35% of luxury homes in Hanoi left unoccupied

Nearly 35% of large, newly constructed homes in Vietnam’s capital are left unused.

The Ministry of Construction’s Housing and Real Estate Market Management Department and the Hanoi Department of Construction have inspected 16 housing projects in the city. These projects, by 11 separate investors, include spacious homes, semidetached houses and apartment blocks.

Vu Xuan Thien, Deputy Head of the Housing and Real Estate Management Department, said, 1,743 among the total number of 2,684 luxury homes that were checked are in use, leaving 698, or roughly 35% vacant.

According to Thien, the main reason for the neglected state of many of these homes has been years of speculation in Hanoi’s real estate market, along with a lack of infrastructure, such as schools, and hospitals to serve potential occupants.

Most of the inspected projects failed to meet construction deadlines set by authorities. Some were up to 5-7 years late, he added.

The department has ordered investors to focus on the construction of infrastructure facilities.

Also, large homes and semidetached structures must be put into use strictly in line with the contracts the investors initially signed. This action by the department is meant to deal with the problem of so many large, luxury homes being left vacant for years.

Meanwhile the city is short of land and and many residents find it difficult to secure housing.

An Sinh apartment block in My Dinh 2 urban area, Tu Liem District, is a typical example, with large homes left abandoned for five years. Others, including Co Nhue, Van Quan and Phap Van-Tu Hiep urban areas, are in the same state.

Earlier, the prime minister requested the Hanoi municipal government to scrutinise the neglected villas. However, the situation has not improved. – Dtinews

Tags: Hanoi luxury homes