A series of strategically located land plots in central Hue City are being offered for auction for commercial and hospitality developments, though many have yet to attract significant investor interest.
Properties on Le Loi Street in Hue City will be auctioned for the construction of a luxury hotel (Photo: Vi Thao).
Truong Phuoc Tuan, Director of the Hue Land Development Centre, said the city has announced auctions for the land-use rights of nine plots at 22-24 and 26-30A Le Loi Street, 4 Hoang Hoa Tham Street, 17 Truong Dinh Street and 3 Pham Hong Thai Street in Thuan Hoa Ward.
Covering a combined area of more than 11,000 square metres, the sites are earmarked for the development of luxury hotel projects.
The plots are located along the Huong River and previously served as government office premises. They benefit from established infrastructure and occupy a prime position between Truong Tien Bridge and Phu Xuan Bridge.
According to Tuan, Hue plans to auction 50-year land-use leases for the sites, with a starting price of nearly VND 517 billion (USD 19.8 million). So far, three investors have submitted applications. The auction is scheduled for September 26.
The city has also relaunched auctions for several other centrally located sites, including plots at 28 Le Quy Don Street, 8-10 Phan Boi Chau Street and 19 Nguyen Hue Street, intended for mixed-use commercial, hospitality and office developments.
Most of these properties have already undergone one or two auction rounds without attracting bidders.
Earlier this year, the Hue People's Committee assigned the Land Development Centre to auction 16 projects and land parcels covering more than 185,000 square metres. The city expects to generate more than VND 2.43 trillion (USD 93.1 million) from the programme.
However, Tuan acknowledged that auctions involving one-off land lease payments have faced considerable challenges, as investors remain cautious and conduct extensive financial assessments before committing capital.
One example is the Truong Da eco-tourism project, which covers nearly seven hectares near the Tomb of Emperor Tu Duc in Thuy Xuan Ward. Despite being offered for auction for a third time, the project has yet to attract any bidders.
A plot set to be auctioned for lease lies at the junction of Nguyen Hue Street and Phan Boi Chau Street in Hue City (Photo: Cao Tien).
Tran Cong Thich Vuong, Deputy Director of the Hue Department of Finance, said local authorities are seeking solutions to address obstacles and improve the investment climate for commercial and service-sector projects in prime locations.
At a recent conference titled Hue-From Imperial Heritage Capital to a New Investment Destination, experts noted that Hue has significant potential to develop a higher-value real estate market.
They highlighted the city's strengths in cultural heritage, tourism, landscape and quality of life, while noting that demand for housing, commercial space and services still has substantial room for growth.
To fully realise this potential, experts said Hue should align development with urban planning and market demand, while attracting capable investors able to deliver sustainable, long-term real estate projects.