Hundreds of HCMC real estate projects facing hurdles, authorities promise help

Ho Chi Minh City authorities have said they will intervene to help 143 real estate projects in the southern metropolis that continue to face obstacles.

They’ve noted that the local government has already cleared obstacles for 77 other real estate projects at the request of the HCMC Real Estate Association (HoREA) and the prime minister’s working group.

The 143 projects are encountering difficulties related to investment procedures, legal inspection, public land use, equitization of state-owned enterprises, and land use rights certification. Some of them have received guidance from local authorities on how to remove some of the hurdles.

Municipal authorities will focus first on removing obstacles for projects that are facing obstacles related to investment procedures and land use rights recognition.

The HCMC administration has resolved legal problems for many major realty projects including the Song Viet residential and commercial project by Son Kim Land Corporation and the Cuu Long apartment project, which was renamed De La Sol after its owner Viet Hung Phu was wholly acquired by CapitaLand Development.

Six apartment projects of the Hung Thinh Corporation - Moonlight Park View, Moonlight Boulevard, Moonlight Avenue, Moonlight Centre Point, 9 View Apartment, and 8X Dam Sen – have been helped to sort out their legal issues.

“Complications” have been resolved for other apartment projects including the Grand Manhattan by Novaland Group subsidiary Viet Land Development Corporation, the Gamuda Land and Metro Stars.

Commenting on the situation, HoREA chairman Le Hoang Chau says that the laws on Land, Housing, and Real Estate Business that will take effect on August 1 will eliminate most legal hurdles for numerous real estate projects.

He believes this will promote the recovery and development of the local real estate market, likely starting later this year.

The Ministry of Construction has estimated that around 1,200 real estate and commercial housing projects are currently hindered by legal obstacles formed primarily by overlapping, complex regulations. Limited capabilities of investors has also been a factor, the ministry has said.

HCMC's real estate sector posted H1/2024 revenues of VND124 trillion ($4.87 billion), up 6% year-on-year, according to the municipal statistics office. Property website Batdongsan.com.vn has noted that apartment prices in the city rose 6% year-on-year in H1/2024, while prices in other segments remained stable.