The Investment and Construction Authority for the Thu Thiem New Urban Area noted in a report to the HCMC government that these plots of land are divided into three categories based on the progress of land-use rights auctions and investor selection through bidding.
The first category includes 16 plots of land with a combined area of some 158,000 square meters. Site clearance has already been completed, and technical infrastructure facilities are being developed.
The agency stated that these plots will be available for the auction of their land use rights in the fourth quarter of this year. Some of them have been zoned for schools, trading and service centers and apartments, which are expected to bring in over VND4.7 trillion.
The second category covers a total area of 269,100 square meters with an estimated value of more than VND8.1 trillion. The plots of land will be subject to land-use rights sales and investor selection when the development of technical infrastructure is completed.
Zoned for a financial center, a performing arts center and hotels, among other things, these plots of land will be put up for auction next year.
The last category includes 23 plots of land spanning more than 365,000 square meters with estimated proceeds of over VND9 trillion. Site clearance has not been finished for this category.
Aside from the remaining land plots, the agency said the Thu Thiem New Urban Area has a total of 3,790 unused resettlement apartments that will be put up for sale for more than VND9.9 trillion (US$428 million).
The apartments are being developed by two property firms, with 2,220 units by Thuan Viet and the remainder by Duc Khai.
In May 2018, the Department of Construction pointed out that the redundancy of the large number of resettlement apartments had resulted from the relaxed compensation policy.
In the past, compensation for land taken from residents was based on State-fixed prices, which were always lower than market levels, so residents usually preferred ready-built resettlement apartments.
But now, land clearance compensation rates match market prices and the prices of resettlement apartments are higher than before. Affected people are more inclined to take the compensation money and look for homes they want.
Covering a total area of 657 hectares along the Saigon River in the eastern part of HCMC, the Thu Thiem Peninsula was originally expected to transform into a new commercial, financial, cultural and tourism hub, serving as an extension of the city’s overcrowded central business district.
The project was not aimed at developing the real estate industry but was expected to focus on public facilities, such as a central square, a riverside park, a financial center and an international exhibition and convention center.
The city government has so far paid nearly VND17.5 trillion in compensation to all but four of the 14,357 households affected by the project and has recalled 715.97 hectares of land. Financial support for these residents is higher than that offered by other similar projects.