Property company suspension makes realty market "wholesomer": Insiders

Barring underperforming Hanoi property developers is compulsory to make the property market healthier. Developers who misoperate apartment buildings in Hanoi will not be allowed to implement new projects.

According to the Hanoi Department of Construction

According to the Hanoi Department of Construction, Hanoi has more than 1,100 apartment buildings and condominiums. The residents have elected 804 administration boards to supervise building developers. Of those figures, 723 developers have handed over all documents to their building management boards. In contrast, 567 building operators have reported maintenance fund data, and more than 700 developers have finished the construction of public areas in apartment buildings.

Statistics demonstrate that more than 80% of apartment buildings are still in good use. At the same time, residents of the rest keep struggling with abuse and waste of the maintenance fund by developers and the construction of substandard public areas. Local authorities carry out numerous measures, but these issues have existed for years and harmed apartment owners' rights and profits. 

Several businesses are fined for violations, such as Xuan Mai Construction and Investment JSC, Videc Group JSC, and Nam Mekong Group JSC.

According to attorney Dang Van Cuong - Head of Chinh Phap Law firm, the ban on unqualified property developers is "a wise move" to bolster their responsibilities and make a fair, competitive market among real estate companies.

Technically, a property developer becomes a project's principal contractor if the company can meet detailed requirements set by the project owner and the law, Cuong said. "Developers must demonstrate their ability through their existing projects," he said. "It is dangerous to permit the developer who can not meet the criteria or whose housing projects are behind schedule."

According to the insiders of Hanoi real estate market

Dang Hung Vo, former Deputy Minister of Natural Resources and Environment, said Hanoi's strong new measures might give a clean bill of health to the city's real estate market.

According to him, the significant crises of housing projects in Hanoi are:

• Underperforming construction procedures.
• Poor project management leads to land abandonment.
• Complex processes of granting land use certificates.

"Such issues have worsened Hanoi's image for years, so the essential task for the capital soon is to address them entirely," he stressed. He said if the ban comes to pass, it signals a progressive move by Hanoi's legislative body and will amend flaws and mistakes and strengthen the local real estate market.

"The municipal authorities should get rid of their 'group interest' thinking and take the measure seriously," he suggested. "When the property market is in good health, market prices will be more reasonable and affordable for people."

If developers and investors can operate their projects accurately, he said there would be an end to broken rules and conflicts between homebuyers and investors. Hopefully, Hanoi will set an example with a correct movement for other provinces and cities to follow, Vo said. 

Demand for housing and investment is consistently high

Vietnam house prices expected to fall as credit rates soar

Villas for rent in Vinhomes Riverside

Shophouse for rent in Vinhomes The Harmony