A number of real estate projects with investment of more than VND1 trillion (US$43 million) in the centre of HCM City remain delayed even while the land area for new projects in the city has become increasingly limited.
|The inconsistencies between the Land Law and Planning Law have contributed to delays in the completion or start of major real estate projects in HCM City. — Photo baomoi.com|
According to the city’s Department of Construction, contractors of these delayed projects are facing problems receiving permission to convert the land use to other purposes.
Le Hoang Chau, head of the HCM City Real Estate Association, said the inconsistency between the Land Law and the Planning Law, as well as other conflicts between laws, have also contributed to delays.
Chau said the construction permit issuance and construction design evaluation process should be combined to shorten the time for granting construction permits.
Many real estate projects have been delayed since 2015.
The Alpha Town project located at 289 Tran Hung Dao Street in District 1, a mall-service-office and apartment building, started construction in 2010. The project with total area of 4,000sq.m has been suspended since then.
The Lavenue Crown project at Le Duan Street in District 1, a 4,900sq.m project, was slated to become a luxury hotel, but the vacant land plot, where a building that once stood on the plot was demolished, has been used as a parking lot for years.
Eleven months after HCM City residents with farming lands were told they had to apply to change them into housing lands, thousands are still waiting to apply because the master plan for land use has not been ratified by relevant agencies yet.