Real estate giants hold more than 70% of the 'golden land' in Thu Thiem 4
Jones Lang LaSalle (JLL) Vietnam has just released the report `Thu Thiem – golden time`, revealing a variety of ways for real estate giants to access land funds in the new urban area expected to reach
The common way to access land fund in Thu Thiem is through a Build – Transfer (BT) contract.
Dai Quang Minh, a pioneer investor in Thu Thiem, with a series of large projects being implemented in both infrastructure and residential areas through BT.
These are the arc boulevard, the central lakeside road, the Saigon riverside road and the delta road through the southern ecological forest area, Thu Thiem 2 bridge and pedestrian bridge.
71% of land plots in Thu Thiem have been approved, most of which are in the hands of tycoons.
Similarly, Ho Chi Minh City Infrastructure Investment Joint Stock Company (CII) received about 90,000 m2 of land for long-term stable use (to build housing) and 6,000 m2 of land for 50-year use (for construction).
Phat Dat Real Estate Development Joint Stock Company has also been allowed by the People’s Committee to study the investment project to build Thu Thiem 4 bridge connecting Thu Thiem urban area and Nguyen Van Linh street, District 7.
In addition to BT, real estate giants can access Thu Thiem land fund through bidding.
Data from Thu Thiem Management Board, 16% of the total developable area will be invited to bid in the near future.
However, the challenge of Thu Thiem new urban area lies in the fact that the construction process of projects is still quite slow.
Most of the projects built in Thu Thiem today are housing projects.
JLL estimates that currently, most of the land fund in Thu Thiem has investors through many different forms of land allocation and cooperation.
This unit added that, as of the fourth quarter of 2017, there are still many investors looking for opportunities in Thu Thiem through acquisitions or joint ventures with reputable domestic partners.
Senior consultant of Global Integration Business Consulting Company (GIBC), Huynh Phuoc Nghia, once shared with VnExpress about the hidden corner of the halo that attracts investors to pour capital into Thu Thiem.
According to Mr. Nghia, Thu Thiem is considered a new area with many bright spots, full of potential, attractive to both domestic and foreign investors.
Besides its great advantages, Thu Thiem cannot avoid some disadvantages.
On the other hand, this expert believes that policies and administrative procedures for applying for investment licenses in Thu Thiem need to be more and more open to promote and create motivation for investors to feel secure in pouring capital to develop the urban area.
