Discussing with Lao Dong Newspaper about comments on the draft Resolution of the Government on handling difficulties in land use rights auctions, Mr. Le Hoang Chau - Chairman of the Ho Chi Minh City Real Estate Association (HoREA) - said that the draft has some points that have not been fully covered in reality.
The draft stipulates the prohibition of auctioning for individuals who are auction winners in cases where residential land allocation violates payment obligations. However, reality shows that many economic organizations participate in auctions, win, then abandon deposits or pay late. If only individuals are banned, it will not cover all practical cases, because new businesses are the group that participates a lot and has a big impact on the market.
Mr. Le Hoang Chau said that it is necessary to amend and supplement the ban to apply to all economic organizations, not just individuals. This ban also needs to be applied to all cases of land allocation and lease, not just residential land. The violations prohibited include both abandoning the deposit and violating payment obligations.
Because small, unprestigious enterprises may not hesitate to be banned, because they can establish new enterprises to continue participating in the auction. On the contrary, for large enterprises that already have brand reputation, they will be very afraid of being banned from participating in auctions. This is the only measure with weight, thereby limiting the situation of auction manipulation.
Another issue recommended by HoREA is that according to the draft Resolution, the auction winner who violates payment obligations and ends up having the result canceled will not receive the deposit back and must compensate for damages. These compensations include auction organization costs, property auction service prices and other related costs.
However, according to Mr. Le Hoang Chau, these damages are worth too little money. In fact, the cost of organizing auctions and auction service prices is often insignificant, because public auction service centers implement the prescribed fee framework. This is not enough to prevent subjects from participating with the intention of making a profit.
Therefore, HoREA recommends adding a stronger measure, that violators are also subject to administrative sanctions in the field of judicial assistance according to Government regulations. The Association believes that it is necessary to add this regulation to the Law on Handling of Administrative Violations, specifically Decree 82/2020. At the same time, economic organizations are prohibited from participating in auctions.
HoREA also supports the proposal to increase the deposit to a minimum of 20% and a maximum of 50% of the starting price, instead of the current 10-20%, to screen investors with financial capacity and prevent participants from just pushing up prices and then withdrawing.
HCMC to auction a series of land lots, expected to collect more than VND23,000 billion
The Department of Agriculture and Environment of Ho Chi Minh City said it is urgently prioritizing the completion of procedures to organize an auction for 3 plots of land in the Thu Thiem New Urban Area (1.2, 1.3, 3.5). The starting price of these plots of land is expected to be over VND5,000 billion, based on the city's land price list.
Of which, Lot 1.2 has an area of nearly 7,900 m2 and Lot 1.3 is over 5,000 m2 wide, both planned to become multi-functional residential areas. Meanwhile, lot 3.5 with an area of over 6,400 m2 will become a mixed-use apartment complex combined with commercial services.
In addition, Ho Chi Minh City also prioritizes completing procedures to prepare for auction of 3,790 apartments at lots R1, R2, R3, R4, R5 in Binh Khanh Resettlement Area (An Khanh Ward) with an area of 38.4 hectares. In addition, the city is speeding up the auction of 7 other land plots expected in the last quarter of the year with a total amount of about VND 23,192 billion.
