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|A series of large-scale real estate projects in the south of Ho Chi Minh City are delayed due to legal review, Le Toan|
Ho Chi Minh City People’s Committee asked relevant authorities to research solutions regarding a series of large-scale real estate developments. According to the Ho Chi Minh City Real Estate Association (HoREA), domestic developer AA VinaCapital has asked competent bodies to put through its project Nam Thanh Pho, located in Tan Phu commune of District 7.
The 2,400-squarre metre land plot was leased from Phu My Hung Development JSC in 2008 and paid a one-time leasing fee for the lifespan of the project at nearly $3.8 million. AA VinaCapital had also paid all other related fees to the local authorities, and the investor was given a land use rights certificate in 2010.
Based on the detailed planning approved by the Management Board of the Southern Zone in 2012, AA VinaCapital completed more than 90 per cent of related procedures and was waiting for the go-ahead to start construction. However, it has still not been able to commence construction due to the project investment certificate being adjusted in February 2020, which competent bodies have yet to finalise.
In a document sent to the local authorities, VinaCapital said it had poured more than $19.5 million into the project. “Over the past three years, the company has made every effort to carry out all necessary procedures to start construction as soon as possible. We propose local authorities to approve the adjustment of the investment certificate as soon as they can, helping to create conditions for the project to be licensed for construction and put into operation soon,” it said.
This is just one of 38 projects funded by 29 real estate developers that have been newly assigned by Chairman of Ho Chi Minh City People’s Committee Phan Van Mai to the city’s Department of Construction to coordinate with relevant authorities to deal with. Together, they aim to urgently study and guide investors to wipe out obstacles before the end of this year.
According to HoREA, at least six of the projects are waiting for legal review by Ho Chi Minh City authorities. Many other ventures have been handed over to buyers for many years, but ownership certificates have not yet been released. Without it, users cannot apply for a bank loan and, if they want to transfer the units, the price must be lower.
As for developers, they are not only burdened by investment stockpiles because of obstacles in administrative procedures but also lose opportunities in the context of rising real estate prices. That is on top of the inevitable complaints from buyers that developers also have to endure, affecting their reputation.
It is estimated that Ho Chi Minh City has over 60 projects that have been delayed for at least five years due to administrative procedures. Among those are schemes from developers such as Novaland, Nam Long, Phu Long, Quoc Cuong Gia Lai, and Him Lam. Projects include social housing initiatives and commercial housing ventures.