Thoi Bao Kinh Te Viet Nam (Viet Nam Economic Times) talks with Nguyen Chi Dung, vice director of the capital's Construction Department, about slow progress on new housing developments.
Could you explain the purpose of re-viewing projects in new residential areas and housing development in the capital city?
In the last few years, the real estate market has been facing many difficulties due to the world and domestic economic slowdown. The municipal People's Committee has asked relevant offices and district authorities to review projects on new residential areas and housing developments in the city.
The review aims at evaluating the projects and strengthening State management of the housing and real estate market.
At present, many projects are behind schedule. Do you know why?
Many projects were suspended for re-planning after the capital city's administration boundaries were enlarged several years ago.
After the master planning of the enlarged city was approved, several projects were adjusted in accordance with the master plan and infrastructure facilities, especially projects in old Ha Tay Province, Vinh Phuc Province's Me Linh District and communes of Hoa Binh Province, all of which were merged into Ha Noi.
Several other projects have been facing obstacles in ground clearance, which creates big difficulties for investors.
In recent years, due to both the world and domestic economic slowdown, the real estate market has been quiet and demand for housing has dropped dramatically. Investors had to adjust their investment plans to the market situation. In fact, many suspended projects to change apartment designs or shift from high-end to low-income apartment buildings.
Other investors had weak financial capacity, which led projects to lag behind schedule.
How does the authority handle a project found to violate the Land Law? How is land used after it has been retrieved?
If projects violate the Land Law, they will be handled under the law. Land allocated for projects will be retrieved if the investors do not start the projects within 12 months or are 24 months behind schedule.
However, reasons for slow work will be carefully investigated. If the projects are slow due to objective reasons, authorised agencies will recommend an extension to the city's People's Committee.
Along with many projects behind schedule, there are many unfinished villas and houses in new residential areas. Does the department have any measures to solve this?
In many housing projects, investors sold partly-built houses and villas, but buyers did not complete the houses according to regulations. This wasted money and badly affected city aesthetics.
The city's Construction Department has been urging people to complete the houses according to approved plans. — VNS