Many plans for five-star hotels in Danang City remain on paper as investors have left them stagnant for many years.
Many plans for five-star hotels in Danang City remain on paper
Many people in Danang still remember the big ground-breaking ceremony for Danang Centre and Han Riverside buildings, planned by Vu Long Chau Real Estate JSC, which was to cost USD125 million. The project was expected to be complete in 2011.
However, over the past three years, the project has been left idle and is now covered with wild grass, waste and unused building materials.
The 48-storey Vien Dong Meridian Tower, with a total investment of USD180 million, which supposed to be the tallest building in the central region, is in the same state.
After several warnings of land withdrawal from local authorities, the investor promised to restart the project. However, these plans have been delayed and there has been no activity on the site.
The VND1 trillion Golden Square Project was started in January, 2008. To date, however, only small portions have been completed, and all that is visible are some rusty posts laid in the foundation.
According to CBRE, by the end of November 2013, there had been no construction activity on 12 construction projects in Danang City.
Real estate investors said that the projects were started at a time of great excitement, but that this excitement has died down in the context of a weak real estate market.
Tran Ngoc Thanh, General Director of Dat Xanh Mien Trung Company, said that in the next five to ten years, demand for luxury apartments in Danang could increase.
Danang authorities have urged local management agencies to take measures to speed up projects. Accordingly, the delayed projects must have a commitment for investment within the year.
The chairman of the city People’s Committee Van Huu Chien said that many investors have promised to resume their projects, but that is only solution to the problem at present.
“We want to find investors to replace them, but is is not easy,” he noted.
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