The contradictory fate of Da Nang real estate projects

Those who frequently cross the Thuan Phuoc bridge are amazed at the rapid change of the apartment project named Hoa Binh Green Hotel Da Nang. In the middle of last year, the project began to build the body and now, this has entered the finishing stages.

However, on the other side of the bridge, the other two projects Sunrise Bay and Blooming Tower do not show the sign of construction.

Blooming Tower is a 37-storey-twin tower with total 671 apartments invested by Korea Development and Investment Co., Ltd. After nearly 10 years from the start of the project, the project finished just the first tower while the second tower is still the lawn.

Opposite the other side of the road is the Sunrise Bay urban area that also suffer the same fate. This project previously was owned by Korea but because the investor lacks financial capacity so this project was forced to transfer to Vietnamese partners.

The progress of construction of Hoa Binh Green Da Nang compared to that of Sunrise Bay and Blooming Tower shows two opposite sides of the Da Nang real estate market.

The capable investors are rapidly deploying projects to take business opportunities from the APEC summit which will attract thousands of officials, business man, journalists and senior executives from 21 economies including the United States, Japan and South Korea.

Not only Hoa Binh Green project but also Danang Sheraton resort which was invested by BRG Group is executed both day and night to put into use as a venue for the Gala APEC 2017.

From now to the end of the year, there will be an additional 1,350 apartments offered for sale, bringing the total supply to 8,000 units. In the next two years, an additional 9,000 hotel apartments are expected to enter the market.

But in the corner, there are a number of "dead" projects. Right in the heart of the city, three projects namely the Danang Center, the Vien Dong Meridian and the Golden Square - stopped constuction about ten years after finishing foundation.

Most of the investors of these projects have no financial capacity to carry on or if they are deployed, they will not sold well because the demand for luxury apartments in the center of the city is not high. Some projects have been forced to transfer to new owners.

The "hot spot" Son Tra

The discovery of Tien Sa unlicensed construction has revealed more huge projects in the Son Tra peninsula.

According to statistics of Danang People's Committee, a total of 18 projects were approved with the number of hotel rooms up to 5,600.

However, until now, there is only InterContinental Danang Sun Peninsula Resort project that has been completed and put into operation. Son Tra Resort & Spa project has been put into operation phase I.

The Chairman of Danang Tourism Association Huynh Tan Vinh is one of those who firmly oppose the establishment of accommodation on the Son Tra Peninsula. He said that investors mainly aim at the benefits of real estate but create negatively impact on the natural environment.

Facing opposition, the People's Committee of Danang requested the Prime Minister to allow the development of accommodation under 100 meters instead of 200 meters as before. Moreover, they also adjusted type of 6 projects to non-resident ecotourism and considered the reduction of the scale of 10 projects.

However, Huynh Tan Vinh still strongly opposed while affirming his determination to protect Son Tra treasure towards eco-friendly eco-tourism.

When the controversy over preservation and development of Son Tra is not yet complete, the projects here will remain only on paper.