Central coast property developers face uphill development struggle
HA NOI (VNS)— Real estate developers in the central coastal province of Binh Dinh's are struggling to complete ongoing projects due to a lack of funding.
While the province remains an attractive destination for property developers, some real estate projects have failed to sell out their villas, especially in high-end development projects, to ensure returns on their investment.
The An Phu Thinh new urban area developed by An Phu Thinh Development Investment Construction And Tourism JSC with a total investment capital of VND2.450 trillion (US$116 million) covers an area of 153ha in Dong Da and Nhon Binh precincts of Qui Nhon City in Binh Dinh Province.
The project was divided into three stages starting in 2010 and slated to finish in 2018, but work has progressed at a sluggish pace due to increase rates for bank loans and the frozen real estate market.
Vung Chua Green Eco Village in Qui Nhon City's Gheng Rang District, a project owned by Kim Cuc Construction and Investment Co with total investment capital of VND1.458 trillion ($69 million), also facing the same difficulties.
Nguyen Thi Kim Cuc, General Director of Kim Cuc Company, said the project covered an area of 107.3ha and construction work was divided into two phases.
The first phase consists of a trade and service centre, high-rise buildings and an international school and high-end urban areas that are expected to completed by the end of next year.
Cuc said the project played an important part in Qui Nhon city's master planning scheme and she was determined to continue its development. While initial construction work was completed and villas were put on sale, the frozen property market and the lack of finance hindered the continued development of the project, said Cuc.
Nguyen Thanh Hai, deputy director of Binh Dinh Province's Planning and Investment Department, blamed the slow progress of property projects in the province to limited finance as the property market was cooling down.
Hai said the economic downturn had a great impact on consumers. As a result, property developers in the province were dealing with great challenges as sales decreased.
It was expected that in the time to come the property market would see a rebound, allowing investors to quickly reclaim their investment capital, said Hai. — VNS