Yen Lang Commune People's Committee has just successfully organized an auction of residential land use rights for 33 land plots in Yen Lang commune, Hanoi City (formerly Me Linh district). As a result, all 33 land plots were successfully auctioned. The winning price ranges from 34.5 to 57.6 million VND/m2, about 7 times higher than the starting price.
Previously, in 2024, the Me Linh district (old) was once considered a land auction hotspot, when many sessions recorded winning prices of nearly 100 million VND/m2.
However, according to recent actual records, the winning land auction price in the Me Linh (old) area has shown signs of cooling down compared to the peak period of 2024.
Talking to Lao Dong Newspaper, Ms. Pham Thi Mien - Deputy Director of the Vietnam Real Estate Market Evaluation Research Institute, said that recent land auctions show signs of slowing down because FOMO sentiment is no longer as strongly dominated as in the previous period, after a period of "hot" increase, the liquidity of the Hanoi real estate market in general and auctioned land in particular tends to stabilize again.
Previously, many auctioned land plots were pushed up very high, far exceeding the general level of the region, based on the expectation of "fast surfing", transferring hands in a short time to enjoy the difference. However, in the current context, when the general market stabilizes, the previous high winning auction prices must be adjusted to find liquidity.
At the same time, the adjusted interest rate increase also makes capital costs higher, forcing investors to be more cautious in participating in auctions, calculating more carefully the efficiency of cash flow and holding time. In fact, auction sessions are still relatively well absorbed, thanks to transparent legal characteristics, clear locations, in the context of increasingly scarce land supply.
The winning price level is being adjusted to approach the real value, causing investors to switch from "accepting high prices" to "accepting reasonable prices". However, the market is still supported by many expected factors: the goal of high economic growth in the medium and long term, along with strong investment in transportation and urban infrastructure.
Ms. Pham Thi Mien said that to transparentize the market and limit the risk of "virtual fever" returning, it is necessary to synchronously implement many solutions. First of all, it is necessary to strongly increase sanctions for violations in land auctions, ensuring substantive deterrence. Cases of intentionally manipulating prices, colluding, abandoning deposits or having acts that distort auction results must be strictly handled.
Sanctions need to be classified according to the level of violation, including prohibition from participating in auctions for a period of 2-10 years, even permanent prohibition for acts that intentionally cause market disruption, causing loss of investor and society's trust.
In addition, it is necessary to adjust the deposit mechanism in a more substantive direction. The deposit amount should be raised to a reasonable level. This helps screen investors who lack financial capacity.
Along with that, it is necessary to tighten the conditions for participating in the auction. Participation documents need to require auction participants to clearly prove financial capacity, payment capacity and land use purpose to limit speculation" - Ms. Mien shared.
