The Binh Duong’s Department of Construction said about 358 housing projects with a total area of 4,500 hectares have been licensed in the Southern province, but only 270 of them have been kicked off so fas.
Meanwhile, various real estate developers from Ho Chi Minh City and Dong Nai have moved to Binh Duong to seek for new opportunities, leading to a push in property prices, sometimes even doubling, in a very short period of time.
Binh Duong authorities tighten control on real estate market. (Photo: cafef)
The “hot” growth, with the participation of hundreds of real estate firms, has caused many violations. Last year, Binh Duong government established 19 task forces to investigate around 1,500 construction projects and handed out fines of VND2.4 billion (more than $100,000).
Reportedly, most violations include capital mobilisation based on the 2014 Law on Real Estate. Inspectors found property developers did not have enough capital, lacked legal documents and made illegal advertisements for their products.
The local authorities withdrew six projects and asked 24 others to submit their plans so that a deadline could be determined.
In an attempt to strengthen State management and limit risks for property buyers, the Department of Construction at the end of 2018 announced list of real estate projects which could be transferred and warned buyers to carefully seek information about developers and projects before buying.
A spokesman of the department told Sai Gon Giai Phong newspaper: “Buyers should sign a contract with developer that clearly states the time for capital payments and the deadline for completion.”
