BIDV has announced the selection of the institution to organize an auction of debts incurred by Tai Nguyen Construction, Production and Trade Co Ltd. The total value of principal and interest by auctioning time will be VND4 trillion.

The assets mortgaged for the loan include the property rights for the quarry in Quoc Oai district in Hanoi, valued at VND855 billion, and the right to use land and properties on the land in the future at Kenton Node project, located in Phuoc Kien commune, Nha Be district in HCM City.

Kenton Note was mortgaged by the borrower at many banks, including BIDV, MSB and PVcomBank (58 percent of the asset value was mortgaged at BIDV). The value of the collateral was VND7.836 trillion, of which VND4.545 trillion belongs to BIDV.

Kenton Note has had a poor fate. This is a complex with total area of 9.1 hectares, comprising more than 1,600 high-end apartments, a shopping center, 5-star hotel, marina and water stage.

Because of the investor’s limited capability and market upheavals in the last 10 years, the complex has unfinished buildings.

In 2018, Kenton Node was rescued by TNR. The name of the project changed to TNR Kenton Node and banks pumped trillions of dong into the project. However, the project has not been revived as expected.

In 2018, Kenton Node was rescued by TNR. The name of the project changed to TNR Kenton Node and banks pumped trillions of dong into the project. However, the project has not been revived as expected.

BIDV has also foreclosed on the mortgaged assets of Thuan Thao Group. Its 2019 finance report showed that the group still had an unpaid debt worth trillions of dong. BIDV has been joining forces with the Vietnam Asset Management Company (VAMC) to sell the collateral but still cannot find buyers.

These projects are just the tip of the iceberg. Many other smaller projects, valued at between tens and hundreds of billion of dong, are being distrained by banks to ensure the system’s liquidity.

Analysts believe that as revenue of many resorts, hotels and condotels has been affected by Covid-19, the rest of the year will continue to see bargaining away of properties to stop losses.

A report from Jones Lang LaSalle Vietnam (JLL) found a downward trend in real estate prices in the primary market (prices quoted by real estate developers) in the first three months of the year. The average price dropped by 15 percent compared with Q4 2019 to $2,452 per square meter.

JLL commented that investors were still trying to maintain prices they set before the epidemic outbreak. However, if the situation becomes worse, investors may consider lowering prices.

Chi Mai 

Measures fit for real estate recovery

The ongoing coronavirus pandemic has upended economies worldwide, and Vietnam must take urgent measures to handle this period of instability.

Experts: industrial real estate faring well in 2020

Foreign investors are planning to expand their operations in Vietnam this year, creating an opportunity for industrial property development despite the COVID-19 pandemic, according to experts.