After nearly 20 hours of auction, the auction of land use rights for 54 plots of land in Son Trung village, Yen Son commune, Quoc Oai district (Hanoi) on October 13 attracted 296 customers, with more than 1,000 participating applications.
The plots of land put up for auction range in area from 92.5 to 113.9 square meters. The total area of the 54 plots of land put up for auction is 5,160.6 square meters. The starting price of the first round was VND12.48 million/square meter. The auction ended at 1:30 a.m. on October 14, with the highest winning price being VND54,480,000/square meter, about 30% higher than the market price.
This is considered a reasonable price for a beautiful plot of land. The plot with the lowest price is 44,480,000 VND/m2, approaching the market price. This result also shows that there is no longer a situation of "paying high prices, creating virtual fever" through land auctions.
Previously, on October 11, in the auction of 27 lots in Phuc Tho district, the land lot with the highest winning price was 25.8 million VND/m2, only 30% higher than the starting price, not many times higher than in previous auctions.
Ms. Pham Thi Mien - Deputy Head of Market Research and Investment Consulting and Promotion Department of Vietnam Real Estate Brokers Association commented that the results of recent auctions showed that speculation and price inflation have been limited, the winning bids are no longer "shocking" and are approaching the market price.
Ms. Pham Thi Mien added 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.
Real estate legal expert Nguyen Van Dinh commented that in the coming time, it is necessary to strengthen measures to prevent speculation in auctions, such as limiting land transfer transactions after winning the auction within a period of time, for example, 5 years. Or handle it with tax policy, if the auction winner transfers land within a short period of time, such as within 12 months, he will be subject to high tax rates.
Dr. Tran Xuan Luong - Deputy Director of the Vietnam Institute for Real Estate Market Research and Evaluation said that in order to prevent speculation and land price inflation through auctions, additional measures are needed, such as establishing an independent Land Auction Supervision Council, and at the same time applying and establishing additional policies on ceiling and floor prices. In case the floor and ceiling prices exceed the threshold, the auction will be canceled.
"There needs to be additional administrative regulations such as publicizing the purpose of purchase. If it is for living, it is necessary to provide declaration documents in the auction file such as proof of work, house construction plan, living plan, proof of source of funds to prevent money laundering. State management agencies need to issue more appropriate policies and decrees, closer to reality, only then can the real estate market stabilize" - Mr. Luong said.
Recently, the Hanoi People's Committee has also requested the City Police to consider professional measures to promptly detect violations of land auctions, and guide the People's Committees of districts, towns and cities to take measures to prevent violations of auction regulations from continuing to participate in auctions.
In addition, the police force needs to propose solutions to prevent and limit continued participation in auctions for those who have participated in auctions, paid unusually high prices to win auctions but did not pay the auction winning money as prescribed.
