At least 327 property projects in Ho Chi Minh City might be revoked and halted from July 1 when the revised land law 2013 and the Government’s Decree 47 take effect.
|The long-delayed Van Phuc Riverside Residence project has been changed into a golf course in Thu Duc District, HCMC (Photo: SGGP)|
People’s committee of authorized levels will revoke land of half-done projects and instruct investors to stop implementation, according to the decree issued on May 15.
HCMC have extended deadline for investors of 479 projects to complete site clearance and compensation since last year. However, up to 327 have failed to do so.
Several of them have been approved for the last ten years in the southern part of the city including Happy City, an amusement and park site in Binh Hung Ward, Binh Chanh District.
Among the possibly revoked projects is Phuoc Kien residential area in Nha Be District, which compensation work has completed 70 percent. Its investor has invested over VND1.5 trillion (US$71 million) in compesation and clearing and leveling the site.
That is a bad news for real estate companies, how the money that investors had spent on the projects would be, said Nguyen Xuan Quang, chairman of Nam Long Investment Company.