Real estate situation differs across Vietnam

While Ho Chi Minh City is trying to play it safe with urban real estate development, Vietnam’s provincial cities are witnessing billion-dollar projects established by private investors. Subsequently, experts cannot seem to predict a clear future for the market in 2020.

A new residential area in Binh Chanh district, Ho Chi Minh City

A new residential area in Binh Chanh district, Ho Chi Minh City

Binh Dinh Province since August 2019 has been a hot spot for investors from multiple sectors, seeing 15 licensed projects with VND36,000 billion (about US$1.5 billion) in capital.

Among them, some of the most notable real estate projects are Grand Center Quy Nhon with a total investment of VND2,119 billion (about US$91 million) from Investment JSC Hung Thinh Real Estate Corporation, and Nhon Hoi ecological urban area with a total investment of VND25,500 (about US$1.1 billion) from Phat Dat Corporation Real estate Development (PDR).

Other big real estate investors include Novaland, the second largest real estate business on Vietnamese stock market, and An Gia Real Estate JSC in Quang Ngai Province.

On the contrary, only five housing projects in HCMC have been approved, according to the HCMC Department of Natural Resources and Environment.

Reportedly, since the 2014 Housing Law took effect on July 01 in 2015, there have been 170 commercial housing projects all across the city, of which only 44 projects with 100% of residential land were approved.

Regarding to projects encompassing state-owned land, although reportedly 124 out of 150 projects have been enabled, administrative roadblocks keep most of their investors in a deadlock.

Mr. Le Hoang Chau, Chairman of HCMC Real Estate Association, has been requesting city leaders to quickly give their decision on projects being inspected to create incentive for investors to complete their financial obligations to the state and continue with constructions to provide enough residential housing for the citizens.

By Luong Thien - Translated by Tan Nghia

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