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Frozen property market forces investors to change purpose of projects
A number of real estate investors have been seeking to change their commercial housing projects into social projects such as hospitals or low-income housing.
Recently, Binh Duong Building Stone Ltd. Company got approval from the HCM City Department of Planning and Architecture to change plans for its 14,000-square metre high-end apartment project named Thai Binh Plaza and make it into a general hospital. The hospital will focus on diagnosis and treatment of patients suffering from cardiovascular problems and cancer. This comes amid heavy hospital overload in the city.
The investor was required to complete the plan of transfer as well as to refit the 360-apartment project to make it suitable for the hospital before submitting their plan to the municipal People’s Committee.
Hanoi Investment and Construction Joint Stock Company is seeking the Hanoi People’s Committee’s approval to turn part of its expanded Trung Van urban area project in Tu Liem District into low-income apartments.
The expanded Trung Van urban area covers 15.6 ha, with a total investment capital of nearly VND400 billion ($19 million). According to the investor’s proposal, 55pct of the apartments will be built for low-income families, with the rest for commercial use.
City authorities have asked the Department of Construction and local agencies to consider the situation and submit a report to the committee in January.
In the context of current difficulties in the property market, commercial housing projects are finding it more difficult to attract customers, while there is quite a high demand for affordable housing. However, according to an official from the Ministry of Construction, not all projects can be permitted to change their intended purposes.
He added that only projects which were nearly finished were currently likely be cleared for such a change, while those which were still at the site clearance stage and had high costs must be carefully considered.
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