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Builders abandon unfinished projects

Update: February, 07/2013 - 00:10

HCM CITY(VNS) — The continuing slump in the property market, now four years old and counting, is forcing developers to sell out unfinished projects to other developers.

It is benefiting both the sellers, who can finally get a major portion of their money back, and buyers who do not have to go through the rigmarole of applying for licenses and acquiring land.

Luong Tri Thin, general manager of Dia oc Dat Xanh Company, said 2013 would see lots of developers, both domestic and foreign, selling their projects.

Singaporean, Malaysian, and Japanese developers were interested in the Vietnamese real estate market, and were looking to snap them up, he said.

"Japanese investors are eyeing buildings in major cities, Singaporeans are interested in housing projects, and Malaysians are looking to develop urban areas," he said.

In the second half of last year Hoang Quan Consulting Trading Service Real Estate Corporation bought four projects, three of them housing.

This year it has bought a part of the 3.53-ha Nam Hiep Thanh housing project in the Phu My new urban area in southern Ba Ria – Vung Tau Province developed by Nam Hiep Thanh Investment Joint Stock Company.

Hoang Quan acquired 1.168ha, named it Cinderella 2, and will build terrace houses and villas.

Hoang Quan Corp also intends to buy more projects that have "soft" price to diversify their products.

Dia oc Dat Xanh announced plans to buy two apartment projects in HCM City, and wrapped up purchase of one of them at the end of last month, the 3.6-ha Sunview 7 in Thu Duc District.

The VND1.2 trillion project, developed by Sai Gon General Service Company (Savico), consists of five blocks of 20 floors with around 2,000 apartments, and is meant for low-income earners.

The firm is negotiating for the second, a 3.2-ha project in Go Vap District with four blocks of apartments.

At the end of last year it had bought two other apartment projects in HCM City — in Go Vap and Thu Duc Districts — from Thien Loc and Gia Phu real estate firms.

Thin said the company would continue to look at other feasible projects for buying.

The sellout is also happening in the north.

Thu Duc Housing Development Corporation recently sold its VND80 billion Dong Mai project in Ha Noi's Ha Dong District.

On January 16 Vinaland, a property-focused fund, sold its project at 30 Nguyen Du Street, Ha Noi, to tobacco company Vinataba for US$3.3 million.

Song Hang Company bought a share in the Hatoco apartment project on Tran Phu Street in Ha Dong from Ba Dinh Land for VND500 billion ($23.8 million). — VNS

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