Green light for Danang housing plan

Daewon Company’s proposal consists of 12 apartment blocks of 17 to 21 floors for sale and lease on an area of four hectares by the Han River in Hai Chau district.
This is the first foreign-invested housing project for sale submitted to the Danang People’s Committee.
Daewon would like the project to be 100 per cent foreign-owned and to complete construction of the first phase within two years.
Local authorities, aware that in the past a number of property projects in the area have been ‘all talk but no action’, required Daewon to submit a written statement about their commitment to the project’s progress.
The People’s Committee has set out tough conditions, asking the property developers to put in a mortgage of $2 million as a guarantee before proceeding with the project.
While declining to comment on the guarantee, Lam Quang Minh, director of Danang Investment Promotion Centre, told Vietnam Investment Review that Daewon aimed to pour around $80 million into the development.
Minh said the Korean firm planned to develop the project in four stages but the city authorities expressed a preference for it to be carried out in two.
He added that discussions were still underway between the local authorities and the developers before they officially applied to the Ministry of Planning and Investment for a licence.
Daewon is also in partnership with Thu Duc Housing Development Company in developing a $20.5 million residential complex in Ho Chi Minh City.
The development, currently under construction, will feature three 16-storey blocks with more than 400 apartment units.
The project has a legal capital of $10 million, of which, Daewon contributes 60 per cent while Thu Duc chips in the rest.
Thu Duc general director, Le Chi Hieu said the apartments would be high-end with modern facilities and amenities and each unit would have a floor area ranging from 70 to 140 square metres. The complex will provide parking lots for around 140 cars.
Daewon is also seeking a licence from the Ministry of Planning and Investment to develop another residential project in Ho Chi Minh City with a total investment of $29 million.
Meanwhile, Danang authorities have lost patience with several large property projects yet to get off the ground in the area.
Two months ago the authorities revoked the licence for a $15 million hotel and office complex proposed by Viglacera.
The building material producer had acquired the land but was unable to seek financiers for the development.
Danang also got tough on an Australian-bankrolled hotel project which was granted a licence almost two years ago but has yet to see a brick been laid on the site.
Now the People’s Committee has set next January as the deadline for the construction on the $27.6 million property to begin, otherwise the investors would have their licence withdrawn.