Clearing the resettlement area
The Thu Thiem urban area, boasting a prime location and spanning 930 hectares (including 770 hectares for the new urban area and 160 hectares for resettlement), has long been considered a "gold mine" of Ho Chi Minh City. However, for many years, a large amount of public assets here have remained underutilized; this includes the resettlement area with thousands of vacant apartments and land plots that were previously auctioned but never successfully developed.
According to the plan, Ho Chi Minh City will hold its 5th auction of 3,790 resettlement apartments this May. A new feature of this auction is the division of assets into two groups to increase attractiveness and broaden the pool of participants.
Specifically, Group 1 includes lots R1, R2, and R3 with approximately 2,220 apartments; Group 2 includes lots R4 and R5 with approximately 1,570 apartments. This smaller scale is expected to reduce initial financial pressure on investors, thereby attracting more businesses to participate.
According to experts, the nature of this auction is not just about selling already built apartments, but essentially about transferring the right to redevelop a rare plot of land in the heart of Thu Thiem. This opens up significant opportunities for investors to renovate, or even demolish, existing structures to build new projects.
Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association, stated: “The planning in this area has undergone significant adjustments, including a 90-fold increase in the land use coefficient and adjustments to building heights, which can reach approximately 40-45 floors. These changes are expected to create more favorable conditions for investors participating in the auction. Accordingly, winning bidders can consider demolishing all existing temporary housing structures to implement new projects according to the approved plan.”
Some experts suggest considering a maximum land-use ratio of around 15 times, equivalent to many existing high-rise projects in the area. Increasing the land-use ratio would increase the total built-up floor area, thereby enhancing the project's value and attractiveness.
Currently, real estate prices in Thu Thiem are already high, ranging from 200 to 300 million VND/m², and even higher in some locations. Expanding the planning indicators is considered a key factor to ensure financial feasibility.
Tighten auction conditions to avoid repeating past scenarios.
Besides the resettlement area in An Khanh ward, the plan to auction off 7 "prime land" plots in Thu Thiem has also been restarted. Accordingly, in 2026, Ho Chi Minh City plans to auction off the land use rights for 7 land plots in the Thu Thiem New Urban Area.
The list includes lots 3-8, 3-9, 3-12 (Functional Zone 3); lots 7-1, 7-17 (Functional Zone 7); lot 1-12 (Functional Zone 1) and lot 4-21 (Functional Zone 4). These are all land plots with completed technical infrastructure and basically finished compensation and land clearance work, ready to be put on the market.
The upcoming auction will not only generate revenue for the budget but may also establish a new benchmark price for the entire region. In a market that needs a major turning point to recover, putting large land plots up for auction is expected to help unlock resources.
However, the lessons learned from the 2021 auctions, where the cancellation of deposits disrupted the market, remain relevant. Therefore, this auction is expected to have a more rigorous, substantive approach and focus on sustainable value.
According to experts, the key factor is ensuring transparency in the auction process and establishing a pricing mechanism that closely reflects market conditions. The formation of working groups comprising independent valuation experts is considered a necessary solution to determine reasonable prices.
Valuation criteria should be based on multiple factors such as project scale, development type, location, and market absorption rate. In addition, the brand value that investors receive from owning prime real estate is also a crucial factor. One of the highlights of this auction is the tightening of participation conditions to limit speculation and deposit forfeiture.
Experts suggest that the entire project "lifecycle" after the auction needs to be monitored, with a focus on the financial capacity and implementation capabilities of the investor. The evaluation should include the financial structure, debt ratio, and experience in implementing similar projects in the past.
In addition, close coordination between regulatory agencies such as tax, finance, and banking is necessary to monitor the project implementation process. This is considered an important "technical barrier" to ensure the seriousness and effectiveness of the auction process.
Real estate experts believe that if the land auction is conducted properly, it will create a major boost for the market; conversely, if management is lax, it could lead to the risk of creating "speculative bubbles".
In the first three months of 2026, revenue from land use fees in Ho Chi Minh City reached nearly 8,900 billion VND, demonstrating the increasingly important role of land resources in the budget structure.
According to the Ho Chi Minh City Institute of Resource and Environmental Economics , the efficient exploitation of public land, especially in the Thu Thiem urban area, should be prioritized in the goal of combating waste and optimizing resources. Some other land plots are being auctioned off for conversion of use or paid for by investors under the Build-Transfer (BT) model. These are considered important solutions for reallocating land resources.
However, economic experts also point out that the key factor determining the attractiveness of auctioned land plots is the land use ratio and building height after winning the auction. Previously, resettlement projects often struggled to attract investors due to limited market demand. Now that they have been converted to commercial housing, the potential is clearer, but specific planning indicators such as land use ratio and building height still need to be clarified. "Businesses always aim for profit, so if the functionality is maximized according to the plan, investors will be more confident in participating," an economic expert emphasized.
If the auction is successful and includes a mechanism that allows for maximum utilization of space and time, the value of real estate in Thu Thiem will increase sharply; at the same time, it will bring tens of trillions of VND in revenue to the city's budget.
"When the technical infrastructure system, transportation network, especially the metro lines, are invested in synchronously, this area has great potential to become a leading real estate area in the region," a representative of the Ho Chi Minh City Real Estate Association commented.
Source: https://baotintuc.vn/bat-dong-san/cu-hich-cho-thi-truong-bat-dong-san-tu-dat-vang-thu-thiem-20260430150608093.htm
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