Vicoland Hue Construction and Housing Development JSC has completed apartment buildings for low-income residents

Reaching and exceeding the plan

Mr. Do Van Chung - Vice Director General of Minh Dien Vital Real Estate JSC (the investor of the Manor Crown Hue project) informed that Phase 1 of the project is a low-rise block including 43 shophouses and 24 semi-detached villas which has been completed and handed over to customers.

This investor is completing phase 2 of the project - The Manor Crown Tower high-rise complex. All apartments and shophouses of The Manor Crown Tower have been handed over to customers for interior decoration. At the same time, the project owner is completing some final items of the tower such as gardens, landscape... to bring the project into operation from June 2020.

According to the Thua Thien Hue Provincial Management Board Of Urban Area Development, investors actively implemented real estate projects in 2019 in accordance with their committed schedules. Some projects reached and exceeded their registered plans last year, included those of the Aninest JST (100%), Minh Dien Vital Real Estate JSC (104%), Xuan Phu Investment and Construction JSC (100%), Vicoland Hue Construction and Housing Development Group JSC (100%), Provincial Social Security (100%), Cotana-Telin-Capital Joint venture (105%)...

At present, Thuy Van Complex Phase 2 is the only new investment project receiving the Investment Certificate in An Van Duong new urban area. Due to a number of obstacles during the land allocation and the on-going investment approval procedures, the construction progress has not met that of the signed contract yet. Other projects are somewhat slow due to land clearance problems and impacts of the COVID-19 pandemic.

Continuing to implement the investment calling policy, the Thua Thien Hue Provincial Management Board Of Urban Area Development has completed the pre-qualification and investor selection process based on the approved investment calling list with land-use projects. The province has approved the pre-qualification results for 6 projects with a total investment of VND 13,600 billion. At the same time, the MBUDA continues to implement the bidding steps to select investors; and Thua Thien Hue Provincial Management Board Of Urban Area Development  expects to complete it in the second quarter of 2020.

In addition, it has completed the appraisal and approval process and released investment invitations for the Urban area in the North of Nhu Y river,  the Urban area in the South of Nhu Y river, Thuy Van residential area (Zone E - An Van Duong new urban area), High-class residential, commercial and service area at Vo Nguyen Giap - To Huu roundabout (Zone A - An Van Duong new urban area)…

Medium-term capital needed

The Thua Thien Hue Provincial Management Board Of Urban Area Development's director said that although the land clearance has been actively promoted, the People's Committees at levels and districts’ land fund development centers have taken interest in carrying out the implementation, most projects with residential land clearance have to take more time. These includes An Dong housing area, Thuy Van complex phase 1 and phase 2, Phu My An urban area, the 26m-wide road project of An Dong housing area, technical infrastructure of the resettlement areas 1, 2 and TD4...

The Thua Thien Hue Provincial Management Board Of Urban Area Development proposed the provincial People's Committee to enhance the supervision and coordination with relevant sectors to urge investors to boost and complete their construction projects on schedule, and pay more attention to provide guidance to departments, agencies, and localities to definitely resolve the land clearance and compensation and resettlement issues for some investment projects, especially those lasting for many years.

It also proposed to speed up the investor selection process for projects using land in the area for faster construction deployment that will gradually complete the infrastructure system and improve the appearance of urban areas, contributing to the development of Hue City towards a municipal city.

At the same time, it proposed the provincial People's Committee to pay attention to allocating capital in the medium-term plan of 2021-2025 for a number of infrastructure projects in the An Van Duong new urban area, assigning priority to infrastructure projects owned by investors and the Thua Thien Hue Provincial Management Board Of Urban Area Development, and the ecological system for both drainage and urban landscape purposes.

Mr. Ho Van Nhan - Head of the Housing and Real Estate Market Management section (Department of Construction), said that the COVID-19 pandemic has influenced the tourism-service sector, with direct impacts on the accommodation service and indirect negative impacts on the demand for short-term leasing of tourism and resort real estate in the province.

As for businesses with short-term vacation real estate projects, they will have more difficulties for project sale which affect their capital acquiring progress.

In the resort real estate segment, the sellers face more difficulties due to the negative impacts of cash flow. Meanwhile then buyers or investors always have available capital to proceed to transactions. The residential sector may be slightly affected as investors may not launch new sales due to the weak psychographics.

Luxury properties with potential buyers from China and Korea could face a decline caused by the pandemic. As for commercial real estate, the apartment purchases are based on customers’ needs and long-term living plans, and less affected by the COVID-19 pandemic, which also has less impacts on developers of industrial zone properties.

Story, photo: Nguyen Khanh