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Market grinds to a halt
Hanoi’s real estate market is almost a standstill because of government efforts to fight inflation and restrict non-productive loans.
The developers of Usilk City, Trung Yen Plaza and G3 Yen Hoa residential areas are struggling to complete construction in order to hand over units to buyers this year.
Song Da Thang Long Joint Stock Company’s Usilk City on Hanoi’s Le Van Luong is almost at a standstill. This project consists of 13 modern apartment blocks ranging from 25 to 50 floors. It is designed to supply around 3,000 apartments or enough space for about 10,000 residents.
There are also public concerns about the slow progress at the Booyoung International Residential Area located in Hanoi’s Hadong district. The project has been delayed since 2008 when Hatay, the province where the project was then located, merged with Hanoi.
In October last year Booyoung announced it had permission to continue construction. But, when VIR saw the site this week, the construction site of this $171 million residential development project was quiet.
But a source from Booyoung Vina denied the project was at a standstill. “We are implementing the second block of the project, named CT4 and this block will be finished in 2013,” Le Viet Dung, head of project management unit of Booyoung Vina, told VIR.
According to Pham Sy Liem, deputy chairman of the Vietnam Construction Association, property developers are facing a challenging period. “Due to the market downturn they cannot sell products. Meanwhile, construction material and labour costs are generally rising,” Liem said.
Figures from Vietnam Federation of Civil Engineering Association showed that 99 per cent of the thousands of construction projects underway in Vietnam were behind schedule.
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