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Stalled housing projects get new lease of life

Update: May, 21/2014 - 08:31

Khahomex Savico Tower in Ben Van Don Street, District 4, opposite the financial centre in District 1, was located at a prime place, but construction stopped for four years. — File Photo

HCM CITY (VNS) — Many housing projects that had stalled for a long time in HCM City have come back to life, albeit with name changes and support from other investors.

Khahomex Savico Tower in Ben Van Don Street, District 4, opposite the financial centre in District 1, was located at a prime place, but construction stopped for four years.

It was promoted by a joint venture between the Sai Gon General Services Company (Savico) and Khanh Hoi Import-Export Company (Khahomex). Now called Icon 56, work has resumed and the two companies have taken on board a new partner — Novaland.

It will have 300 units, which will cost a minimum of VND2 billion (US$100,000) and have all kinds of facilities like swimming pool and shopping mall.

Novaland has also joined the Galaxy 9 project in District 4 invested by the Southern Rubber Company. With an area of nearly 7,500sq.m, the project will have two 21-floor towers.

Novaland has also bought the Lexington in District 2 from Dai Hung Phu Real Estate company, and its investment in the three developments total around VND3 trillion ($150 million).

The No 27 Apartment project in District 12 has experienced a similar fate. Kim Tam Hai began construction in October 2009 and sank VND200 billion ($10 million) to build 16 floors, but could not finish the interiors.

Hung Thinh Real Estate company has now stepped in, investing VND40 billion ($2 million) and taking over the task of selling all the remaining 80 apartments in the project.

But the industry is becoming cannier now and new regulations are forcing them to be more professional.

Nha Hung Ngan Joint Stock company, which recently began building Hung Ngan Garden in District 12, has tied up with specialised selling company Hoang Anh Sai Gon Real Estate market to sell its apartments.

Nguyen Dac Diem, chairman of the developer, was quoted as saying in Dau tu (Viet Nam Investment Review) newspaper, "In the past investors only needed an approved 1/500 master plan to start selling but now that is prohibited."

Only after completing the foundation can developers start selling.

"We have to build sample apartments and work with professional sales companies," Diem said about the current industry trend.

Le Hoang Chau, chairman of the HCM City Real Estate Association, said a project's survival now depends on many factors, and the best way therefore is looking for finance or selling stakes to partners with deep pockets.

But he warned that buyers should carefully study and choose prestigious investors to ensure safety. — VNS

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