New real estate developments in HCM City. — VNS Photo Bồ Xuân Hiệp

HCM CITY — HCM City authorities have issued an urgent warning over a growing number of real estate projects being marketed and taking deposits before completing legal requirements, vowing inspections and strict penalties for violations.

At a recent press briefing, Huỳnh Lê Công Trường, deputy head of the specialised inspection division at the HCM City Department of Construction, said the agency had received multiple complaints about property brokers advertising and raising funds for projects that have not yet met conditions for sale.

Officials have recorded cases where deposits and “reservation fees” were collected in various forms, despite projects not being legally approved for the sale of off-plan housing.

Among the projects cited are the An Khang (A&K Tower) apartment building developed by OBC Holdings in An Phú Ward, and The Emerald Garden View by Lê Phong Group in Thuận An Ward. To date, neither project has been certified by the HCM City Department of Construction or the former Bình Dương provincial construction authority as eligible for sale, officials said.

Despite this, the department has received reports that brokers from several property agencies have organised sales events, collected deposits and offered capital cooperation schemes linked to these developments.

In response, the Department of Construction has issued a notice to real estate developers, stressing that accepting deposits, advertising or mobilising capital before a project meets legal conditions constitutes a violation of the law.

The department said it will work with other agencies and local authorities to inspect brokerage activities, collect relevant documentation and take enforcement action where breaches are found.

It will also update and publish a list of projects that are not yet eligible for sale to help inform the public.

Developers are required to publicly disclose project information before offering properties for sale and to report transaction activity as soon as it arises.

Project owners are not allowed to authorise third parties to sign deposit agreements, sale contracts or lease-purchase deals on their behalf.

Under current regulations, developers who put off-plan housing or construction works on the market without meeting legal conditions can be fined between VNĐ400 million and VNĐ600 million (US$16,000-24,000).

The Ministry of Construction has proposed tougher penalties in a draft decree, with fines potentially rising to VNĐ800 million-VNĐ1 billion to strengthen deterrence, officials said. — VNS