Bình Dương tightens real estate

HCM CITY – The hot development of the real estate market in the southern province of Bình Dương has led to hundreds of projects that now provide thousands of apartments for residents and migrant workers, but many violations by investors in the projects have occurred.

As many as 358 housing projects covering over a total area of 4,500 hectares have received licenses, but only 270 of them have kicked off, according to the provincial Construction Department.

In addition, many real estate companies from HCM City and Đồng Nai have moved to do business in the province and have caused the price to increase in a very short period of time, sometimes even doubling.

The hot development, with the participation of hundreds of real estate companies, has led to many violations.

In 2018, the province established 19 task forces to investigate nearly 1,500 construction project and handed out fines of VNĐ2.4 billion (over US$100,000).

Most violations include capital mobilisation based on the Real Estate Law which took effect in 2014. Inspectors found that investors did not have enough capital, lacked legal documents, and made illegal advertisements.

Six projects were withdrawn and 24 others were told to submit their plans so that a deadline could be determined.

To increase state management and limit risks for buyer, by the end of 2018 the Construction Department publicly announced the name of real estate projects which could be transferred and warned buyers to carefully seek information about investors and projects.

“Buyers should sign a contract with investors that clearly states the time for capital payments and the deadline for completion,” a spokesman for the department told Sài Gòn Giải Phóng (Liberated Sài Gòn) newspaper. — VNS