The Never-Ending Story: A Decade-Long Wait for Social Housing Project

Continuous Delays

The Tân Bình Apartment Social Housing Complex project, developed by Tân Bình Real Estate Investment Company Ltd., has experienced significant delays. The project, which comprises two 16-story blocks with 168 apartments ranging from 58 to 83 square meters, was originally a commercial venture but later transitioned into social housing, benefiting from a preferential VND 30 trillion package.

In 2015, the developer started selling apartments, and prospective buyers were approved by the Ho Chi Minh City Department of Construction to purchase units in the complex, with banks agreeing to provide loans under the preferential VND 30 trillion package. Many buyers made payments according to their contract values, and the developer committed to handing over the apartments by October 2016. However, nearly a decade has passed, and buyers are still awaiting possession.

Mr. L.V.T., a resident of Go Vap district, Ho Chi Minh City, shared that in 2021, he signed a contract with the developer to purchase a shophouse for over VND 3.5 billion. The contract specified that the actual handover and occupancy date would be in June 2021. However, the developer failed to honor this commitment.

In July 2022, Tân Bình Real Estate Investment Company Ltd. issued Document No. 52/Tb-TB, pledging to expedite the handover of shophouses. According to this document, the end of October 2022 was set as the deadline for handing over shops to four customers, and the end of November 2022 for another five customers. The document also clearly stated that the developer would be subject to penalties as per the sales contract if they failed to meet these deadlines.

Whose Fault is it Really?

In 2018, the Ho Chi Minh City People’s Committee issued an administrative penalty decision against the developer for 19 violations in the fields of investment, construction, real estate business, housing development, and management and use of houses and offices. The total fine amounted to over VND 1.6 billion. The developer was also instructed to demolish two floors (15th and 16th) and other items that violated the permitted construction design.

However, during the process of rectifying these violations, management agencies proposed allowing Tân Bình Real Estate Investment Company Ltd. to retain the violating area on the mezzanine floor (332 square meters) and the violating areas at the four corners of the building. The rationale was that demolishing these areas would affect the building’s load-bearing structure, and this additional area would be offset against the planning criteria of Block 1 (yet to be constructed) to ensure compliance with the overall planning criteria for the entire project. This proposal was approved by the Ho Chi Minh City People’s Committee.

On May 20, 2020, Tân Bình Real Estate Investment Company Ltd. sent Document No. 145/CV-TB to the Ho Chi Minh City People’s Committee, requesting the restoration of the original 18-story planning criteria for the project.

On July 8, 2020, the Department of Planning and Architecture issued Document No. 2342/QHKT-QHKTV2, reporting to the Ho Chi Minh City People’s Committee on the direction of adjusting the detailed planning at a scale of 1/2000. In case of approval, the Department of Planning and Architecture would guide the People’s Committee of Tan Binh district to organize consultations with the community (including customers who have rented or purchased apartments) to summarize and report to the Ho Chi Minh City People’s Committee for consideration and decision.

According to customers who purchased apartments in the Tân Bình Apartment Social Housing Complex, Ho Chi Minh City authorities have repeatedly requested the developer to expedite the rectification of violations, complete the project, and hand over the apartments to buyers. The final deadline for the handover was set for April 30, 2021. Yet, as of now, buyers are still waiting for their homes.

Speaking to Tiền Phong newspaper, a representative of Tân Bình Real Estate Investment Company Ltd. stated that they had invited customers who purchased apartments in the complex to take possession, but they had not yet received them. Currently, only 60 customers have agreed to receive their units. “The project has been inspected and approved for fire protection and construction quality,” the representative asserted.

Regarding the shophouses on the ground floor, the representative of Tân Bình Real Estate Investment Company Ltd. stated that they have not yet been dealt with.