According to the Ho Chi Minh City People’s Committee Office, at least three real estate companies have officially submitted bids to auction 3,790 resettlement apartments in the Thu Thiem New Urban Area.
Prominent Developers Join the Auction
Specifically, SonKim Land has submitted a bid for all 3,790 apartments across blocks R1, R2, R3, R4, and R5 in An Khanh Ward, Ho Chi Minh City. They have also proposed a plan to develop and exploit the project.
SonKim Land seeks approval to research and plan urban development in two key areas: the Suoi Tien Bus Station metro station and the Thu Thiem railway station, focusing on public transportation-oriented development.
Earlier, a consortium of Sunshine Group and DIA Investment also submitted a bid for the same number of apartments.
Sunshine Group suggests converting the apartments into commercial units for rent or sale, or developing a mixed-use complex. With the project’s scale, they can leverage capital advantages and phased market distribution.
Additionally, Bcons Land, a major real estate developer in the area bordering Ho Chi Minh City, has expressed interest in the resettlement project auction.
Aerial view of the Thu Thiem resettlement housing complex
These apartments were part of a 12,500-unit program for residents displaced between 2013 and 2015. The 3,790 units in blocks R1 to R5, completed in 2015, remain vacant and deteriorating.
Despite multiple auction attempts, the city has failed at least four times. The latest auction set a starting price of nearly VND 10 trillion, up from VND 8.8 trillion, but still attracted no buyers.
Meanwhile, the city spends tens of billions of dong annually on maintenance and management for these unoccupied, revenue-free units.
What’s the Solution?
To resolve this, in late August, Ho Chi Minh City approved a new auction plan. Instead of auctioning all units at once, the 3,790 apartments will be divided into two blocks: R1-R3 (2,220 units) and R4-R5 (1,570 units). This division has attracted more developer interest.
This explains why both high-end developers like SonKim Land and affordable housing specialists like Bcons Land are participating.
Aerial view of the Thu Thiem resettlement housing complex
According to Dr. Pham Viet Thuan, Director of the Institute for Environmental and Resource Economics (IEEr), converting the resettlement apartments into commercial housing offers a viable solution.
He believes that, beyond functional conversion, investing in infrastructure and developing surrounding urban amenities will enhance the area’s value, attracting investors to the auction.
Dr. Thuan also notes that the government’s push to encourage private investment and foreign capital in real estate creates favorable conditions for capital flow, including in Thu Thiem projects.
