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Stalled projects likely to be re-sold

Update: February, 09/2015 - 07:51

"Novaland [for instance] acquired several projects in HCM City including the Lexington, Galaxi 9, Icon 59, Tressor, and Rivergate," Chau said. — File Photo

HCM CITY (VNS) — The trend of selling stalled property projects to new investors will grow strongly this year, helping the market revive, the chairman of the HCM City Real Estate Association has said.

Le Hoang Chau told a recent review meeting of the association that there are around 1,400 projects in HCM City of which almost half have been suspended, offering acquisition opportunities.

He expected the new Law on Real Estate Business, which takes effect in early July, to facilitate this.

Last year many stalled housing projects changed hands or saw investors buy stakes.

"Novaland [for instance] acquired several projects in HCM City including the Lexington, Galaxi 9, Icon 59, Tressor, and Rivergate," Chau said.

Hung Thinh bought out projects such as Thien Nam, 12View, and Thoi An while Dat Xanh acquired CT 15, Riverside Garden, and Green City.

Foreign companies were also part of the trend. Japan's Creed Group has invested several projects by Nam Bay Bay Investment JSC, buying out City Gate Towers and picking up 50 per cent stakes in two other projects — NBB Garden II and III.

Asked about the city housing market, Chau said while it is not yet out of the woods it is on the path to recovery.

He said apartments of 70sq.m or less priced at around VND15 million per square metre (US$700) would see stable demand and growth, and high-end properties in good locations and with reasonable prices built by prestigious developers would also have takers.

The amended housing and real estate laws that will take effect in July will facilitate market activities including by foreigners, who can buy units in commercial housing projects.

The Law on Housing stipulates that total ownership by foreigners should not exceed 250 individual houses in a ward or 30 per cent of condominiums in case of an apartment block.

Chau said the Government should have separate policies for areas with high density of foreigners like Ha Noi, HCM City, Da Nang, Khanh Hoa, Binh Duong, and Dong Nai. — VNS

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