Auctions lasting until night, sky-high winning bids, low starting prices, hundreds of millions of dong in price difference right after the auction... are the current situations happening in many land auctions in Hanoi recently.
Previously, on November 4, the auction of 20 plots of land in Hoai Duc district (Hanoi) ended. The lot with the highest winning bid was 103.3 million VND/m2, 14.1 times higher than the starting price, equivalent to a total value of about 15 billion VND. The lowest lot had a price of 85.3 million VND/m2, 11.6 times higher than the starting price.
At the auction in Ha Dong district in October, after 14 rounds, the auction of 27 plots of land in Ha Dong district ended at 11pm on October 19. The highest winning lot was in Dong Danh - Dong Coc area (Phu Luong ward), the winning price was over 262 million VND/m2, nearly 8.2 times higher than the starting price. The lowest winning lot had a price of nearly 132.8 million VND/m2. This price is much higher than the average land price in inner-city districts of Hanoi such as Ba Dinh, Hai Ba Trung...
Recently, Thanh Oai has also been one of the districts on the outskirts of Hanoi that is hot on land auctions. In early August, this district organized an auction of 68 land lots, the winning price of these lots was 63 - 80 million VND/m2, even the highest lot was up to 100 million VND/m2. This price is 5-6 times higher than the starting price.
However, about 80% of the auction winners here have abandoned their deposits. Of these, all the plots with winning prices ranging from 80 million VND to over 100 million VND/m2 have not paid.
Ms. Pham Thi Mien - Deputy Head of Market Research and Investment Promotion and Consulting Department of Vietnam Real Estate Brokers Association - commented that in the third quarter of 2024, the land auction story is "hotter" than ever with a record high winning price, equal to project land with well-invested infrastructure.
Ms. Pham Thi Mien said that when the new law tightens the subdivision and sale of land, land products are gradually becoming scarce. Therefore, it is predicted that in the coming time, auctioned land will continue to receive the attention of the people due to legal guarantees and low starting prices.
Accordingly, the possibility of new price records continuing to be set in the upcoming auctions is very high and will gradually become "everyday". The reason is because speculative psychology still exists and expectations of real estate price increases continue to be maintained.
Professor Hoang Van Cuong - former Vice President of the National Economics University, member of the National Assembly's Finance and Budget Committee - said that it is necessary to add a regulation requiring auction participants to prove their financial capacity to purchase the property. In addition, buyers must commit to being punished if they cancel their deposit. Thanks to that, the land auction will eliminate speculation, people who participate to buy and sell, especially those who pay high prices and then cancel their deposits.
The former Vice President of the National Economics University also suggested that the State management agency check the price formation factors when there are unusual fluctuations. This helps detect abnormalities in selling prices, protect consumers and is the basis for collecting taxes to regulate the increased income due to high prices.
It is expected that on November 11, Hoai Duc district will continue to auction 32 plots of land (LK05 and LK06) also in the Long Khuc field area, Tien Yen commune. Starting price is 7.3 million VND/m2.
For Thanh Oai district, on November 16, 25 plots of land in Van Quan village (Do Dong commune) will be auctioned. Starting price is 5.3 million VND/m2.
