The auction will include at least 1,054 land plots, formerly reserved for residents who had to resettle because of the new Thu Thiem Urban project in District 2.—Photo dddn

HCM CITY (Biz Hub) – The price of land plots in HCM City, especially in District 2, will likely continue to fall as more land is put up for auction, according to a source from the city's People's Committee.

The auction will include at least 1,054 land plots, formerly reserved for residents who had to resettle because of the new Thu Thiem Urban project in District 2.

The plots are those that were left over after resettlement of residents was concluded, according to a report in the Lao Dong newspaper.

The People's Committee's decision is expected to lower prices on the entire market.

Of the total, 202 land plots that cover 5.7 hectares in the 50-ha resettlement area in the Cat Lai Ward will be sold by the Thu Thiem New Urban Area Investment and Construction Board.

The remaining 852 land plots are in the 30-ha Nam Rach Chiec Resettlement Area in An Phu Ward. They will be auctioned by the District 2 People's Committee.

These two resettlement areas had been built to serve more than 12,000 families whose houses were torn down for the development of the Thu Thiem project.

Market analysts said the sale of more than 1,000 land plots concurrently would influence market prices for land.

In addition, analysts said that because of the sluggish property market, prices would also have to be very soft.

The price of land plots in District 2 has fallen sharply over the last few years.

For example, one square metre was priced at VND90 million in 2008. The same price will now get buyers a little under VND50 square metres in the An Phu-An Khanh Urban Area.

Even so, such prices have not attracted many buyers and land sales remain stagnant in District 2. — VNS