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VietNamNews

Investors buy still-unfinished apartments

Update: November, 25/2014 - 08:57
Local investors have purchased property projects facing financial difficulties to ensure their completion, amid positive market signals for medium-priced apartments since end-2013. — Photo batdongsan.com.vn
HA NOI (VNS)  — Domestic investors have bravely purchased property projects facing financial difficulties to ensure their completion, amid positive market signals for medium-priced apartments since end-2013.

The Nguoi lao dong (Labourer) newspaper quoted Nguyen Dinh Trung, general director of Hung Thinh Real Estate Trading Joint Stock Company, as saying his company had paid attention to the construction of medium- and high-priced apartments because of the availability of funds and the willingness of banks to disburse thousands of billions of dong to the company.

Nguyen Thi Hoa, general director of the National House Organisation Joint Stock Company (NHO), revealed that her company made partial purchases of the projects and entered into deals with the original investors to continue their development.

Next year, the NHO plans to invest triple the amount it has invested in difficult projects this year, Hoa added.

Financial expert Nguyen Tri Hieu explained that, based on their financial status, domestic real estate projects can be classified into three: those implemented on schedule, those suspended for lack of funds and those used as collateral for loans that became bad debts.

Both investors and banks want immediate solutions to the second and third kinds of real estate projects, Hieu added, and partly attributed the existence of such projects to economic stagnation.

The availability of loans from either foreign financial organisations or domestic banks is advantageous to real property project investors and the domestic real estate market. — VNS


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