Earn hundreds of millions of dong in difference
Recently, in the suburban districts of Hanoi, land auctions have been continuously held. The success rate of the auctions is very high and brings a large source of budget for the locality.
Most recently, the land auction in Phuc Tho district in the three communes of Trach My Loc, Tho Loc and Xuan Dinh attracted nearly 200 people and more than 400 valid applications. The land plots have an area of 97.1 - 162.9m2, with starting prices from 19.8 - 25 million VND/m2.
Most of the auctioned plots of land were priced at over 50 million VND/m2, the lowest winning price among 30 plots of land in Doc Tranh area, Trach My Loc commune was 39.2 million VND/m2.
Immediately after the auction was announced, many investors transferred the land, making hundreds of millions of dong per plot. The buying and selling also took place very actively. The auctioned plots were priced by speculators at a difference of 150 - 500 million dong per square meter.
Mr. Ngoc Duc - a real estate broker in Phuc Tho district - said that in reality, many auction winners were immediately put up for sale at a higher price and some plots of land were sold 2-3 times.
Plots of land with winning prices below 50 million VND/m2 are the most sought after and have a price difference of 150 - 300 million VND.
Many risks, even tax evasion
According to the provisions of the 2024 Land Law, the person who wins the auction for land use rights, fulfills financial obligations and is granted a land use right certificate can transfer the auctioned land use rights to another person.
Therefore, land that wins the auction but has not been granted a land use right certificate cannot be transferred in practice.
Sharing with Lao Dong reporter, lawyer Nguyen Huy An (Hanoi Bar Association) said that the auction winner transferring the property to another person without fulfilling all financial rights and obligations has many risks and can even be tax evasion.
The newly auctioned plots of land were sold at a price different from the amount stated in the auction certificate, from several tens to several hundreds of millions, even billions of dong.
To legalize this transaction, the auction winner, after negotiating and receiving the full difference, will write a power of attorney for the buyer. The buyer will bring that power of attorney to fulfill financial obligations and have their name on the land use rights certificate.
“We can easily detect deposit skimming and tax evasion transactions through power of attorney, comparing information of auction winners and those who fulfill financial obligations. When this behavior is controlled, the situation of land price inflation will be reduced,” emphasized lawyer An.
Mr. Nguyen The Diep - Member of Vietnam Real Estate Association - said that the buying and selling of auctioned land has created a primary and secondary market related to auctioned land. It is necessary to control tax sources from profits from buying and selling auctioned land to avoid revenue loss.
