Urban area worth over 100 billion VND is deserted
According to Lao Dong Newspaper reporters, the Urban, Commercial and General Service Residential Area Project in the Southeast of Ky Anh District, located on National Highway 1A, has been completed for nearly 10 years but is still deserted, full of weeds, and has no residents.
While the items of a residential area have all been fully invested in, including: Power, roads, drainage ditches, trees...
The project was initially called the Northern Urban, Commercial and Service Infrastructure of Ky Anh Town, Ky Anh District (phase 1) approved by the People's Committee of Ha Tinh Province in 2015.
To build the project, Ky Thu, Ky Van and Ky Tan communes (Ky Anh district) had to give up a land area of more than 17 hectares to build an urban residential area with 88 plots of land. The project is invested by the Ha Tinh Provincial Land Fund Development Center with a total investment of more than 192 billion VND.
Of which, the construction cost is more than 114 billion VND, the equipment cost is more than 7 billion VND, the project management cost is more than 1.5 billion VND, the construction investment consulting cost is more than 7.2 billion VND, and the contingency cost is more than 13 billion VND. The cost of compensation and site clearance alone is more than 46 billion VND.
After completing the infrastructure, the People's Committee of Ha Tinh province issued a decision approving the starting price and price step to auction the land use rights for 88 plots of land in the project.
Accordingly, 88 plots of land have areas ranging from 130 m2 to 523 m2, with starting prices determined from 960 million VND to 3.94 billion VND. The price range from 45 million VND to 195 million VND depending on the area and location of the land plot.
However, after that, no one submitted documents to participate in the auction. Many auctions were unsuccessful in the future, with no participants.
New prices to be approved for re-auction
On April 10, Mr. Nguyen Van Cuong - Deputy Director of the Center for Land Fund Development and Land Use Technical (Ha Tinh Department of Agriculture and Environment) - said that the Urban, Commercial and General Service Project in the Southeast of Ky Anh district has been auctioned many times but failed, and no one has submitted an auction dossier due to the high starting price.
Recently, due to changes in the Land Law and waiting for new guidance Circulars, the organization of auctions has not been implemented.
After Circular 20 of the Ministry of Justice stipulates that the mechanism and policy on the price of property auction service has taken effect from January 1, 2025, it is expected that in the next week, Ky Anh District People's Committee will be the starting price approval agency to organize the auction of land lots of urban, commercial and general services in the southeast of Ky Anh district. In the immediate future, the first auction will be held with about 20-30 plots.
According to Mr. Cuong, after completing the procedures, the auction is expected to be held in April, and at the latest in May 2025.
"This time, the approval of the starting price is expected to be more suitable, so I believe that many people will submit auction documents. The auction is likely to be successful" - Mr. Cuong shared.
After successfully organizing the first auction, the next auctions will also be organized to soon complete the sale of all 88 plots of land of the project, avoiding prolonged waste.
