On August 10, at the hall of Thanh Oai District People's Committee, an auction of land use rights for 68 plots of land in Ngo Ba area, Thanh Than village, Thanh Cao commune was held.
There are 1,600 people participating in this auction with an expected number of 7,000 sets of documents. The area of each plot of land ranges from 60-85m2, the starting price is from 8.6 - 12.5 million VND/m2.
At the end of the auction, the corner lot had the highest winning price of nearly 101 million VND/m2, the regular lot had the winning price of 63 - 80 million VND/m2. Thus, compared to the starting price, the regular lot price was 6 - 7 times higher, the corner lot price was 8 times higher.
According to the Thanh Oai District Land Fund Development Center, Hanoi, the deadline for payment of the auction of 68 land plots in Ngo Ba area, Thanh Than village, Thanh Cao commune has expired, but only 13 plots have paid in full. The plots with full payment have low winning prices. Meanwhile, the plot with winning price of more than 100 million VND/m2 has not yet paid and forfeited the deposit.
According to Mr. Nguyen Cong Quang - Director of Thanh Oai District Land Fund Development Center, the deadline for submitting the auction fee has expired, but according to regulations, the auction results must be canceled after 120 days, so the district still does not have a plan and deadline for re-auction.
Mr. Do Van Thach - CEO of Dova Land - said that according to regulations, the deposit when participating in the auction is 20% of the land value calculated according to the starting price. Meanwhile, the starting price is very low (from 8.6 million VND to 12.5 million VND/m2), meaning that participants only need to deposit about 103 - 212 million VND/lot, if the transfer is at the lowest difference of 103 million VND, the winner "still breaks even, only loses the money to buy the documents", if the transfer cannot be made, they will accept to forfeit the deposit.
Associate Professor, Dr. Dinh Trong Thinh (former Head of the International Finance Department - Academy of Finance) said that paying high prices in auctions to "inflate" real estate prices has not been rare in recent times. There have been many cases where auction participants (usually groups of speculators) intentionally paid high prices to create a new price level and then "skimmed the deposit" or "abandoned the deposit".
