No fun in the sun for axed coastal projects in Danang

Real estate projects along Danang’s coastline are set to be axed after continual delays

Recently, Danang People’s Committee announced their decision to revoke a range of real estate projects located along the coastline.

Committee Chairman Huynh Duc Tho asked the local Planning and Investment Department to co-ordinate with relavant ministries to withdraw the investment certificates of stalled projects.

“We must take strict steps against these long-delayed projects. After revoking the coastal projects, we will look at projects in the inner city,” Tho said.

He added that nothing can prevent the withdrawal of these large-scale projects, as they have been on ice for far too long already, wasting both time and money for the city.

Under the first round of revocations, The First Class Entertainment Area and Resort, the Surfing and Recreational Sport Training Centre, and the Huy Khanh Entertainment Area will be stripped of their investment certificates.

The revocation of two other projects, the Bai Rang and the Bai Trem Villas eco-tourism sites, are also being considered. The committee has placed the Natural Resources and Environment Department in charge of withdrawing the land areas engaged by these projects, so they can be handed over to the local Land Development Fund for development by competent investors.

Other delayed projects which are not on the list of developments to be axed, are nevertheless facing fines for falling far behind their development schedules. This list includes the Nam Phat Tourism Area, Hon Ngoc A Chau, the IVC tourism area, and The Nam Khang.

The updated report on the status of these projects must be submitted to the city committee by the end of June this year.

According to standing Deputy Chairman of the Danang City Committee Vo Duy Khuong, in a recent inspection of nearly 100 projects in the three districts of Son Tra, Ngu Hanh Son, and Hoa Vang, 15 projects were facing the chopping block, while 80 others had been delayed for a long time and were on a watch list.

Last year, Danang revoked two development projects in the downtown area due to persistent delays.

Officials said that no progress had been made on several projects that were granted permission as far back as 2008.

As of May this year, Danang was in the top 20 cities and provinces attracting FDI, accommodating 331 projects worth $3.7 billion.

According to CBRE Vietnam, in the first quarter of 2015, Danang became home to 13 second home and resort projects which, if completed, will provide more than 700 units in total. From these projects, an average of 48 per cent has already been sold.

Among the major developments to be completed in 2016, The Point (phase 2) is being developed by VinaCapital with 20 units already sold at between $280,000-$330,000 per unit. Also reaching completion in 2016, Vinpearl Villas Ngu Hanh Son will offer 184 units at prices ranging from $600,000 to $700,000 per unit.

CBRE noted that in the first quarter of this year, the performance of the second home and resort market of Danang was quite gloomy with transactions only occurring in some up-market projects such as the Hyatt Regency and The Point.