At around 5:00 p.m. on November 30, the auction of 22 plots of land in Do Dong Commune, Thanh Oai District (Hanoi) ended. The plots of land put up for auction had the smallest area of over 85 square meters and the largest of over 135 square meters. The starting price for these plots was from 5.3 million VND/m2, corresponding to a deposit of 90.89 - 143.84 million VND/plot.
The auction is conducted in a direct secret ballot with multiple rounds; at least 6 rounds are required; the minimum bid is 5 million VND/m2. Thus, participants must pay a minimum of 35.3 million VND/m2 to be able to own the land.
Mr. Nguyen Trong Khien - Vice Chairman of Thanh Oai District People's Committee - said that in the 8th round, the highest price was about 70 million VND/m2, but because customers all gave up, the auctioned land lots were all unsuccessful.
Thanh Oai District has organized many rounds of auctions under the direction of Hanoi People's Committee in 3 sessions, but people are still not familiar with the new method so they do not participate.
"Most of the people participating in multi-round auctions are from real estate offices. After only a few auctions are held, these people will know each other and connect with each other. Organizing multi-round auctions is only suitable for businesses doing projects," said Mr. Khien.
According to the Vice Chairman of Thanh Oai District People's Committee, the unsuccessful auction of 22 land lots this time will affect the district's budget revenue.
Since August, auctions in Hanoi have received much attention when recording exceptionally high winning prices. For example, at the auction on November 29 in Soc Son district, 3 plots of land were bid up to over 30 billion VND/m2. More than 20 other plots of land were also pushed up to prices ranging from over 98 million VND/m2 to over 101 million VND/m2. A leader of the People's Committee of Soc Son district said that the unreasonably high prices were due to a group of customers "sabotaging" the auction. The People's Committee of Soc Son district has assigned the Soc Son district police to investigate and clarify the case.
Previously, on November 23, Thanh Oai district organized an auction of 23 land lots in the Man Ca, Man Cong, Ma Man Trong areas, in Van Quan village, Do Dong commune. Accordingly, the lot with the highest winning bid was 75.3 million VND/m2 (code number 152, area 114.7m2) - equivalent to more than 8.6 billion VND/lot, more than 14 times the starting price. The lot with the lowest winning bid was 55.3 million VND/m2, more than 10 times the starting price.
This auction recorded 10/23 successful bids. The remaining 13 bids were eliminated due to violations of auction rules.
