The People’s Committee of Ho Chi Minh City has just assigned the City Department of Natural Resources and Environment to complete the auction documents for 3,790 resettlement apartments in Thu Thiem new urban area, in Binh Khanh ward, Thu Duc city. The number of apartments to be auctioned has a total land area of ​​more than 38.4 hectares, in a total of 12,500 apartments for resettlement in Thu Thiem new urban area. The project was completed in 2015, located in the center of the old district 2 (now Thu Duc city), convenient to move to the central districts of the city. These apartments were auctioned in 2017 with a starting price of VND 8,800 billion and in 2018 with a price of VND 9,100 billion, but no businesses or investors were interested.

According to the Department of Natural Resources and Environment of Ho Chi Minh City, these resettlement apartments will be divided into 2 packages for auction. Specifically, the first package has 1,570 apartments, including 11 apartment blocks of 2 lots R4, R5 with more than 31,800 m2 of land; The other package has 2,220 apartments, including 14 apartment blocks in 3 lots R1, R2 and R3 on an area of ​​​​more than 47,000 m2 of land.

Currently, the Department of Natural Resources and Environment has presented the certificate of appraisal of the starting price of the above assets to the City Price Appraisal Council for consideration and approval. After the starting price is approved and the competent authority issues the auction regulations, the information will be made public on the website of the Department of Natural Resources and Environment, the Hcmc Land Fund Development Center to invite eligible organizations and individuals to submit dossiers for participation in the auction. Although there is no official price yet, it is certain that the starting price will increase more than the previous price.

Thu Thiem new urban area – where the resettlement apartment project is about to be auctioned by Ho Chi Minh City Photo: ROYAL TRIAL

The People’s Committee of Ho Chi Minh City requests the units to complete the dossier of organizing the auction before June 15. After winning the auction, these resettlement apartments will be converted into commercial houses, with the right to buy, sell or transfer. If investors wish to invest in the construction of new projects in this land, they must propose the project to the People’s Committee of Ho Chi Minh City and then carry out construction investment procedures and perform additional financial obligations to the state as prescribed.

In order to support the city to successfully auction the above-mentioned apartments, recently, the Ho Chi Minh City Real Estate Association (HoREA) has sent a document to its member businesses, requesting interest in participating in the auction. In this document, HoREA assesses that the project has the advantage of being located in a prime location. The investor who wins the auction will definitely raise the brand’s reputation. If there is a need to invest in a new project at this location, which is considered and approved by the City, it will increase the brand reputation for investors.

However, an experienced enterprise implementing many apartment housing projects said that although the project that tp is about to auction has a prime location, to attract investors, businesses boldly participate is not simple, because it is necessary to take into calculation many other factors such as : finance, mechanisms related to project operation later. Specifically, financially, if the starting price is more than VND 10,000 billion, not all businesses have enough potential to participate in the auction.

According to real estate experts, this is a big obstacle that caused the previous two auctions to fail. Due to the regulation of deposit up to 20% of the starting price, if you win the auction, you must pay 50% of the winning bid value within 1 month and the remaining 50% within 90 days. The amount of money is large but the payment time is too short, so no investor is “satisfied”. While to deploy a new project, the investor only needs to spend 20%-30% of the reciprocal capital and can mobilize from customers, the costs are quite comfortable and the interest pressure, financial costs are much reduced. . So they can choose to implement new projects of their own more easily.

Not to mention, the policy of the city is to auction the whole lot, collect money once, so the participants in the auction are limited to businesses and organizations, and it is very difficult for individuals to participate.

As an investment consultant for foreign companies, Dr. Ho Ngoc Khuong, Senior Director of Savills Vietnam, said that if the packages are broken down, each package of several hundred apartments will be favorable for investors to participate in the auction because it is easy to balance capital. , instead of splitting into 2 packages in such a large number. At the same time, the city can be divided into many auctions to gradually increase the starting price, like the commercial projects that businesses have done.

Mr. Le Hoang Chau, Chairman of HoREA, also said that if this re-auction is not successful, the city should calculate a discount plan. The reduction is about 10% and it is possible to subdivide each block of a few hundred apartments for auction instead of “wholesale” of thousands of apartments.

Concerned about the quality of the work

In the document to members, HoREA recommends that corporations and businesses should pay attention to some limitations of resettlement housing projects such as: quality of works, quality of materials, construction materials, equipment compared to commercial housing projects. There are also concerns about the quality of planning, building design, apartment design as well as utilities for residents. Therefore, HoREA suggests that investors need to study carefully and plan to renovate, renovate, upgrade and supplement utilities and services.

Source: nld.com.vn – Translated by fintel.vn