Multimillion-dollar housing project in Ho Chi Minh City in limbo for 7 years

Despite completing the foundation and three basement levels, construction has come to a standstill since 2018 out of legal hurdles related to land.

Located at 428-430 Nguyen Tat Thanh Street in Xom Chieu Ward, known as part of the former District 4, the site now resembles an abandoned construction zone.

Under the national merger policy, which took effect on July 1, Xom Chieu Ward in Ho Chi Minh City was formed by merging Wards 13, 16 18 and part of Ward 15 of District 4.

Rusted steel bars and stagnant water have transformed the site into a potential health hazard.

The unfinished basement, resembling a massive pool, poses risks of soil erosion and mosquito-borne diseases for surrounding residents.

A representative from Trung Thuy Lancaster Joint Stock Company, the project's investor, told Tuoi Tre (Youth) newspaper that the legal impasse over the land parcel has prevented the progress of the project, which has been delayed since 2018.

The key issue lies with a 542.1-square meter piece of land under state management, which is sandwiched between two plots already owned and certified to the developer.

According to the municipal Department of Agriculture and Environment, this sliver of land is too small to be developed independently, prompting the recommendation that it be officially transferred to the investor to unify the project area.

Without this transfer, the project cannot secure the final construction permits or resume development.

The firm has called for a dedicated mechanism to expedite the allocation of the public land piece to prevent further losses and ensure efficient land use.

During the delay period, the investor, related firms, and homebuyers have got into hot water.

TTLand, the brokerage firm responsible for marketing and selling housing units of the project, filed for dissolution in November 2024 owing to prolonged delays and an inability to generate revenue.

To protect customer rights, Trung Thuy Lancaster has pledged to assume all obligations from TTLand’s existing contracts, offering buyers the choice of contract termination with full refunds or continued engagement under revised terms.