Buyers gathered to protest construction price hike
The contract also provides that construction cost for building the 3.5-storey house on the land is temporarily estimated at $19,355. The developer is now asking Vinh to pay construction cost of $62,338. The developer was not available for comment last week on the sky-rocketing construction costs. Buyers said the rising prices of building materials were the main reason behind the increase.
However, Vinh said the hike was so significant that she could not pay. “We checked our pocketbook before making decision. However, it is now out of my family’s financial standing as we are both civil servants,” said Vinh.
Like Vinh, another customer Nguyen Bich Thu is also worried. “According to the initial design, my house is 3.5-storey high with a 216sqm floor space. However, it is now designed as a four-storey house with 50sqm added. A big amount of money will be added for our house. How can we earn enough money to meet the new price?” Thu said.
Facing the same situation, Ngo Thi Minh Huong also expressed her anger as no one from the company was able to answer her questions. Construction costs of Huong’s house has been increased from $19,355 to $62,338. She directly sent a protest about the price hike to Nguyen Tri Dung, general director of the company, but has not received any reply.
According to both Huong and Thu, customers are ready to sympathise with the investor as the price of building materials had increased. “But, everything that arises during the construction process must be discussed between customer and investor according to article 12 of the signed contract,” said Thu.
Van Khe Resident Area that located in Ha Tay’s Ha Dong broke ground last year, covering 23.9 hectares with total investment capital of $14.6 million. Under the plan, it will be developed into a modern resident area by the last quarter of 2010. It will comprise 94 villas, 832 apartments in 11 buildings, shopping centres and schools.
Nho Trung (vir.com.vn)