The stagnant Cho Mo Commercial Centre project
Hanoi Housing Management and Development Company’s project which was scheduled to be completed in summer 2012 only has its basic parts done. The Cho Mo Commercial Centre is also far behind schedule, despite being slated for a summer 2012 finish.
The Hapro Commercial Centre, scheduled to be finished in late 2011 is only now having the basic elements constructed, with the whole project moving at a slow pace.
Many real estate projects are being halted or delayed across Hanoi, such as the Tricon Tower in Hoai Duc, Royal SMS building in Ha Dong, and the G3AB Yen Hoa apartment block in Cau Giay.
The Skylight apartment project in Hanoi developed by the Construction Machinery Corporation Coma was started in 2009 and was expected to be completed in June 2011. However the building isn’t yet even halfway finished .
A construction worker at the site said, "The pace of construction was very sluggish before. It's only been progressing more steadily since November 2011". He also said only 120 workers were working on the site and there's always a short of building materials and supplies.
"It may be completed in another two years." Another worker said.
The delayed construction projects have caused worries from homebuyers. Lan Anh, a customer of a high-rise project at 187 Tay Son Street, Hanoi, said, "We borrowed a loan from the bank at the interest rate of 22% per year. Now we want to sell the unfinished apartment we bought because the construction progress is too slow but we don't know how to recoup the money."
Many customers in the Usilk City project are also worried about their investment. They had made a full payment in order to guarantee floor space in the commercial centre. However, nine months have passed since the completion date and the building is still on hold.
The construction industry is feeling the impact of the global recession combined with fiscal policies designed to curb inflation and stabilise the macro economy. Real estate developers' investments have dried up, and office and apartment projects are either stagnant or have slowed down.
According to the real estate research division of CBRE, customers are now bearing the brunt.
Real estate projects look deserted as few workers continue construction