Since 2018 many property projects in HCM City have been held up, badly affecting the market.

One of them is the Binh Khanh Urban Area spread over an area of over 30ha in Binh Khanh Ward inDistrict 2.

The project is being developed by 21st Century International DevelopmentCompany Limited, a subsidiary of Novaland Group.

The project is being developed under an agreement to buy resettlement condos from a project jointly developed by the 21st Century International Development Company Limited and Thu Thiem New Urban Area Management Board.

But because of a constraint on the city’s resources, the two sides decided to complete phase 1 and not to go ahead with the second phase. Land meant forthe second phase would be used to raise funds for the first, the developer said.

The first phase has been completed with over 506 resettlement condos and infrastructure.

Compensation and land clearance for the project have been complete by the District 2 authorities.

The city People’s Committee issued decision No3990/QD-UBND, permitting the developer to continue the second phase of the Binh Khanh Urban Area. It will comprise condos to be sold commercially.

However, amid the process of reviewing property projects in the Thu Thiem Area in District 2, the Binh Khanh Urban Area and other projects are also under the review. Because of that, the project has been delayed, causing a big burden on the developer.

This would also impact the general investment climate of the city, Novaland warned.

The group said it has sent a document to the Government to help resolve the problem so that itcould resume the project at the earliest.

Over the last 28 years Novaland Group has pursued sustainable development in order to benefit the society and community.

It has kept diversifying its products to meet the increasing demand from the market.

Novaland is not the only developer in the city facing difficulties.

Le Hoang Chau, chairman of the HCM City Real estate Association, said: “In the last year most property developers have faced challenges. Their revenues and profits are strongly down. Some of them even face bankruptcy.”

The difficulties, which have been persisting for long, haveincreased their costs, he explained.

A report by the association said last year supply in the citycondo market was down by 92 per cent with only a singleproject getting a licence.

2019 was also the second straight year in which property developers has faced difficulties, the association said.

“We recognise that the city real estate market is in a temporary difficulty caused by the conflicts between variouslegal provisions,” the association said.

The association and other experts said if these conflicts are not been resolved, not only Novaland but also other property developers would continue to face challenges.