11/03/2025
HCMC will hold an auction for multiple land plots in the Thu Thiem New Urban Area, Thu Duc City. In the article below, Achieve Realty VN provides detailed information.
Auction timeline:
- Expected to begin in Q2 2025.
- The first land lots will be auctioned in June 2025.
- From July 2025 to 2026, Ho Chi Minh City is expected to continue auctioning the remaining land lots.
Auctioned land lots:
- In the initial phase, Ho Chi Minh City will focus on auctioning three land lots: 1-2 and 1-3 in Functional Area 1, and 3-5 in Functional Area 3.
- Afterward, the city plans to continue auctioning other land lots in Functional Areas 1, 3, and 7, including lots 1-5, 1-6, 1-9, 1-10, 3-8, 3-9, 3-12, and 7-1.
- The estimated starting price for all lots exceeds 5,000 billion VND.
Objectives:
- The auction aims to develop the Thu Thiem New Urban Area, transforming it into a modern financial, commercial, and service hub of Ho Chi Minh City.
- After the first three land lots are successfully auctioned, the city will evaluate lessons learned before proceeding with further auctions.
Current status:
- The Ho Chi Minh City People’s Committee has issued a plan for auctioning land lots in the Thu Thiem New Urban Area.
- Authorities are currently processing the necessary procedures to prepare for the auction.
- For the remaining land lots, the People’s Committee has assigned the Department of Planning and Architecture to coordinate with Thu Duc City in adjusting planning, compensation, and land clearance procedures before conducting the auction to select investors.
The Thu Thiem New Urban Area is a key project of Ho Chi Minh City, and the auctioning of land plots here is expected to attract major investors, contributing to the city's economic development.
The status of land auction contract settlements in the Thu Thiem Urban Area. Achieve Realty VN will provide more detailed insights on this matter.
Context:
In 2021, Ho Chi Minh City conducted an auction for land use rights for four land lots in Functional Area No. 3, Thu Thiem.
The auction results created a "fever" as businesses won the bids at exceptionally high prices, with some lots reaching up to VND 2.4 billion per square meter.
However, afterward, the winning enterprises faced difficulties in paying the land use fees.
Current situation:
- During 2024-2025, Ho Chi Minh City is processing the termination of auctioned property purchase contracts signed with the auction winners for these four land lots (3-5, 3-8, 3-9, 3-12).
- The primary reason for contract termination is the violation of land use fee payment regulations by the winning enterprises.
- The city's authorities are carrying out legal procedures to terminate the contracts and reclaim the land lots.
Finalizing the handling of these auction contracts is a crucial step for Ho Chi Minh City to stabilize the real estate market in Thu Thiem.
This also demonstrates the city's firm stance on ensuring transparency and legal compliance in land auctions.
Successfully resolving this issue will allow the city to re-auction these land lots according to its planned urban development strategies.
Additional information:
- The termination of auction contracts will involve legal matters related to deposits and other fees previously paid by the enterprises.
- The Ho Chi Minh City People's Committee has assigned the Department of Planning and Architecture, in coordination with Thu Duc City, to adjust planning, compensate, clear the land, and organize a new auction to select investors for the remaining lots.
- The Ho Chi Minh City Land Development Center has issued official notices on exercising its right to unilaterally terminate the auctioned property purchase contracts.
This issue has garnered significant public attention, and its successful resolution will help build investor confidence in Ho Chi Minh City's real estate market.
According to the detailed auction plan, Ho Chi Minh City will focus on three specific land lots in the new Thu Thiem urban area. Achieve Realty VN will provide further details.
Auctioned land lots:
- Lot 1-2 (7,800m²): Planned for multi-functional residential development.
- Lot 1-3 (5,000m²): Planned for multi-functional residential development.
- Lot 3-5 (6,500m²): Planned for a mixed-use apartment complex with integrated commercial and service functions.
Auction timeline:
Expected to take place in June 2025.
Land lot locations:
- Lots 1-2 and 1-3 are located in Functional Area No. 1.
