While major new construction projects seem to appear in Saigon on a daily basis, some of the city’s most valuable real estate remains undeveloped.
VietnamNet reports that in 2007, city authorities called for investment in 20 “golden land” plots, so called for their prime location. However, nearly 10 years later, only four of these areas have received investment. The news source cites 164 Dong Khoi as an example, as the plot was originally purchased by Hongkong Land and Sumitomo Development (pictured above), only to be returned to the city later.
Meanwhile the triangle between District 1’s Tran Hung Dao, Nguyen Thai Hoc and Pham Ngu Lao has changed hands three times. According to VietnamNet this land is considered the best location in the city, yet no new construction has been implemented. Currently a joint venture between South Korea’s Jimiro and Vietnam’s Dai Tan Phu plans to build three 55-story office towers, a 30-story five-star hotel and a 10-story business center on the plot, but there is no timeline for when work will actually begin.
Other prominent land has been acquired, but construction has been slow to take off. Bitexco Group has been building The One Ho Chi Minh City across from Ben Thanh Market for years, but only the basement has been completed. Bitexco also holds the plot at the intersection of Nguyen Cu Trinh and Cong Quynh, yet the site sits idle.
According to the news source, a major problem facing these plots is the weak financial capabilities of Vietnamese firms. Meanwhile, foreign investors have snapped up major complexes like Kumho Asiana Plaza, the AB Tower and Diamond Plaza – across from which sits Lavenue Crown, yet another stalled development and perhaps an ill-advised foray into real estate business by local bakery giant Kinh Do. This could point to the future of Saigon’s “golden land”, as real estate is the favorite sector of foreign investors. As of this February, total foreign investment in this area had reached US$14 billion while the city plans to auction 23 such plots by the end of the year.
All told, there are some silver linings to be found in these circumstances. Empty lots provide a significant portion of downtown's parking lot space and lackluster development has given many of Saigon’s historic buildings a stay of execution.
[Photos via Zing]
