VietNamNet Bridge – The auction of 23 land plots located in the most advantageous positions in the city is expected to be the biggest event of the real estate industry in 2016.
The land plots, called ‘golden soil’ because of their high value and advantageous positions, now belong to the State, located in the districts of 1, 5, 7, Binh Chanh and Thu Duc, with the total area of 137,700 square meters.
The decision by the state to sell land plots has been praised as a move because it can help solve two urgent problems.
First, the existing real estate projects in HCM City still are not commensurate with the stature of a city with the highest urban development growth rate in the country.
Jones Lang LaSalle, a real estate consultancy firm, noted that by the end of 2015, HCM City had had only nine construction works with beautiful architecture with typical features for a modern city, a modest figure compared with other regional cities.
|The land plots, called ‘golden soil’ because of their high value and advantageous positions, now belong to the State, located in the districts of 1, 5, 7, Binh Chanh and Thu Duc, with the total area of 137,700 square meters.|
Meanwhile, if the 23 land plots can be exploited well by investors, the construction works could improve the city’s landscape.
Second, the sale of land will bring high revenue to the city’s budget, as the city now needs billions of dollars to develop infrastructure items, including the subway system.
An analyst commented that HCM City seems to be a bit slow in taking full advantage of the real estate market recovery to auction the land plots.
Meanwhile, in Hanoi, the market has been very busy with auctions of many land plots in prime positions.
These include the auction of Kim Lien Hotel on Dao Duy Anh street and the sale of the land plot at No 120 Quan Thanh street in Ba Dinh district.
A report showed that Hanoi earned VND3.2 trillion from the auction of land use rights in 2015.
Who could be the buyers?
In fact, HCM City authorities once tried to sell a land plot at No 23 Le Duan street in district 1.
However, the deal failed because the winner at the auction, Tan Hoang Minh Group, later refused to pay VND1.43 trillion to buy the 3,000 square meter land plot, accepting the loss of the deposit worth tens of billions of dong.
Sources said Tan Hoang Minh decided to quit the deal because of unclear policies on how the land plots investors can develop.
Investors don’t know how many stories the construction works on the land can have, how high they can be, and the percentage of apartments they can build and sell.
The decision by Tan Hoang Minh has raised concerns that the other land plots may not be for sale.
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