Resettlement land wasted in capital city hinh anh 1Hanco3’s deserted resettlement buildings in Sai Dong New Urban Area. (Photo:

Hanoi (VNA) - The Hanoi Construction Joint Stock Company No 3 (Hanco3)’s proposal to demolish three resettlement buildings which have been deserted for a decade caused a stir over the huge waste of State resources, with the capital facing a severe shortage of resettlement homes and cheap housing.

The three buildings with a total of 150 apartments were completed in 2007 in Sai Dong New Urban Area, Long Bien district, for residents which were affected by the project to expand Sai Dong Street, Long Bien district. However, no residents moved into the apartments, leaving the buildings deserted and suffering from severe degradations.

Tran Van Phat, a resident in Sai Dong New Urban Area, said that demolishing these buildings was wasteful considering Hanoi’s shortage of affordable housing.

One citizen asked why the developer did not sell these apartments at reasonable prices instead of demolishing them, adding that many people would want to buy them at better prices.

According to Vu Ngoc Dam, Head of Urban Development Department under the municipal Department of Construction, the developer was required to hire a consultant agency to evaluate two options, repairing and upgrading the project or demolishing and rebuilding it. However, the developer did not report on this to authorities by a September 30 deadline.

It is estimated that there are about 1,000 resettlement apartments deserted in the city, according to the municipal construction department.

Each year, the city spends about 2 trillion VND (87.7 million USD) on resettlement housing projects, an insufficient amount to satisfy demand.

A representative from Cau Giay district People’s Committee said construction and services quality of resettlement housing projects were poor, and together with a shortage of surrounding infrastructure and facilities, people didn’t want to live there.

Recently, the municipal People’s Committee proposed the Government put in place a special mechanism to order developers to build 22,300 commercial apartments to add to the housing stock for resettlement by 2020.

According to Dam, with this mechanism, quality of homes for resettlements would be improved and the accountability of developers would be enhanced.

Hanoi started piloting this mechanism for six projects with a total of more than 4,300 apartments which were expected to be completed by 2020.

Hanco3 reportedly wanted to demolish their three deserted buildings to build commercial apartments for resettlement as part of the city’s pilot.

The city aims to complete land clearance for about 2,700 projects by 2020 which would require resettlement for more than 19,000 households.-VNA