Property traders get into hot water

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In Hanoi 25 out of 61 real estate trading centres inspected were fined for a variety of reasons. They included developers making false ownership capital declarations, selling villas when their basic shape was not yet completed or raising investment capital exceeding 70 per cent of total investment capital. Of violators there were popular names such as the Century Group’s real estate centre.

In Ho Chi Minh City, 11 real estate trading venues incurred a similar position with the same faults. Among them there were big ones such as those of Quoc Cuong Gia Lai Joint Stock Company or that of ACB Real Estate Services Company Limited.

The Ministry of Construction’s (MoC) chief inspector Pham Gia Yen said these guilty trading centres would sustain fines ranging between VND60-250 million ($3,000-$12,500) depending on violations.

MoC statistics show that since the Law on Real Estate Business became effective from January 1, 2009 Vietnam had licenced around 700 real estate trading centres.

Deputy MoC Minister Nguyen Tran Nam said that after a period of expansionary development the real estate ‘market’ system was gradually shaping up.

He noted it was time to restore order at real estate trading centres through launching close post-licencing inspections.

Nam said the MoC was compiling a draft circular guiding real estate trading centre classification. The draft would introduce appropriate disciplinary measures towards guilty trading centres as well as order a certain amount of transactions each real estate trading centre must handle on a monthly or quarterly basis to stamp out inactive centres.   

The list of 11 guilty real estate trading centres in Ho Chi Minh City

1. Proland real estate trading centre of the Proland Investment, Development Trading Joint Stock Company, 741 Tran Hung Dao, ward 1, District 5

2. ACB real estate trading centre of ACB Real Estate Services Company Limited, 29 Nguyen Dinh Chieu, District 1

3. Real estate trading centre of DaFu Corporation, 414 Ung Van Khiem, ward 25, Binh Thanh district

4. Real estate trading centre of Hong Quang Construction and Investment Corporation, 007-008 H1 Hoang Dieu building, ward 9, District 4

5. Intresco real estate trading centre of the Real Estate Investment and Trading Joint Stock Company (Intresco), 18 Nguyen Binh Khiem, Da Kao ward, District 1

6. Khang Nam real estate trading centre of Khang Nam Investment and Real Estate Joint Stock Company, 215 road 9A, Trung Son residential area, Binh Hung commune, Binh Chanh district

7.  Nha Viet real estate trading centre of Nha Viet Investment, Construction and Trading Joint Stock Company, 259 road 7, Binh Tri Dong B ward, Binh Thanh district

8. HDTC real estate trading centre of Housing Development and Trading Company Limited (HDTC), floor 1, An Phu tower, Hanoi avenue, An Phu ward, District 2

9. BCCI real estate trading centre of Binh Chanh Construction Investment Joint Stock Company (BCCI), 550 Kinh Duong Vuong, An Lac ward, Binh Tan district

10. Quoc Cuong real estate trading centre  of Quoc Cuong Gia Lai Joint Stock Company, 472 Nguyen Thi Minh Khai, ward 2, District 3

11.Chuong Duong real estate trading centre of Chuong Duong Joint Stock Company, 225 Ben Chuong Duong, District 1.