Southern property rocked to the core

August 13, 2012 | 12:53
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A string of Ho Chi Minh City realty projects are on the back foot after being hit by economic turbulence.

In Thu Duc district, projects like Song Da Riverside in Hiep Binh Chanh district and Green House in Linh Tay district are delayed.

The Green House apartment project developed by PetroVietnam Power Land Joint Stock Company (PVL) kicked-off construction in mid-2010 and in early 2011 project apartments were offered for sale after completing building of foundation. Construction, however, stopped at this time.

Similarly, top-end office tower BMC-Hung Long project in District 7 developed by Building Materials and Construction Trading Company (BMC) began construction in July 2007 and planned to hand over apartments in late 2009. However, construction is hanging at this time.

Quoc Cuong Gia Lai hi-end apartment project developed by Quoc Cuong Gia Lai Joint Stock Company in Binh Chanh district stopped construction months ago after building the thirtieth floor. A similar situation is witnessed in districts throughout the city.

Not only apartments, large-scale office towers are in the same boat like the case with Vietnam Financial Tower (VFC) project developed by Malaysia-based Berjaya Group’s Berjaya Vietnam.

With $930 million investment, the project seeks to turn 6.8 hectare land plot in District 10 into a modern compound with five office towers from 39 to 48 floors. The project has yet to get off the ground though getting investment certificate in early 2008.

Another Berjaya Group’s Vietnam International University Township (VIUT) project in Hoc Mon district costing $3.5 billion is only in preparation phase despite being licensed in July 2008.

In early 2012 Ho Chi Minh City People’s Committee chairman Le Hoang Quan warned of taking back VFC project’s investment certificate unless its developer took steps to speed up the progress.

Similarly, Northwest Urban Area Management Unit and relevant state agencies many times asked the city authorities to withdraw VIUT project’s investment certificate due to long delay.

Berjaya Vietnam general director Nguyen Hoai Nam said the VFC project developer had spent over VND1 trillion ($47.6 million) to complete site clearance and was waiting for a construction licence. If nothing changes, the project will start construction in early 2013.

By Tang Trien

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