The Hanoi Melody Residences project (Linh Dam, Hanoi), developed by Linh Dam Real Estate Investment Co., Ltd., was launched in 2022 and was expected to be completed by Q4 2024. However, construction has stalled at the 5th floor until now.
Recently, the project has been aggressively marketed again. As a result, the selling price has surged to 70 – 80 million VND per square meter.
Previously, the project attracted significant attention in the market by offering a high discount of up to 38% of the apartment value if customers made an early payment of 95% of the apartment value with their own money. With this discount, at that time, the price of an apartment in the project ranged from 1.5 to 3.2 billion VND, equivalent to approximately 25-28 million VND per square meter.
Earlier, in August, Quang Minh School Joint Stock Company, the investor of the QMS Top Tower project (located at the intersection of Vu Trong Khanh and To Huu, Hanoi), also announced the resale of the project. This project was granted a construction permit in 2018 and was expected to be completed by 2020. However, after topping out in April 2020, the project suddenly halted construction and has been dormant until now. The resale price of this project has also soared to 80 million VND per square meter.
QMS project after 4 years of dormancy is being sold again.
In the Southern market, the investor of the Ecity Tan Duc Urban Area project is also making moves to restart this project.
At the recent 2024 Annual General Meeting of Shareholders, the leadership of Tan Tao Investment and Industry Joint Stock Company announced that they had been granted a 12-month extension to implement the slow-moving Ecity Tan Duc Urban Area project, which was licensed in 2008.
According to the company’s leaders, the extension aims to overcome difficulties and invest in infrastructure, but it will take at least 3-5 years to complete the entire project as planned. In 2024, the company will continue to invest in technical infrastructure using bank loans or by cooperating with secondary investors to develop the project to quickly recover capital.
Notably, the information that the Cocobay Danang project is about to be restarted in May has stirred up the real estate investment community.
Previously, Thanh Do Construction and Development Joint Stock Company, the investor of the project, reported to the Danang Department of Construction about the implementation time of the super project Cocobay Danang. Accordingly, the project is expected to restart in May 2024.
According to the plan, the HH6 subdivision, including 2-3-storey villas, is expected to be completed by March 2025; the HH2 subdivision is expected to be completed by June 2025. The remaining subdivisions will be completed in 2026 – 2028.
These dormant projects are being resold in the context of soaring apartment prices. However, according to the Ministry of Construction, although house prices are at a high level, actual transactions are not many. The Ministry of Construction attributed this paradox to the significant gap between housing prices and people’s income, which is likely to persist due to economic difficulties and stagnant income.
Mr. Nguyen Van Dinh, Chairman of the Vietnam Real Estate Brokerage Association, said that when the laws come into effect, many projects will be unblocked and implemented, thereby increasing the market supply. This will help ease the current supply-demand pressure, and house prices will gradually decrease to a reasonable level, becoming more affordable for people.
In addition, when investors can easily access land, there is an opportunity to reduce the cost of project development thanks to the shortened legal completion process. As a result, selling prices can be adjusted.
