HCM City struggles to sell underground parking lots idea to investors

Wednesday, May 27, 2020 11:50

HCM City authorities are finding it hard to attract investors to four proposed public parking lots in the downtown area.— VNS Photo

The HCM City Department of Transport has warned that the shortage of public parking space is worsening because building parking lots is expensive and returns on them are low.

The city has planned a number of underground car parks in the downtown area such as at Le Van Tam and Tao Dan parks, Trong Dong Theatre and Hoa Lu Stadium, all in District 1.

Approved in 2009 the proposed lot under Le Van Tam Park will accommodate 1,300 cars and 2000 motorbikes, but it remains on paper.

The one at Trong Dong Theatre is proposed to be 1,620sq.m in size and VND740 billion (US$31.9 million). It will include seven floors below ground and three above.

It is expected to accommodate 890 cars and 400 motorbikes.

The four-storey underground lot at Tao Dan Park will cost VND1 trillion ($43.1 million) and have space for 1,198 cars and 896 motorcycles.

The Hoa Lu Stadium lot will cost VND3.4 trillion ($146.6 million) and have five underground floors with space for 2,548 cars and 2,873 motorcycles.

According to the department, one of the main hurdles is that large underground and high-rise parks require large investments but take very long to break even.

Breakeven has been estimated at between 31 and 46 years, making them unattractive to private investors, it said.

To overcome this problem, it plans to waive land rentals for them. — VNS

Comments (0)