Many unfinished property projects are springing up all over Ho Chi Minh City.
Most projects developed in the boom 2000-2008 period have been deserted although the land prices have surged many times.
There are a dozen of projects invested within last10 years with completed infrastructure and road networks left with just a few constructed houses such new resident projects on Lien Phuong Street as Kien A, Phu Nhuan House.
After 10 years, the North Rach Chiec Residential area project has completed just a few houses. The project’s road network has been destroyed and turned into container station. Some clients complained that it was impossible to build houses within the project area due to degraded infrastructure and short of electricity and water.
District 9’s North Rach Chiec Residential project approved by prime minister in 2001 covers 82 hectares. The project developer, Real Estate Joint Stock Company 10 (Res 10), had been handed up to 785,529 square metres to construct its technical infrastructure.
Along with Nguyen Duy Trinh Street, in District 9, a series of projects have been abandoned.
Dong Tang Long Residential Area, one of the most important projects within the district, developed by Housing and Urban Development Holdings (HUD), is an immense wild grass area. The project started construction in 2005 covering 159 hectares and provides a couple of houses. Even located in perfect areas such as Huy Hoang and The Ky villa projects have just filled with a few families despite the current project land transaction price being VND50-70 million ($2,403.8-$3,365.4) per square metre.
Other areas such as Thanh My Loi and Binh Trung Dong, used to be an effervescent market for realty project land transaction, have become deserts.
Nguyen Xuan Loc of Techcom Real, the property distributor in District 9 and District 2, said most buyers of areas with no residents were speculators.
Those realty prices remains high at least VND10 million ($480.8) per sqm and at highest VND70 million ($3,365.4).
Abandoning these projects will lead to all investments for their infrastructure such as electricity and road network, schools and infirmaries in vain due to the degradation and thus upgrading and maintaining costs a large sum of money.
General Secretary of HCMC Real Estate Association Do Thi Loan said: “It happened due to loose management, especially land handover by tenures. In order to avoid those above situations, it is necessary to design a clear planning strategy on land uses for industry or resident areas and consider pointing competent developers to deploy projects.”