HCM City authorities, property developers discuss solutions to problems plaguing market

Monday, Feb 24, 2020 18:33

The challenges that property developers face in HCM City were discussed at a meeting between the People’s Committee, relevant departments and developers last week.

Most developers expressed concern about issues relating to legal procedures and projects’ suspension, saying these need to be fixed soon to create a transparent and competitive investment climate in the city.

City chairman Nguyen Thanh Phong assured that the focus would be on improving competitiveness by supporting leading companies.

“The difficulties property developers are facing are the city’s difficulties. The company’s development is the city’s success.”

He called on relevant departments to help companies solve the difficulties that they are facing. He ordered them to find solutions to the issues faced by the developers.

In recent months many petitions have been sent to the city authorities by the HCM City Real Estate Association and developers to resolve the difficulties faced in developing real estate projects in city.

“The city property market is now in trouble. These difficulties are temporary and abnormal. The reason causing these difficulties is the conflict between various legal regulations,” Phong said.

An executive from Novaland, one of the giant real estate developers in the city, said thanks to the support from the city authorities, many problems faced by developers had have been resolved.

For instance, the District 1 People’s Committee has handed over land to Novaland to develop a condo project on Co Giang Street, he said.

The Department of Construction has also issued a construction licence for the project.

Novaland also said the Department of Natural Resource and Environment has approved the land-use price for a project on 151-155 Ben Van Don in Ward 6, District 4, a mixed-use complex with a mall, office, officetel units, and apartments.

One more project by the company where problems have been solved is the one in Thao Dien Ward in District 2.

Yet another is a complex with a mall and condos at 1W Dien Bien Phu, Ward 25, Binh Thanh District.

The Department of Construction has issued land-use certificates to people living in these two projects.

The Department of Rural Development and Environment and other agencies are studying how to value land prices at a condo project at 67 Mai Chi Tho, An Phu Ward, District 2, and seven other projects in Phu Nhuan District.

The grant of land-use certificates for these projects would be soon done, Novaland said.

But the company said it faces other challenges. For instance, its subsidiaries face problems while completing procedures to switch the land-use purpose even under already-approved plans.

Official agencies are facing difficulties in assessing documents due to legal shortcomings, it said.

Novaland expressed the belief that the city would have timely directions for real estate developers to resolve their problems to boost the city property market.

It would enable developers to quickly resume their projects and increase supply in the market to meet the increasing demand and contribute to the development of the city’s economy.

Novaland is a giant property developer in the south who owns and develop around 4,900ha of land now.

For a developer, the possession of unencumbered lands is an important factor in developing as well as bringing new products to the market.

Most of Novaland’s projects are able to be developed immediately right after legal procedures are complete.

For a developer with long-term vision, difficulties related to legal problems cannot be long.

When this problem is solved, the market will be back on track and Novaland will have supply ready to enter the market. This is a positive sign that the city’s experts and investors in the city are waiting.

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