At the end of the auction of 20 plots of land in Hoai Duc district (Hanoi) on November 4, 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.
Talking to Lao Dong reporter, Mr. Pham Duc Vien (Son La) said that compared to the auction on August 19, the organization of the auction on November 4 was more scientific and methodical. However, the winning price level in this auction was still too high.
“The winning price was beyond my ability to pay, so I decided to stop the auction,” said Mr. Vien.
Ms. T (Phu Tho) said that her group participated in the auction of all 20 plots of land but did not win any. She commented that the winning price was higher than the area.
According to the historical price tool of the Batdongsan.com technology platform, the common selling price of land in Tien Yen commune, Hoai Duc district, Hanoi in the third quarter of 2024 is 62 million VND/m2. Over the past year, land prices here have increased by 87.9%.
The selling price in the communes adjacent to Tien Yen commune ranges from 38 million to 90 million VND/m2 in the third quarter of 2024. Accordingly, the auctioned land price in the last session was 1-2 times higher than the common price level.
Mr. Nguyen Van Chien (Ung Hoa, Hanoi) said that currently, the starting price is still low. Accordingly, the starting price and deposit should be increased, thus limiting land speculation.
Speaking to Lao Dong, Associate Professor Dr. Dinh Trong Thinh - former Head of the International Finance Department, Academy of Finance - commented that the fact that land prices are pushed up higher than the actual price has many potential consequences. This makes it difficult for people to access housing. At the same time, businesses and the State also face many difficulties in land compensation because prices are pushed up higher than previous prices.
Associate Professor Dr. Dinh Trong Thinh proposed a number of solutions to limit speculation such as determining starting prices based on market prices, limiting project transfers within 5 years and requiring investors to build houses within 2-3 years.
20 plots of land (LK01 and LK02) were put up for auction today under the Technical Infrastructure Project for Auctioning Land Use Rights in Tien Yen Commune - Long Khuc Field, Hoai Duc District, Hanoi City. The plots of land put up for auction have an area of 89 - 145 m2/plot with a starting price of 7.3 million VND/m2. The deposit for each plot of land is equal to 20% of the value of the auctioned plot of land according to the approved starting price, equivalent to 130.8 million to nearly 212.6 million VND.
The auction is conducted by direct voting in at least 6 rounds using the ascending price method. The common step price for all plots of land is 6 million VND/m2.
