Inspected properties disappoint officials
Inspected properties disappoint officials
Along with implementation of solutions to support the real estate market, Ha Noi's Department of Construction has recently completed the inspection of 15 urban area projects currently under construction.
The results were disappointing, it reported.
The inspection revealed that all of the projects have fallen behind schedule and lacked infrastructure which were indispensable for the people to live in.
Almost all of the investors blamed the stagnation on the depression in the real estate market, citing problems and difficulties related to site clearance.
One example is the Dai Kim-Dinh Cong new urban area project in Hoang Mai District, backed by an investment from the Ha Noi Housing and Urban Development Business JSC.
With a commitment to complete construction by 2007, 3,426sq.m of space still remains to be cleared from the 24-ha project.
Infrastructure systems are also left open, while construction of 1,117 out of the 1,125 villas and three apartment blocks of the project have been completed.
In another large scale, 189.7-ha project, the Nam An Khanh new urban area, backed by investor Song Da Urban and Industrial Zone Investment and Development JSC, is also on red alert in regard to progress.
According to Tran Duc Hoc, Deputy Director of the Municipal Construction Department, the project was implemented in 2004, but at the time of inspection only 588 of the 1,620 low-rise apartments have been built.
Worryingly, the project planned to use 8.3ha of land for the construction of public buildings and schools, but none of them have been developed yet.
Explaining the causes behind the project's prolonged implementation, investors in the Nam An Khanh urban area and Ha Noi Garden City said that they had to adjust the planning many times, which affected the investment opportunities of their projects.
Additionally, the downturn in the real estate market also makes it more difficult to raise capital.
While not denying some responsibility for the delays, investors suggested that the city authorities should focus on settling the existing shortcomings, especially site clearance.
The city should have a mechanism to remove obstacles blocking compensation for the support and resettlement of residents, they said.
Investors also need specific guidance on determining the project's land use fees and rents by using land valuations based on market prices.
City speeds up stagnant projects
The Ha Noi People's Committee has been asked to handle 131 projects that have been delayed due to site clearance issues in the city by the end of this year.
These projects cover a total area of more than 1,618ha.
The Municipal People's Committee asked relevant authorities and agencies to determine the causes behind the delays and to find measures for handling them within the year.
Of the projects, 30 were reported to have difficulties related to policies, 28 encountered complaints from residents, 16 suffer a shortage of capital or relocation and 16 others on hold until the city completes its planning.
Under the city's 2009 plan for speeding up slow projects, there were 291 projects which had land handed over for implementation; however, delays in site clearance remained and only 160 projects have completed land clearance to date.
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