NEWS
War of words at $2bn Splendora project
16-10-2012
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The customers claim they have made big losses because the consumer price index (CPI) was used as a barometer for charging semi-detached houses and villas with poor materials in this project.
Now, they want the South Korean developer to throw the calculation method in the rubbish bin.
Nguyen Thi Thai, a customer, claimed that the price for every metre of semi-detached houses and villas in this project was quoted as VND35.6 million ($2,000) in 2009. However, by applying the CPI for a new price, the cost for a villa or house had increased by VND1-4 billion.
Another customer, Nguyen Thi Kim Loan claimed the developer had used poor quality materials for building, while others claimed that they could not move into their houses due to a lack of infrastructure, as markets, a school and health care centre had not been set up.
“We cannot move to live in a place without theses necessities,” Thai said.
In a meeting between developers and customers recently, buyers required the developer to wipe out the CPI-based price calculation and slash down the payments due to the poor quality materials.
Hoang The Trung, deputy director of Posco E&C-Vinaconex joint venture, said inflation had been changed a lot since 2009 then the developer had to use CPI for calculating a house’s price.
“Buyers should share those difficulties with us,’ Trung said.
Regarding the buyer’s concerns on the shortage of infrastructure facilities, Trung said the joint venture was planning the construction of those facilities. Splendora was started in 2006 with investment capital of $2.1 billion and is being developed as a joint venture between Posco E&C and Vinaconex.
On 264 hectares located on Thang Long Avenue, the first phase of the project covers 50ha and is scheduled to finish in 2013 including villas, terrace houses, apartments, mixed-use buildings, commercial, business and services centre, sport centre, outdoor swimming pool, tennis court and green park.
The second phase was just started this year on 75ha to develop apartments, villas and terrace houses.
