» » Locals pass real estate projects to foreign investors

Money shortages are forcing local real estate investors to sell projects to foreigners.

After years of working on real estate developments – seeking design approvals and obtaining licensing – many local developers don’t have enough money to finish their projects.

Many of these developers are now handing their “babies” to those who can raise them.

Vo Dinh Quoc, the general director of ABLand Real Estate Investment Company in Ho Chi Minh City, said many local developers had asked his company to help them find foreign investors.

Some have wanted to contribute their funds towards a joint-project so they don’t have to abandon their development altogether.

A real estate developer in Ho M Chi Minh City said he is looking for foreign partners to carry out his apartment projects because his company can only meet 20 percent of the total construction capital.

“We have worked on these projects for several years but now that we’ve reached the final and most expensive stage, we have to turn management over to someone else,” he said.

Meanwhile, some domestic investors have given up their projects entirely to foreigners, abandoning the local real estate market – which they see as no longer lucrative – altogether.

A representative from Singapore’s Keppel Land Real Estate Company said transferring projects to foreigners is a practical move.

The representative said that most foreign investors were interested in Vietnam’s real estate market and could inject long-term funds into projects.

Moreover, because they were not familiar with official procedures in Vietnam, they were often willing to take over the unfinished projects that have already received licenses and approval from authorities, the Keppel Land representative said.

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