VietNamNet Bridge – Once advertised as the biggest real estate
project in the southern part of Hanoi, Gamuda City, a new urban area expected
to be located in Hoang Mai district, remains a vast weed filled deserted land.
In December 2009, Gamuda Land
Vietnam, belonging to Malaysian Gamuda Berhard Group, officially received the
license to implement the project on Yen So Park – one of the two projects
undertaken by the company under the mode “exchanging land for infrastructure.”
The component project would be a part of the mammoth project on developing a
new urban area, a miniature new city, next to the park.
Expected to cover an area of 200
hectares, Gamuda City is believed to be developed into a big urban area with
international stature in Hanoi, with two residential quarters, amusement park
areas and one high grade shopping mall.
Therefore, the information that a
lot of investors, who injected money in the project, have been offering to sell
their contributed capital in the projects with preferential conditions, has
surprised many people.
An investor said he tries to
bargain his contributed capital to escape from the project, which is expected
to last nearly 10 years. He said that residential quarters would be ready in
many more years, during which a lot of problems may arise. It would also be
difficult to sell the apartments here, because clients now are interested only
in the projects to be completed soon, while they would turn back to the
products which remain on paper.
Another source said that
investors have recently got started when hearing the information that Gamuda
City is situated on the weakest geological area of Hanoi which is in the high
danger of depression. This has prompted investors to run away from the project,
even though the investor, after carrying out the field work, came to the
conclusion that high rise buildings can be set up here.
Cheong Ho Kuan, General Director
of Gamuda Land Vietnam, said the total investment capital of the project is
over five billion dollars. To date, the company has disbursed 200 million
dollars, mostly for the implementation of the two component projects – the park
and the waste water treatment plant.
Meanwhile, the capital disbursed
for the residential quarters in the project remains modest. The investor still
has not finished the site clearance work, mostly because the local landlords
refused the low compensation levels suggested by the investor.
Meanwhile, the investor affirmed
that the compensation levels were approved by the Hoang Mai district’s
authorities.
Even though the site clearance
work is yet to be completed, the investor still has put the accommodation items
on sale, which is a violation of the Real Estate Business Law.
In the open letter to investors,
the real estate project developer wrote that Gamuda City would turn the
southern entrance gate to the city into one of the most bustling commercial hub
with two modern residential quarters, and modern shopping malls which would
help stimulate investments.
The project developer emphasized
that no other urban area in Hanoi is situated on such advantageous position
like Gamuda City in the southern part of the capital city, at the entrance gate
to the city, which faces important areas of the city.
However, the dreamful city just
remains on paper, while the land plot for the construction site, remains a vast
deserted land.
When asked about that, General
Director of Gamuda Vietnam said the project developer has the long term vision
of 5-10 years when developing the project.
“The temporary difficulties of
the property market will not be able to strike Gamuda down,” he stated.
However, people still have doubts
about the statement, especially when Gamuda Land has terminated the contract on
advertising for the project with a media company because of financial problem.
Kim Chi
Business & Investment Opportunities
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