Why do real estate projects in Phu Yen encounter many problems?

Why do real estate projects in Phu Yen encounter many problems?

The Hoa Vinh Market Street Residential Area project has not yet had its land price approved because the consulting unit has no basis for its proposal (because there is no similar project). Many projects have not been approved because of problems with the floor price to be paid to the budget.

Consulting unit also struggling

Regarding the Hoa Vinh Market Street Residential Area Project, Construction Investment Joint Stock Company 72 informed that although the project has been recognized as an investor by the People's Committee of Phu Yen province (in Document No. 5418, dated September 24, 2018); the land allocation decision was issued since December 2019 (phase 1, with an area of ​​11.79 hectares). At the same time, the Company has simultaneously implemented construction of many items since April 2020 (leveling the ground, traffic roads and drainage system reaching 50%; the market reaching 90%...), but up to now, the project land price has not been approved by the People's Committee of Phu Yen province according to regulations.

Hoa Vinh Market Street Residential Area Project at the time of technical infrastructure construction. Source: binhanpy.

Construction Investment Joint Stock Company 72 said that the extension of land use fee calculation for more than 4 years has caused the Company many difficulties and deadlocks; the construction progress has recently been stalled because of financial difficulties for the project. In addition, commercial banks will only continue to disburse for the project when the competent authority approves the land price.

Meanwhile, on November 16, 2022, the People's Committee of Phu Yen province issued a decision approving the adjustment of the investment policy (in Decision No. 1372). Accordingly, the project implementation progress must be completed and the entire project put into operation in June 2024.

On December 2, 2022, the Company submitted Report No. 182/KHKT to the Provincial Party Committee, People's Council and People's Committee of Phu Yen province, requesting the relevant departments and branches to urgently calculate the land price and the floor price to be paid to the budget (m3 value) for the project, but the authorities have not yet resolved it.

This company has proposed that the People's Committee of Phu Yen province notify the investor to pay into the budget the financial obligations for the Hoa Vinh Market Street Residential Area Project.

Responding to the above proposal, the Department of Natural Resources and Environment of Phu Yen informed that, based on Decision No. 2144, dated December 27, 2019 of the Provincial People's Committee on land allocation and land lease to implement the Hoa Vinh Market Street Residential Area Project, Dong Hoa District (Phase 1), the Department has hired a consulting unit to determine specific land prices as the basis for calculating land use fees and land rents of the project.

The Department of Natural Resources and Environment has submitted the specific land valuation to the Provincial Land Valuation Council a total of 6 times but has not yet been unanimously approved by the Council (the first time on January 14, 2021, the sixth time on June 21, 2022). The reason is the problem of determining the specific time of land valuation.

Phu Yen Provincial People's Committee has given instructions for implementation in documents dated April 10, 2023, May 29, 2023, July 10, 2023 and August 11, 2023, respectively.

Following the direction of the Provincial People's Committee in these documents, the Department of Natural Resources and Environment has repeatedly requested the consulting unit, New Vision Valuation Company Limited, to edit and complete the dossier.

However, on November 24, 2023, this Company sent an official dispatch requesting to refuse to continue implementing the specific land valuation contract signed with the Department of Natural Resources and Environment because the company has temporarily stopped valuation activities.

After that, the Department of Natural Resources and Environment hired a new consulting unit to implement the project. This consulting unit applied the surplus method to determine the specific land price for the project. However, the Department of Natural Resources and Environment mentioned that the consulting unit determining the land price also failed to propose the contents of other factors forming revenue and factors forming costs to serve as the basis for determining the specific land price.

"Because in reality, up to now, Phu Yen province has not conducted land valuation for other projects similar to the Hoa Vinh Market Residential Area Project, the consulting unit has no basis for making proposals," the Department of Natural Resources and Environment of Phu Yen province raised the issue.

Remove m3 value

Not only Construction Investment Joint Stock Company 72 has difficulties related to the m3 value at the Hoa Vinh Market Residential Area Project, another enterprise has also not had its project approved for this reason.

Specifically, in the petition sent to the People's Committee of Phu Yen province, ROX Group Joint Stock Company stated that recently, the Company and its affiliated units and associated units have been interested in and participated in investing in a number of real estate projects in Phu Yen province.

Specifically, the projects preparing for investment include the Hoa An - Hoa Tri New Residential Area Project (Phu Hoa District); Nam Binh New Urban Area Project, Phase 1 (Hoa Xuan Tay Ward, Dong Hoa Town). These projects have completed legal documents; are eligible to submit for appraisal and approval of investment policies according to regulations.

The project has submitted an application for investment project implementation, which is the Phu Thu Town Market Area Project (Tay Hoa District).

However, this enterprise mentioned that because the Departments, branches and localities had to wait for the direction of the People's Committee of Phu Yen province according to the content of Notice No. 1847/TB-VPUBND dated November 14, 2023, the projects could not implement the next steps.

Therefore, ROX Group Joint Stock Company requests the Provincial People's Committee and the Department of Planning and Investment of Phu Yen province to soon give instructions on housing projects and real estate projects so that investors have enough basis to implement the next steps and speed up the investment progress of the projects.

Responding to the business's petition, the Department of Planning and Investment of Phu Yen province said that the implementation of housing development projects in the form of organizing bidding to select investors in the province is currently facing a number of difficulties and problems.

Implementing the conclusion of the collective leadership of the Provincial People's Committee at the meeting of the Chairman and Vice Chairmen of the province on November 1, 2023 (in Notice No. 1847), the Department of Natural Resources and Environment organized and reported the results of the review to determine the origin of the land, time and land users.

Along with that, clarify the area of ​​public land and the area of ​​land allocated by the State for management according to the provisions of Article 8 of the Land Law in the total project area for housing projects to select investors by bidding (including projects with determined m3 value and without determined m3 value); including the projects of ROX Group Joint Stock Company mentioned above.

Based on the review results of the Department of Natural Resources and Environment and other related contents, the Department of Planning and Investment informed that the Department is synthesizing; at the same time reviewing new regulations on bidding conditions for selecting investors to implement investment projects using land of the 2024 Land Law; bidding according to the 2023 Bidding Law and implementing documents.

The Department of Planning and Investment is synthesizing and reporting to the Provincial People's Committee for consideration and decision on housing development projects in the form of organizing bidding to select investors in the province, as a basis for implementing the next steps (including the Hoa Vinh Market Residential Area Project, Dong Hoa town).

The Hoa Vinh Market Residential Area Project invested by Construction Investment Joint Stock Company 72 has an area of ​​nearly 13 hectares, with a total investment of over 162 billion VND. The project includes the new Hoa Vinh market with a scale of 2 floors, a commercial center and kindergarten area, 387 residential lots, 6 green parks, etc.

Source: https://baodautu.vn/batdongsan/vi-sao-cac-du-an-bat-dong-san-tai-phu-yen-gap-nhieu-vuong-mac-d220513.html