High-profile real estate projects on sale in Ho Chi Minh City amidst COVID-19
High-profile real estate projects on sale in Ho Chi Minh City amidst COVID-19
The novel coronavirus disease (COVID-19) has taken a toll on the real estate market in Ho Chi Minh City as many realty projects have been put up for sale, including those costing millions of dollars.
Collateral such as apartment projects, schools, homes, cars, and wedding reception venues are being sold by local banks, as the negative impact of the COVID-19 pandemic has resulted in a surge in bad debts.
The Saigon One Tower, located at the Ton Duc Thang-Ham Nghi Intersection in downtown District 1, is among the realty projects that have been put on sale.
Initiated in 2007, the US$265 million project was expected to be complete within two years and become a complex of apartments and offices with high-end commercial services as well as the largest outdoor bar in Vietnam.
However, the project was halted in 2011 when about 80 percent of the construction had been finished.
In October 2014, the Ho Chi Minh City Inspectorate issued a decision to comprehensively examine the implementation of this project.
On August 21, 2017, the Saigon One Tower was seized by the Vietnam Asset Management Company (VAMC), and up for auction starting at VND6.1 trillion ($263 million).
Another project, the Crystal Palace wedding reception center in Phu My Hung New Urban Area in District 7, is being offered for sale by the Bank for Investment and Development of Vietnam (BIDV) at VND356 billion ($15.3 million).
The venue was designed to have eight floors, a two-story basement, and a rooftop covering a total area of 2,675 square meters.
In late 2019, it was priced at VND535 billion ($23 million), while the monthly rental cost was VND3.6 billion ($155,310).
The Saigon Joint Stock Commercial Bank (SCB) is selling the SaigonTech School, located in Quang Trung Software City in District 12, at VND196 billion ($8.4 million).
The lender has also offered the BMC Hung Long project in District 7 to buyers.
Designed with more than 860 apartments, the construction began in 2011 on an area of nearly two hectares at a cost of VND400 billion ($17.2 million).
It was expected to be complete after 30 months but the project has been abandoned up to date.
