Vietnam - Supply in HCM City's real estate market forecasted to decline

At present, many real estate projects in HCM City have been implemented in slow pace or halted. In the coming years, there would be shortage of supplies.

Investors in most of real estate projects in HCM City have had to adjust the implementation plan for their ongoing projects due to difficulty in markets, low liquidity.

In Tan Phu Dist, many projects had been kicked off construction works but then implementation process was halted. In March 2011, some real estate exchanges announced to offer products in Hiep Tan Apartment Complex and kept the deposit for some customers with commitment of signing the sales contract in May 2011. However, recently, some customers came to Phu Nhuan Economic Development Joint Stock Co, the distributor of Hiep Tan project to ask for refund because the company did not follow the commitment with customers.

Kenten Residences project (conducted by Tai Nguyen Co as the main investor) was one of the largest high-class apartment complex projects in Nha Be Dist with over 1,600 apartments. The raw construction on some of the apartment blocks has been almost completed, but the construction work has been halted for months.

Meanwhile, some large-scale projects haven't been kicked off construction works, despite having detailed construction plan up to now, for example Vietnam Financial Centre (VFC) project that Berjaya Land Berhad Co, under Malaysia-based Berjaya Group was the main investor.

The project has total investment capital of $930 million, to be sited in an area of 6.8 hectares. It would be a complex of five towers of 39-48 storeys after construction. However, the construction hasn't been started.

As planned, in early 2012, Vietnam Real Estate Co (VNI) would kick off construction on the high-class apartment complex of Vinaland Tower in Dist 7, HCM City. However, this project may be delayed due to gloomy real estate situation.

Nguyen Van Duc, vice director of Dat Lanh Real Property Co stated that there would be few new projects to be kicked off in the near future. Therefore, it was predicted that there would be shortage in real estate market in HCM City in the near future.

VietBiz24

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