Unprecedented auction
On December 29, 2024, the Ninh Binh Provincial Property Auction Service Center organized an auction of 136 residential land lots in Dong Oi residential area (in Ninh My commune, Hoa Lu district, now Ninh My ward, Hoa Lu city). This is one of the unprecedented land use rights auctions in rural areas in Ninh Binh because the auction lasted all day and the land price was "inflated" many times higher than the starting price.
Mr. Ninh Duc Phuong (an investor participating in the auction) shared that the auction was held at the Cultural House of Ninh My Commune People's Committee, organized by the Ninh Binh Province Property Auction Service Center (under the Ninh Binh Province Department of Justice).
As someone who has participated in many land use rights auctions in Ninh Binh province, Mr. Phuong commented that this is an unprecedented phenomenon in recent years in rural areas in Ninh Binh because the price of rural land reaching nearly 42 million VND/m2 is too high.
"The initial starting price announced by the Ninh Binh Province Property Auction Service Center was VND16.7 million/m2. However, after 11 rounds of bidding, the auction result reached nearly VND42.7 million/m2. This is considered the highest price in rural areas in Ninh Binh so far," Mr. Phuong shared.
Due to the effect on the city
Regarding the above auction, speaking with Lao Dong Newspaper reporter, Mr. La Khac Khanh - Director of Ninh Binh Province Property Auction Service Center, said that out of the total 136 land lots in Dong Oi residential area just put up for auction, there were nearly 500 customers with 782 qualified applications participating in the auction.
The auction method is ascending price and auction by direct secret ballot at the auction, with no limit on the number of bidding rounds. Auction participants vote to bid according to the type of land plot and the starting price they registered to bid.
"After 11 rounds of bidding, 136 tickets with the highest bids were identified. The Center applied a slide show to publicly display the bids of the highest bidders for all customers in the hall to follow. The total starting price rounded up for the 136 plots was 369 billion VND, the total value after the successful auction was 687 billion VND, exceeding the starting price of 318 billion VND" - Mr. Khanh said.
According to Mr. Khanh, this is the highest price ever for land use rights in rural areas in Ninh Binh. The reason for the high land prices in Dong Oi area is partly due to the effect of Ninh My commune being upgraded to a ward after Hoa Lu district merged with Ninh Binh city to form Hoa Lu city (since January 1, 2025, just 3 days after the auction took place - PV).
Besides, the location of the auctioned land is also very convenient, the technical infrastructure is invested and built synchronously, so it has attracted many people inside and outside the province to participate in the auction.
"We determined the starting price to be appropriate for the location of the land. We estimated that the auction price would only be around VND30 million/m2. However, the auction results surprised many people. Among the 136 lots put up for auction, there were 115 lots of houses, the starting price was VND16.7 million/m2 but the auction result was up to nearly VND47 million/m2, an increase of more than 178%" - Mr. Khanh said.
