According to the latest plan of the Ho Chi Minh City People's Committee, 3,790 Thu Thiem resettlement apartments in An Khanh ward will be divided into smaller blocks to be put up for auction.
These apartments are located in 5 blocks from R1 to R5, divided into two groups including the group of three blocks R1 - R3 with 2,220 units and the group of two blocks R4 - R5 with 1,570 units.
The difference in this auction is that Ho Chi Minh City will organize it into two block house groups and after completing the procedures, the apartments will be put into use for commercial housing purposes.
According to the roadmap, right in March, An Khanh ward will complete the appraisal and approval of planning adjustments in the direction of optimizing architectural indicators and improving land use efficiency.
Next, in March and April, functional agencies will select valuation units to determine the starting price and find asset auction organizations before officially organizing the auction in May.
The Ho Chi Minh City People's Committee assigned the Department of Agriculture and Environment to take the lead in monitoring the progress, closely coordinating with relevant units to carry out auction procedures, collect winning bids and complete legal procedures for buyers.
Putting the housing fund formed from this budget capital to auction aims to effectively exploit public assets, avoid waste, supplement budget revenue and increase supply for the real estate market that is thirsty for products.
Thus, next May will be the 5th time Ho Chi Minh City puts 3,790 resettlement apartments up for auction. The first time in 2017, the starting price was offered at 8,800 billion VND. By February 2018, the price increased to more than 9,100 billion VND, but the auction still failed because there were no buyers. In June 2021, the City continued to auction at 9,900 billion VND, divided into two bidding packages for businesses, but the result was still zero. Most recently, the fourth auction in 2023 also did not bring the expected results.
Commenting on the reasons leading to previous failed auctions, Mr. Le Hoang Chau - Chairman of Ho Chi Minh City Real Estate Association (HoREA) said that the biggest bottleneck lies in the lack of clarity in legality and planning.
According to Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association (HoREA), the biggest bottleneck that caused previous auctions to fail lies in the lack of legal clarity and planning. Auctioning according to the current status of resettlement houses forces investors to spend large amounts of money but receive products with old designs, limited areas and unsynchronized amenities, not commensurate with the position of Thu Thiem new urban area.
On the other hand, having to wait until after winning the auction to apply for adjustment of the 1/500 detailed plan also hides too many risks when there is no definite guarantee of approval.
In this 5th auction, Ho Chi Minh City has proactively changed its approach by announcing the planning adjustment orientation in advance, helping investors understand the possibility of demolishing or renovating existing works to rebuild according to new standards.
In particular, allowing raising floors and increasing land use coefficients is considered a key factor in improving financial efficiency, bringing investment options closer to the actual needs of the market.
Also according to Mr. Le Hoang Chau, An Khanh area, adjacent to Thu Thiem new urban area, has the potential to become a new highlight if it is planned and developed methodically, in line with the orientation of building an international financial center in the future.
