Korean property developer Inpyung has decapitated its planned 30-40 storey tower blocks

The gigantic 30 to 40 storey blocks have been dramatically scaled back to 23 to 27 storeys. The height adjustments were announced by the Hanoi Architecture and Zoning Department, applicable for the entire Van Phu New Residential Area where Daewoo Cleve is situated.

Inpyung has made the cuts as costs rise on higher blocks. The cost-cutting has also followed a decline in apartment values in the area over the last two years, causing Inpyung to restructure its designs and prices to woo customers.

The decision to reduce the heights of buildings at Daewoo Cleve may include in a plan to restart the project, which has been delayed for the last three years.

Once slated as the biggest apartment project in the west of Hanoi, Daewoo Cleve was intended to be a high-end apartment project with a ‘strongly Korean style’ in Hanoi.

Beginning construction in 2010 with a plan of constructing 15 high-rise buildings including more than 4,500 apartments, Daewoo Cleve’s first two blocks were planned to be handed over to buyers by the end of 2013 and the whole project will be finished in 2018. However the project was stalled after a year of construction, at six storeys and had remained untouched since then.

Daewoo Cleve is one of many Korean real estate developments affected by the down-turn in Vietnam’s real estate market. Among those Booyoung Vina also located in Hadong district has been delayed for more than six years and the financial capacity of its investor – Booyoung International remains in doubt.

Meanwhile, other on-going foreign-invested projects face different troubles. Posco E&C, a partner in a joint venture to develop the $2.1 billion Splendora development in Hanoi, is facing heated complaints from its customers.

Customers in another Korean backed project – Hyundai Hillstate, are suing the developer – Hyundai RNC Hatay over management fees, the deliberate miscalculation of apartment space and low quality construction.

Many others face worse fates. Daewon Binh Khanh Investment Company, an affiliate of Korea’s Daewon in early 2012 withdrew from the 2,200 apartment Binh Khanh Resettlement Residence project in Ho Chi Minh City.

In another project, GS Cu Chi Development Co., a subsidiary of Korea’s GS Engineering & Construction Corporation in March 2012 sold its 200 hectare 36-hole golf course project in Cu Chi district, Ho Chi Minh City to Vietnam’s C&T Group.