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Tardy projects set to lose their land

Update: July, 15/2014 - 09:06
The Sai Gon Garment Manufacturing Trade Joint Stock Company and the District 5 Housing Development and Management Company, for instance, were allotted 2,100sq.m of land at 107-107B Tran Hung Dao Street, District 5, for a high-rise building in 2008.— Photo sggp

HCM CITY (VNS)  — After a two-year inspection of delayed projects, the HCM City People's Committee has decided to revoke allocation of 5,395ha of land for 536 of them.

It has already taken back the lands allotted for some of the projects, and said any of the remaining investors wishing to continue have to prove their capacity to do so and commit to a schedule.

The 536 include housing projects, amusement centres, schools, and others, and have been delayed for many years, Sai Gon Giai Phong (Liberated Sai Gon) newspaper reported.

The most common problems causing their delay were investors' financial difficulties, land clearance, and lack of demand.

The Sai Gon Garment Manufacturing Trade Joint Stock Company and the District 5 Housing Development and Management Company, for instance, were allotted 2,100sq.m of land at 107-107B Tran Hung Dao Street, District 5, for a high-rise building in 2008.

But with the developers failing to make progress on it, the land has been taken back by the city authorities.

Most of the cancelled projects are in outlying districts like Binh Chanh, Hoc Mon, 9, 2, 7, 12, and Tan Phu.

Tran Trong Tuan, director of the Department of Construction, explained how investors of the delayed projects could continue to develop them if they wished to.

In case of housing developers who have not paid land compensation or cleared the site, the department has apprised them about the procedures involved in applying to the People's Committee.

In case of those that have paid compensation and cleared land, the department and district people's committees would appraise their capacity to continue or seek approval from the city People's Committee, he said.

Nguyen Hoai Nam, deputy director of the Department of Natural Resources and Environment, said since there were a huge number of projects, inspecting them had taken a long time.

Resolving the issue must be based on securing the benefits of all parties concerned — the Government, the public, and the investors — he said.

The housing market is in a slump, banks are wary of lending to the property sector, and many projects lack infrastructure, making it difficult to speed up their progress, he said.

There should be policies that allow extending projects by two to three years and making land use right fees reasonable, he said.

The current rate based on market prices is too high and inflates their cost according to investors. — VNS

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