Many property firms have dismissed as inaccurate the HCMC Department of Natural Resources and Environment’s list of 77 half-done real estate projects in which developers or buyers have used their properties as collateral for bank loans.

A customer looks at a new apartment building in HCMC. The HCMC Department of Natural Resources and Environment has released a list of 77 half-done real estate projects in which developers or buyers have used their properties as collateral for bank loans

The complaint comes after the department announced the list in a move to boost transparency on the housing market. The list, which contains many top property companies and some high-profile projects, is aimed at protecting those involved in real estate transactions.

Speaking to the Daily, Phan Thanh Huy, general director of Novaland Group, said the information provided by the department was outdated. According to the list, Novaland had yet to present home ownership certificates to over 150 customers but in reality these customers have already got the certificates and moved in.

He said that only customers who have just acquired homes do not receive certificates, but noted that the enterprise has submitted documents to relevant agencies as required.  

Huy said the list left a strong impact on firms. However, a reputable company can easily make things clear to clients. 

Le Hung Manh, chairman of Gia Hoa Company, said though the firm currently does not borrow from VietBank to implement its The Art project, its name still appears in the list.

He said Gia Hoa has got VietBank’s agreement to guarantee the completion of the project in the future. Since the list came out, many customers have enquired with the company. Such a list is necessary but it must be correct and transparent to avoid misleading.

Another firm told the Daily that the Law on Real Estate Business allows eligible investors to get bank loans to implement their projects. In reality, banks offer guarantees to reputable companies only.

Many homebuyers have used their houses as collateral for bank loans but the investors of housing projects were mentioned in the list instead. 

Lawyer Nguyen Huu The Trach of the HCMC Bar Association said it is normal if investors mortgage their projects to take out bank loans. However, they have to clear collateral obligations or negotiate with buyers before selling products to them.

Homebuyers can ask investors to present banks’ documents which permit investors to sell future houses.

Le Hoang Chau, chairman of the HCMC Real Estate Association (HoREA), said investors depend on bank loans and capital mobilized from customers, and usually use their projects as collateral.

He said lenders should take measures to monitor investors’ use of loans to ensure the latter will repay loans. The department should add information about purposes of mortgages to help homebuyers consider carefully before acquiring houses.

Speaking to the Daily, Pham Ngoc Lien, head of the land registration division at the department, said the 77 projects on the list meet requirements to mobilize capital, sell and rent houses. 

The division does not announce projects that have been mortgaged for bank loans but have not been allowed to raise capital for implementation to ensure business secrets. 

Lien said the department had difficulty gaining access to information about mortgages as banks and investors inked deals and the department did not have information.

He noted the list was updated on June 8. 

In the coming time, the department will coordinate with the central bank and the departments of justice and construction to check the implementation process of projects and investors’ handover of apartments to homebuyers to provide accurate information to people.  

Chau of HoREA said that previously the names of property projects used as collateral would be publicized when requested.

The disclosure of information about property mortgages is necessary as it ensures transparency and compliance with regulations, he said.

While naming certain projects can dent buyers’ confidence in short term, Chau noted real estate used as collateral for loans can still be transacted provided that the creditor agrees and supervises.

Earlier, the city government asked relevant agencies and departments to publish information about mortgaged real estate projects. The department will continue to update the list.