Photo: Duc Anh
Capital joins HCMC in releasing list of real estate projects developers have used as collateral.
The Hanoi Department of Natural Resources and Environment has released a list of real estate projects in which the property has been mortgaged with banks as at July 29.
The list of 34 property projects was released on July 31 and follows the recent release of a similar list from the Ho Chi Minh City Department of Natural Resources and Environment.
The list includes major investors and projects, such as the Tan Hoang Minh Group, which mortgaged part of its property project in O Cho Dua ward in Dong Da district, the Nam Cuong Group, which mortgaged land plots in Yen Nghia and Duong Noi ward in Ha Dong district, and the Geleximco Group, which mortgaged land plots in the Le Trong Tan new urban area in Duong Noi ward, Ha Dong district and in La Phu commune in Hoai Duc district. Other major investors on the list included Van Phu - Invest, the T&T Group, and Gamuda Land Vietnam
VET approached Tan Hoang Minh and Nam Cuong for comment but they were unwilling to discuss the matter.
“That developers mortgage their properties in banks to obtain more capital is a common activity in business and real estate development,” a department leader said. “Homebuyers should contact the department to get more information on the mortgage status of projects and the developer’s ability to grant housing ownership certificates.”
Problems have been seen recently in Hanoi’s property market, including at projects such as Dolphin Plaza in Nam Tu Liem district belonging to the TID Group, which have been used as collateral by the developers for loans from PVCombank.
The Ho Chi Minh City Department of Natural Resources and Environment recently announced an official list of 77 projects whose properties had been mortgaged by developers and homebuyers as at June 8. The list will be added to in the future.
In industry news, according to figures from the CBRE’s second quarter review released in June the condominium market is anticipated to continue to remain positive in 2016. A total of 6,100 new units were launched from 17 projects, increasing by 19 per cent compared to the last quarter. Sales activity will keep growing and newly-launched projects or re-launched projects will continue to contribute to the market.
A recent report from Savills Vietnam revealed that in the second quarter of 2016 total primary stock was 17,370 units, increasing 7 per cent quarter-on-quarter and 29 per cent year-on-year. “There were approximately 6,000 sales, an increase of 7 per cent quarter-on-quarter and 30 per cent year-on-year,” the report noted. Additionally, in the second half of 2016, 22,000 units from 41 projects, predominantly Grade B, are expected to launch, primarily in Tu Liem, Thanh Xuan and Cau Giay districts.