- Lot 3-5 is located in Functional Area No. 3.
These land lots are in a prime location within the Thu Thiem Urban Area, promising to attract significant interest from investors. The successful auction of these lots will play a crucial role in the development of Thu Thiem Urban Area in accordance with the master plan.
After completing the auction of these first three lots, Ho Chi Minh City will continue to auction the remaining land lots in the Thu Thiem Urban Area. Detailed information is provided below:
Next phase (From July 2025 to 2026):
Auctioned land lots:
- Functional area No. 1: Lots 1-5, 1-6, 1-9, 1-10.
- Functional area No. 3: Lots 3-8, 3-9, 3-12.
- Functional area No. 7: Lot 7-1.
Implementation timeline:
- Expected from July 2025 to 2026.
Sports and Entertainment Complex 2C:
Planning:
- Comprising six land lots.
- The People's Committee of Ho Chi Minh City (HCMC) assigns Thu Duc City to coordinate with the Department of Planning and Architecture to carry out the procedures for adjusting the 1/2000-scale zoning plan and the 1/500-scale detailed construction plan in accordance with regulations.
Investor selection:
The Department of Natural Resources and Environment is responsible for submitting to the HCMC People's Committee a proposal to select an investor through an auction process.
Key highlights:
- The continued auctioning of land lots in Thu Thiem demonstrates HCMC’s commitment to developing this urban area.
- The Sports and Entertainment Complex 2C is a crucial project that will contribute to creating recreational facilities for city residents.
- The adjustment of zoning plans and investor selection through auctions ensures transparency and project efficiency.
The successful auction of these land lots will play a crucial role in developing the Thu Thiem urban area according to the planned framework, transforming it into a modern financial, commercial, and service hub of Ho Chi Minh City.
For land lots 1-12 and 1-20, the following key points should be noted:
Land compensation and site clearance:
- Thu Duc City People's Committee will report to Ho Chi Minh City People's Committee on the progress of land compensation and site clearance.
- This highlights that site clearance is a crucial and necessary step before proceeding with the auction.
Investor selection:
- The Department of Natural Resources and Environment has been assigned to submit a proposal to the City People's Committee for the selection of investors through an auction process.
- Selecting investors via auction ensures transparency and fairness.
These details indicate that:
- Ho Chi Minh City is carefully preparing for the auction of land lots in Thu Thiem.
- The site clearance and investor selection process is being carried out rigorously, ensuring legality and efficiency.
Successfully auctioning these land lots will play a significant role in developing Thu Thiem Urban Area according to the master plan, transforming it into a modern financial, commercial, and service hub of Ho Chi Minh City.
Controlling the financial capacity of investors participating in the Thu Thiem land auction is a key measure introduced by Ho Chi Minh City to prevent price inflation and deposit forfeiture, as has occurred in the past.
Key points related to this issue:
Objectives:
- Prevent financially incapable enterprises from participating in auctions, which leads to artificially high bidding prices and subsequent forfeiture of deposits.
- Ensure that winning bidders have the financial capacity to execute projects according to planning and timeline.
- Promote a more transparent and fair auction market.
Solutions:
- Conduct thorough financial capability assessments of bidding enterprises, including equity capital, fundraising ability, and credit history.
- Require enterprises to provide financial commitments and feasible business plans.
- Implement evaluation criteria for experience, project execution capability, and financial strength of investors.
- Strengthen penalties for violations of auction regulations, including forfeiture of deposits and bans from future auctions.
Strict entry control will ensure the sustainability and effectiveness of projects in Thu Thiem.
This also helps build trust among legitimate investors and fosters the healthy development of Ho Chi Minh City's real estate market.
Entry control is one of the key solutions to ensure the transparency and effectiveness of land auctions in Thu Thiem.
The statement by Mr. Vo Van Hoan, Vice Chairman of the Ho Chi Minh City People’s Committee, clearly reflects the city's stance on tightening control over the financial capacity of investors participating in land auctions in Thu Thiem. Detailed analysis points:
1. Clear objectives:
Eliminating “virtual” investors:
- Mr. Hoan emphasized the removal of newly established enterprises with excessively low charter capital and insufficient financial capacity to execute projects.
