Buildings lie empty amid house shortage

Jul 23rd at 13:24
23-07-2018 13:24:19+07:00

Buildings lie empty amid house shortage

Hanoi residents are struggling to find houses because the city lacks social housing projects, with some projects currently being halted due to a lack of capital.

 

Meanwhile there is no shortage of resettlement houses, with thousands of homes abandoned, causing waste to the Stage budget.

According to the latest report of the Hanoi Housing Development and Management Company, it has 166 resettlement buildings with a total of 14,211 apartments.

Of which 13,111 were already paid for by homeowners, with the remaining 1,100 uninhabited.

Some resettlement buildings have been left empty for more than ten years in Long Bien District’s Sai Dong Ward, surrounded by fields of grass and garbage. The complex’s facilities, including electronic cabinets and hygienic equipment, have degraded due to unuse and lack of maintenance.

Three buildings in Bac Tu Liem District have been staying vacant since they were completed in 2014.

Similarly, the 20-floor apartment block in Hai Ba Trung District’s Ta Quang Buu Street is still uninhabited although it was built more than ten years ago.

The reasons

Nguyen Dac Thao, deputy head Urban Management Office under the Hanoi Construction Department, told Hanoi Moi (New Hanoi) newspaper that many households are not interested in resettlement apartments due to low quality and poor management.

Hoang The Anh, a resident living in Nam Trung Yen urban area, complained to Thoi bao Kinh Doanh (Business Times) newspaper about the low quality of the apartments, with cracks and peeled mortars covering the walls on the inside while moss grows rampant outside the house.

“In my apartment, the toilet breaks twice a week and fire safety equipment fails to meet standards,” Anh said.

Degradation and poor quality is the leading reason contributing to the vacancies in settlement houses, according to lawyer Trương Thanh Duc from Banking-Securities-Investment Law Co., Ltd.

Inconvenient locations of the housing and lack of accompanying social infrastructure such as hospitals or schools also reduce the attractiveness of the settlement houses, he said.

“Many do not want to move because their designated apartments are located on high floors, preventing them from easily running businesses like setting up shops.”

In addition, many house traders just buy resettlement houses at low prices only to flip them later to earn profits.

“The first beneficiary must be people in need of resettlement when we renovate the city, not a buy-to-sell trader," said architect Ngo Viet Nam Son from Ngo Viet Group.

Inappropriate compensation was also why resettlement buildings were abandoned in Hanoi, he said.

Many land clearance projects have been lagging behind schedule. Since residents see no progress in construction, they refuse to leave their old homes to move into the resettlement houses.

It is hard for residents to part with their land for a place far from the main road, not to mention giving up their business locations while their children must travel long distances to attend school.

According to the regulations of Hanoi People’s Committee, residents can receive financial compensation instead of a resettlement apartment if they opt for that option.

The department will withdraw the unclaimed apartments for other projects that will need resettlement.

In 2017, Urban Management Office retrieved 41 apartments because residents chose to receive compensation instead.

vir



NEWS SAME CATEGORY

Handover delay of Mandarin Garden 2 to cut Hoa Phat’s profit by VND200 billion

Ho Chi Minh City Securities Corporation (HSC) estimates that the after-tax profit for 2018 of Hoa Phat Group will reduce by VND200 billion ($8.8 million) due to the...

Real estate developers aim for green development

Sustainability and green are one of the most important factors for developers and investors to consider when developing their projects in Vietnam.

Time for VN developers to go green

With Viet Nam set for rapid urbanisation, sustainable development is an urgent task for the property sector, a seminar heard in HCM City on July 19.

Vietnam’s property market unlikely to see crisis in the next two years

Experts at the seminar “Crisis Cycle and Investment Opportunity in the Property Market” held by Thanh Nien in Ho Chi Minh City on July 18 agreed that a property...

The Metropole Thu Thiem - Shaping new Metropolitan lifestyle standards

The world’s elite always have their own privileges. Not only are they financially successful; they also appreciate architecture and culture, have a delicate...

​Commercial, office space rents continue to soar in Vietnam

Businesses in Vietnam are facing difficulty in finding suitable commercial or office space as the rental rates have skyrocketed, especially in big cities.

Most construction firms expected to perform better in Q3

Up to 57.3 per cent of construction businesses are expected to perform better in the third quarter of 2018, according to the General Statistics Office (GSO).

Thai billionaire sets ambitions on Vietnam's real estate sector

Singaporean Frasers Property Limited of Thai billionaire, the new shareholder of Sabeco, recently announced plans to buy 75 per cent of Phu An Dien Real Estate JSC...

Nam Long partners with investors for Waterpoint Township project

Nam Long Group on Saturday announced three strategic investors, including Nishi Nippon Railroad, TBS Group and Tan Hiep Investment Co Ltd for phase 1 of development...

Nam Long corporates with Japanese Nishi Nippon Railroad in $306.5 million project

Nam Long Group on July 14 signed the strategic agreement with Japanese investors joining in phase 1 development of Waterpoint Township in the southern province of...

Real estate stocks

Construction stocks


MOST READ


Back To Top