Notable projects among those applied to be changed into budget ones are the Hung Dien residential-commercial project invested by Tan Hung Investment Joint Stock Company in an area of nearly 20 hectares in Binh Chanh District.
The project was launched noisily in 2008 with total investment capital proclaimed to amount to billions of U.S. dollars to develop high-end office building, commercial center, entertainment facilities and apartments.
According to the HCMC Department of Construction, the investor wants to convert a 34-floor building into a budget housing project with 2,716 apartments.
Meanwhile, Transport Engineering Construction and Business Investment Company 584 wants to convert its three projects in Go Vap and Tan Phu districts. If the applications are approved, around 2,250 low-cost apartments will join the market.
Similarly, Thu Thiem Investment Company also applies to convert the Thao Dien resettlement project with around 300 apartments, while Tan Binh Construction Investment Company wants to change its 480 apartments of the Tan Mai project in Binh Tan District into low-cost ones.
In addition to shifting projects to the low-cost segment, some investors also seek approval to divide apartments into smaller ones to meet the demand. For instance, Bao Gia Company has applied to change penthouses of The Flemington Tower in District 11 into apartments having an area of 86-116 square meters each.
According to observers, changing projects into low-cost ones may help remove difficulties for investors. However, it is too soon to say whether this move will work as investors need to see how homebuyers react to such housing model.
The HCMC Department of Construction said that it would submit to the municipal government registered projects and continue to receive new applications.