- This measure aims to prevent price inflation and deposit forfeiture, which negatively impact the real estate market and the city's credibility.
Selecting investors with genuine capability:
- Priority is given to businesses with strong financial capacity, relevant experience, and genuine dedication to their projects.
- This ensures that projects are implemented efficiently, on schedule, and bring real value to the city.
2. Specific screening criteria:
Financialcapability:
- Charter capital, fundraising ability, and credit history.
- Exclusion of companies with excessively low charter capital, unable to execute projects.
Experience:
- Track record in executing similar projects.
- Project management and operational capabilities.
Commitment:
- Adherence to project planning and timeline commitments.
- Contributions to the development of the Thu Thiem urban area.
3. Key significance:
Establishing a transparent market:
- Investor screening helps create a fair and transparent auction market.
- This strengthens the confidence of legitimate investors and promotes sustainable development in the real estate sector.
Ensuring project efficiency:
- Selecting capable investors ensures efficient project execution, adherence to schedules, and real value for the city.
- This prevents project stagnation, avoiding resource wastage.
Enhancing the city's reputation:
- Strengthening investor capability control demonstrates the city’s commitment to managing the real estate market effectively.
- This enhances Ho Chi Minh City’s credibility in attracting investment.
The statement by Mr. Võ Văn Hoan is a strong message, demonstrating Ho Chi Minh City's determination to regulate the land auction market in Thu Thiem, ensuring transparency, efficiency, and sustainability of the projects.
Below is a comparison table of the auction results for four land lots in Function Area No. 3, Thu Thiem in 2021:
|
Lot |
Enterprise |
Winning bid price (billion VND) |
|
3-12 |
Ngôi Sao Việt Real Estate Investment Co., Ltd. |
24.500 |
|
3-9 |
Bình Minh Investment, Development, and Trading Co., Ltd. |
5.026 |
|
3-8 |
Sheen Mega Joint Stock Company |
4.000 |
|
3-5 |
Dream Republic Joint Stock Company |
3.820 |
The auction-winning price for Lot 3-12 in Thu Thiem was significantly higher than the other lots. Specifically:
- Lot 3-12: The auction-winning price was 24,500 billion VND, equivalent to approximately 2.4 billion VND per square meter.
- Other lots: The auction-winning prices ranged from 5,000 billion VND to 10,000 billion VND.
Reasons for the price discrepancy:
- Prime location: Lot 3-12 is considered the most desirable plot among the auctioned lots, offering a view of the Saigon River and the city center.
- Large land area: Lot 3-12 has the largest area among the auctioned lots, allowing for large-scale developments.
- Development potential: Thu Thiem is planned to become Ho Chi Minh City's financial, commercial, and service hub, making Lot 3-12 highly attractive for future development.
The sky-high auction-winning price for Lot 3-12 in Thu Thiem has sparked debates and concerns about the feasibility of the project. Key issues raised include:
Reasonableness of the price:
- The 2.4 billion VND/m² price is considered excessive, far surpassing the actual real estate market value in Thu Thiem at the time.
- Many experts fear this price will create a domino effect, driving property prices higher in Thu Thiem and across the city, potentially destabilizing the market.
Project implementation feasibility:
- With such an extremely high auction price, investors face immense financial pressure to develop the project.
- Concerns arise that investors may struggle to secure funding, leading to delays or even project cancellation.
Risk of real estate speculation:
- The record-high auction price may fuel speculative behavior, encouraging people to rush into buying property in Thu Thiem in hopes of quick profits.
- This could lead to a real estate bubble, with severe economic consequences.
Urban planning issues:
- The excessively high auction price may force investors to maximize profits by any means, potentially disrupting the overall urban planning of Thu Thiem.
These concerns have led to public scrutiny regarding the transparency and effectiveness of Thu Thiem's land auctions.
