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Land prices adjusted again after 10 years, investors warned of loss of confidence!

10 years ago, nearly 90 hectares of residential land under the Nhon Duc - Phuoc Kien New Urban Area project was valued at more than 3,200 billion VND. At the request of the State Audit Agency, Ho Chi Minh City must re-evaluate the land price of this project but it has not been completed for more than 3 years.

(A corner of ZeitGeist City Nha Be project. Photo: Tran Chung)


More than 3 years have not yet re-determined the land price The Department of Natural Resources and Environment (DoNRE) of Ho Chi Minh City has just informed about the process of re-evaluating land prices at the Nhon Duc - Phuoc Kien New Urban Area project, Nha Be district by GS Nha Be Development Company Limited, belongs to GS E&C Group (Korea) as the investor.


After many name changes, the Nhon Duc - Phuoc Kien New Urban Area project now has the commercial name ZeitGeist City Nha Be. This project has a total area of ​​350 hectares, 770 villas and more than 16,000 apartments, and is the second largest urban area in the South Saigon area after Phu My Hung.


Starting construction at the end of 2019, up to now many products in the project's subdivisions have been completed and handed over to customers. However, over the past ten years, the land valuation of this project has not been completed.



According to the Department of Natural Resources and Environment, in December 2014, Ho Chi Minh City People's Committee decided to approve the value of land use rights of nearly 90 hectares of land of the ZeitGeist City Nha Be project of VND 3,214 billion. This is the project's residential land area and the price is calculated according to the market price as of December 2013.


By April 2017, in the audit report on the management and use of land for urban area projects in Ho Chi Minh City in the period 2013 - 2016, the State Audit recommended that the People's Committee of Ho Chi Minh City redefine residential land prices at ZeitGeist City Nha Be project.


On that basis, in March 2020, Ho Chi Minh City People's Committee directed the Department of Natural Resources and Environment to preside and coordinate with relevant units to advise the City on the land price of this project.


Ho Chi Minh City Department of Natural Resources and Environment said that this agency is currently hiring a consulting unit to re-evaluate land prices at the ZeitGeist City Nha Be project according to audit conclusions and direction of Ho Chi Minh City People's Committee.


"On the morning of September 21, 2023, the Department of Natural Resources and Environment had a working session with GS E&C Group to inform about contents related to the project's land price revaluation," said, the leader of the Department of Natural Resources and Environment.


Thus, after more than 3 years of implementing procedures, up to now, Ho Chi Minh City People's Committee has not yet redefined the value of the land use rights of nearly 90 hectares of residential land at the ZeitGeist City Nha Be project. Meanwhile, the investor has carried out transactions and handed over houses to many customers.


Investors worry that FDI enterprises will 'lose confidence'


Previously, at the dialogue conference between Ho Chi Minh City leaders and Korean businesses in mid-August 2023, the re-evaluation of project land prices caused complaints from Korean investors.


Mr. Cho Sung Yol, General Director of GS E&C Group in Vietnam, said that in 2007, the company advanced costs for Ho Chi Minh City People's Committee to carry out compensation and site clearance for the project.


According to the agreement, this advance amount will be deducted from financial obligations regarding land when determined. By 2014, Ho Chi Minh City People's Committee had a document determining the total land financial obligations of the ZeitGeist City Nha Be project. However, currently the city's affiliated agencies are unilaterally re-evaluating the project land price.


A representative of GS E&C Group in Vietnam said that if the People's Committee of Ho Chi Minh City unilaterally re-evaluates land prices and requires businesses to pay the difference, it will negatively affect the stability and trust of local businesses. FDI enterprises, including GS E&C Group.


Therefore, Mr. Cho Sung Yol requested the Ho Chi Minh City People's Committee to soon complete the re-evaluation of land prices and guide investors to complete financial obligations within the land price determined in 2014 so that the project can be implemented. on schedule.


According to the Chairman of Ho Chi Minh City People's Committee, there are many problems in land price appraisal, this is a difficult problem. When the City sets up a project's land price appraisal team, investors will participate in giving comments.


According to the introduction, the Zeitgeist Nha Be project includes 5 development phases. The launch of phase 1 of the project took place in the third quarter of 2022 with an average selling price of about 3,000 USD/m2 (equivalent to about 70 million VND/m2).


On the business website, the project's townhouses are priced from 9.6-10.4 billion VND/unit; Shophouse prices range from 12.8 to 14.8 billion VND/unit; Villa prices range from 11.8 to 27 billion VND/unit depending on the product.


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Sao Khue Investment & Trade Promotion Corporation


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