Vietnam - More property projects suspended, investors exhausted

Most of realty projects are under the lower progress compared with requirement, Vietnam Construction Association (VCA) reported. A lot of the projects are unmoved or suspended, according to local newspaper Vietnam Business Forum.

Citing the recent survey in Hanoi made by Vietnam Business Forum, Coma Engineering Construction Corporation’s Skylight high-class housing project on a site of 15,534 square meters at No 125D Minh Khai, Hai Ba Trung was kicked off from June 2009 and expected to finish by June 2011. The project includes two 22-story high-class condominium blocks and 14 three-story associated houses. However, only 13 stories of high-class blocks have been constructed till now whilst the location where associated houses were designed remains vacant.

There are many projects such as Hanoi Housing Management and Development Company’s office and housing project at No 187 Tay Son, Dong Da Dist with such a slow progress, which has made many buyers angry. Some buyers are planning to sell their apartments due to the standstill of property projects.

The investor Hanoi Housing Management and Development Company started the work in September 2009 and expected to finish it by the second quarter of 2012 but up to now; only the raw body of the 17-story building has been done. The construction has been going with several tens of workers.

Similarly, construction on Cho Mo trade centre was begun in late December 2008, covering 11,154 square meters at No 459C Bach Mai St, Hai Ba Trung St. The project comprising three 5-25 story blocks, invested by Vinaconex Trading Development Joint Stock Co (VCTD JSC), is expected to be completed by the second quarter of this year but to date only 17 stories of these blocks have been built.

The real estate projects with the same situation are Hapro Service Trade Centre at 11B Cat Linh St, Dong Da St by Hapro Corporation, Usilk City luxury condominium project in Van Khe, Ha Dong District, Tricon Tower (Hoai Duc), SMS Hoang Gia (Ha Dong Dist), Trung Yen Plaza (UDIC), G3AB Yen Hoa (Cau Giay), L3, L4, L5 blocks (Ciputra urban area)…All showed that a lot of investors are exhausted.

The above situation is attributed to the difficulties of investors as well as customers (of property projects) in accessing loans,

According to the research division of CBRE consulting firm, in such a context, buyers have to suffer the biggest losses such as financial damage, opportunity cost, lose of faith, higher investment risk ratio. So customers should be cautious as participating in projects of real estate developers.

VietBiz24

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