Big capitalists vie for golden land in HCM City

VietNamNet Bridge - Land prices not only depend on position, but also on urban development plans. 


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Land prices not only depend on position, but also on urban development plans. 

Le Chi Hieu, chair of Thu Duc House, commenting about the auction of land plots in Thu Thiem new Urban Area, noted that if HCM City authorities had raised the proportion of houses for sale to 30 percent, the land plots would have sold better.

In general, investors, when developing urban areas, expect to make profits from housing projects rather than other construction items. 

Meanwhile, city authorities decided that the area for shopping malls must account for 10 percent of the land fund, offices 80 percent, and houses 10 percent at maximum.

The land price in HCM City has once again become a hot topic of discussion as city authorities announced 23 valuable land plots in advantageous positions would be auctioned in 2016. 

It is estimated that at least two auctions would be organized by city authorities every month to be able to sell out all the land plots as scheduled. Meanwhile, private investors will have to arrange huge capital to join the game.

City authorities decided that the area for shopping malls must account for 10 percent of the land fund, offices 80 percent, and houses 10 percent at maximum.

Analysts believe the assets the state plans to put on sale are attractive enough to draw the attention of both domestic and foreign investors.

Novaland is one of the most powerful candidates. It was the real estate developer which acquired land plots in advantageous positions in district 4. It was the firm which teamed up with Sabeco to develop a complex project on Hai Ba Trung street.

The other potential player is Vingroup, the largest real estate developer at present. The group is looking for more large land areas to implement its plan on developing shopping mall chains. The group has pumped big money into the retail, education and resort sectors.

BRG Group owned by Nguyen Thi Nga, one of the most influential businesswomen, famous for impressive acquisition deals in 2015, is also a candidate.

In 2014, Phu Cuong JSC, a big shareholder of BRG, successfully acquired 38.69 percent of the Tran Phu Printing Company which owns 19,200 square meters of land in some central business districts.

The Refrigeration Engineering Enterprise (REE) also is a potential buyer. It vied for the Kim Lien Hotel in Hanoi, but did not succeed with the deal because the Thai Group of the famous businessman Nguyen Duc Thuy accepted to pay a higher price.

Meanwhile, analysts believe investors from Singapore, South Korea and Japan also eye the land plots.

In 2015, Keppel Land from Singapore bought a land plot from Tien Phuoc Company to develop Estella Heights in district 2. Meanwhile, Creed invested in Nam Bay Bay Real Estate Company.


NCDT

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