City real estate market back on track
HCM CITY — Many real estate projects in HCM City are back on track after long delays caused by a shortage of capital.
As of the end of last month, for example, an apartment building in Go Vap District invested in by the Khang Gia Joint-Stock Company reappeared on the market with many promotions.
The project, which was to begin at the end of 2008, has completed only two out of three buildings.
At the same time, the company officially re-opened its sale programmes with 321 apartments at the price of VND11.2 million (US$530) per one square metre.
Another project in Go Vap District, invested by Gia Dinh Real Estate Company, has also officially introduced model rooms after a long delay.
Because of a shortage of capital, work on the project, which began in April 2010, had been postponed.
Many other projects in the city have also resumed, including the Investment and Construction 557 Company Ltd's apartment building project in Tan Phu District.
These projects were able to be placed on the market because of support from banks as well as mergers and acquisitions.
The Louis IX – Bay Hien project in Tan Binh District is one example.
Initially, Thang Long Company invested in the project, but after a long delay because of capital shortage, the company was sold to Long Hung Phat Company Ltd, which has restarted the project.
Although many projects are now back on the market, they face tougher requirements for selling.
In the past, investors could sell their products after finishing the foundation, but now the house frame as well must be completed before selling.
In addition, to sell products, investors must prove their financial capacity, said Doan Chi Thanh, general director of the Hoang Anh Sai Gon Real Estate Company.
Nguyen Khanh Hung, the deputy director of Dat Xanh Group, which is involved in many real-estate projects, said that previously he needed only to check the legality of a project, but now he must meet consumers'demands about the completion schedule before making a sale. — VNS