Inadequacies in project capital mobilization in Ho Chi Minh City

Projects are launched with great fanfare, then put on hold.

According to an investigation by Nguoi Dua Tin reporters, in previous years, the apartment and condominium market in Ho Chi Minh City was quite vibrant. Real estate project management was always a priority for authorities, with increased inspections. However, "underground" projects were still being advertised and raising capital before meeting the legal requirements for sale.

The D-One project is located on Phan Van Tri Street, Go Vap District.

Notably, the D-One and D-Aqua projects are developed by DHA One-Member Limited Liability Company. The D-One project, located at 12 Phan Van Tri Street, Go Vap District, is also developed by DHA One-Member Limited Liability Company. Since the end of 2018, this project has been advertised and reserved by brokers.

The D-One project was advertised as a planned development covering a total area of ​​2 hectares, including 322 studio apartments and 226 modern shophouses. It was touted as a vibrant shopping, entertainment, and leisure paradise, and the perfect addition to a sleepless Ho Chi Minh City. However, our reporter's observations reveal that D-One is just an empty plot of land, and it's unclear when the project will restart.

Another project of DHA Corporation is the D-Aqua project located on Ben Binh Dong frontage, Ward 14, District 8, on public land that was transferred repeatedly from Ho Chi Minh City General Import-Export and Investment Corporation (IMEXCO) to DHA Corporation.

In 2020, PV reported on the situation where DHA One-Member Limited Liability Company was illegally raising capital at the D-Aqua project, even though it was just an empty plot of land at the time.

Three years later, according to our reporter's observations, the project has restarted, with nearly a dozen workers currently on site, but it remains unclear when buyers will receive their homes.

Rendering of the Salto Residence project.

Meanwhile, in Thu Duc City, the Salto Residence project, developed by Saigon Construction Corporation (SCC), has recently emerged as a prime example, offering units for sale even though the land was just an empty plot.

Located right on Nguyen Thi Dinh street in the Pho Dong Village urban area, the project is built on a plot of land measuring 8.77 m2, comprising 21 floors with 483 apartments and 8 shophouses. According to the sales representative, this project currently offers extremely attractive prices starting from only 59 million VND/m2. SCC also held a project launch event at the end of May 2022.

The investor received the money and then made a promise.

In Ho Chi Minh City, there are no shortage of real estate projects that were launched with great fanfare a few years ago, collecting money from hundreds of customers, but then stalled. People are left waiting anxiously for the day they can have a home.

The City Gate 3 project remains at a standstill.

For example, the City Gate 3 project is being promoted on many websites as the most luxurious apartment project in the western part of Ho Chi Minh City, located in a prime location in Ward 16, District 8, and also the largest-scale project in Ward 16 to date. The project promises to create a real estate boom at the end of 2018, developed by Nam Bay Bay Investment Joint Stock Company (Company 577).

According to the advertisements, the project covers an area of ​​over 7.7 hectares, comprising 2,201 apartments in 3 blocks of 33 floors each; 34 shophouses; and 134 townhouses, with a total investment of 2,615 billion VND, fully funded by Company 577.

The project is presented with full amenities such as: kindergarten, primary school, medical station, tennis court, swimming pool, gym…

Despite the advertisements, the project remains stalled to this day, with no signs of construction starting. This has left many homebuyers in dire straits, having to borrow money and pay exorbitant interest rates to finance their payments to the developer.

The Lancaster Lincoln project started construction of the basement in late 2016, but was halted in 2018 due to the lack of a building permit.

The Lancaster Lincoln project, built on a plot of land larger than 8,400m2, comprises two 40-story apartment towers, an 8-story office building, and two basement levels, offering 586 apartments and 274 officetel units.

The project, invested by Trung Thuy Lancaster Co., Ltd., a member of Trung Thuy Group, started construction of the basement in late 2016 but was halted in 2018 due to the lack of a construction permit.

Information about the project facing legal issues and having to halt construction has left many customers who had already paid deposits and signed purchase agreements feeling anxious, as they had invested large sums of money, ranging from hundreds of millions to billions of dong. Residents have also sent petitions to numerous agencies and organizations, from local to central levels, but so far, the issue remains unresolved.

(to be continued)

Source: https://www.nguoiduatin.vn/bat-cap-trong-huy-dong-von-du-an-o-tp-hcm-a635620.html