative of a housing project in District 7 expressed his support for the announcement, saying that buyers could rest assured thanks to the disclosure.

According to the source, homeowners in his apartment complex have all been provided with documents of mortgage deletion.

Several property experts said that the list did not cover all projects that were mortgaged in the southern city.

Director Lien said that some projects have not entered their capital mobilization phase, and adding them to the list would compromise their confidentiality.

A survey is expected to be carried out to collect ideas from authorities, investors, and buyers in order to figure out ways to improve the list, Lien added.