Binh Duong tightens control over commercial housing projects

The southern province of Binh Duong has seen the boom in housing projects resulting from high need of residents. However, the “hot” growth of the domestic property market has led to recently blatant violations.

Binh Duong tightens control over commercial housing projects

According to the provincial Department of Construction, more than 358 housing projects in 4,500 hectares have been so far licensed.
Nevertheless, 216 projects of them have been deployed by 2015 and construction of additional 53 projects was started by the end of 2018 whereas the other property developers faced setbacks including shortage of capital, not enough legal paper and investors’ limited ability.
Though big enterprises can be counted on the fingers of one hand, housing projects have been mushrooming in towns Thuan An, Di An, Tan Uyen, Ben Cat and Thu Dau Mot to meet locals’ and immigrant workers’ demand.
Additionally, property firms from Ho Chi Minh City and neighboring province of Dong Nai moved to Binh Duong Province to sell land, villas and condominium. Big and small investors rushed to Binh Duong triggered the excited property market and prices of houses have gradually increased in short time.
For instance, prices of land and an apartment in Thu Dau Mot Town have surged by 30 percent to 50 percent compared to the middle of 2018.
Boom in the housing market in Binh Duong province has arisen violations and authorities had to pay visits to construction site. In 2018 alone, 19 inspection teams have paid unscheduled visits to 1,494 sites in the province and collected administrative fines of over VND2.4 billion ($103,485 ) for wrongly advertising the realty products, financial distress or unfinished formalities.
The Department of Construction has revoked two projects including condominium for staffs invested by Nhat Hoa Company and Truong Lam Condominium by Truong Lam Company meanwhile it was considering to withdrawn Cotec Hung Phuoc 2 of Cotec Saigon Company, commercial housing apartment Kha Van Can of Tan Quoc Duy Company and two other projects.
Additionally, the department also ordered 24 realty companies which face financial and site clearance problems to report the progress of their projects, and liaised with related agencies to re-consider the extension of the project.
To enhance its management in housing projects and reduce risk for buyers, the Department of Construction publicized information of legal housing projects in the end of 2018 and warned people to find out information of project investors, legal paper and other things.

By XUAN TRUNG - Translated by NHA CA

Other news