VietNamNet Bridge – Experienced and financially powerful,
foreign investors have also suffered from the real estate crisis in Vietnam.
A lot of foreign invested real
estate projects were registered with huge capital, but they have been left
“immovable” since the day of licensing.
Ha Long Star in Quang Ninh
province, Da Phuoc urban area and Jade Center in Da Nang City or Byooyoung
international residential quarter in Hanoi, has the registered capital of
between 170 million and 500 million dollars.
However, the figures have existed
on paper only. To date, the disbursed money remains very modest. The area
reserved for the Booyoung international residential quarter remains a wild land
over the last six years, since the investor has not found loans from neither
foreign nor domestic banks.
Other real estate projects have
been half-done, or delayed for an indefinite time. These include the
international university urban area and the international financial center in
HCM City registered by Berjaya Group, capitalized at 4.5 billion dollars.
Lacking capital to execute the
projects is the reason most of the investors have cited to explain their delay
in the project implementation. The investors do not think that their products
would be salable in the context of the frozen real estate market.
Meanwhile, An Khanh Company, a
joint venture between South Korean Posco E&C and Vinaconex, though having
sold 1500 villas and 300 apartments of the Splendora project in Hanoi, still
has been put on tenterhooks.
Over the last month, the company
has repeatedly received complaints from buyers about the quality of
construction materials which was believed to be worse than the committed
quality. The customers now want to delay the payment for the apartments and
villas, while having requested to slash the sale prices of the products, since
the real estate price in Hanoi has dropped by 30-40 percent.
The customers, who registered to
buy villas built in the second phase of the project, complained that in order
to obtain the right to buy the villas, they had to buy one more apartment at
the prices of 37-38 million dong per square meter.
Meanwhile, as the real estate
price has dropped sharply, with the sum of money, they now can buy an apartment
with the same quality located nearer the central area of the city.
Since the discussion between
buyers and the investor has not come to an end, the investor still cannot
collect enough money to pay bank debts.
A lot of customers have
reportedly cancelled the apartment and villa purchase contracts they signed
before with foreign investors. The updated report of Vinaland showed that in
the first eight months of the year, only 58 apartments and villas at the
projects invested by the fund were sold.
The projects include the Dai
Phuoc Urban Area in Dong Nai province, the My Gia Urban Area in Nha Trang City,
the villa area belonging to Da Nang Beach Resort and Azura apartment bloc in Da
Nang City.
Seriously, a lot of customers did
not make payment on schedule or have canceled the contracts. As such, if not
including the customers who have run away, only 13 products have been sold.
The Parkcity project by
International Urban Area Development Joint Stock Company, a joint venture
between Vietnamese Vinaconex Hoang Thanh and Malaysian Perdana Parkcity, is
believed to face the most tragic situation. There has been no sign showing that
the investor would resume the project implementation after it has built the
foundations of the villas.
DNSG
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