|A view of the plans for Gamuda City. The project's investors got approval from the municipal authorities to stop development at Parcel B of Gamuda City after progress was hit by difficulties. — VNA/VNS Photo
HA NOI (VNS)— The People's Committee of Ha Noi has approved a proposal to stop development of Parcel B of Gamuda City, following a request by the investor of the project.
The investor, Gamuda Land Viet Nam, had stopped the project because it faced numerous difficulties in developing the tract.
The committee requested the Ha Noi Planning and Architecture Department to adjust the plan of the project according to a directive to move existing residential areas and to find other investors to develop Parcel B under the building and transfer (BT) mode.
Gamuda Land Viet Nam LLC General Director Cheong Ho Kuan said in order to implement the project, the land clearance and compensation had to be implemented by local authorities, specifically Hoang Mai People's Committee and Hoang Mai Land Fund Centre. The developer has to advance the fee for land clearance to ensure progress and he will be reimbursed for that amount.
Regarding Parcel B of Yen So Park project, due to changes in regulations that dramatically increased land compensation costs from US$20 million for both Parcel A & B (allowed in the IC dated Dec 3rd 1997) to an estimated $150 million for only Parcel B, the developer was not able to advance the compensation amount for the authorities to clear the land, he said.
"According to the Document 140/VP-UB on 8/7/2014 issued by HPC, Parcel B will work in the BT mode now. In case the local authority completes the land compensation for Parcel B, Gamuda will pursue the project. The change of investment mode for Parcel B is under the HPC's jurisdiction and the developer has to comply with the HPC's decision," Cheong Ho Kuan said.
Regarding the local property market, Kuan said the first half of this year witnessed an increase in property transactions, particularly in high-quality homes at affordable prices, in both landed and apartment segments.
Buyers invest in quality products of credible and committed developers who showcased their ongoing projects with basic facilities and amenities, he said. — VNS