Research from Lao Dong reporter, recently, land auctions in suburban districts of Hanoi such as Thanh Oai and Hoai Duc are attracting people's attention with a large number of registration documents and winning prices. Auctions skyrocketed, dozens of times higher than the starting price.
Referring to this content, the Vietnam Real Estate Brokers Association (Vars) said that the developments and results of land auctions in the suburbs of Hanoi are both abnormal and normal.
In fact, in the first 6 months of 2024, when the land market in general is still quiet, some land auctions in some localities still attract hundreds to thousands of participants, mainly investors. private. Winning auction results in some places also recorded winning prices 10 times higher than the starting price.
Vars emphasized that in the coming time, cash flow will likely "pour" into auctioned land, in urban areas and residential areas when localities organize many auctions to boost State budget revenue. water. Because this is a clean type of land, not involved in litigation disputes, has red books, infrastructure, ready to build houses for business, rent, and earn monthly cash flow.
This segment is attractive in the context of recent years when Hanoi has almost no new projects, and the land supply is forecast to become increasingly scarce when the 2023 Real Estate Business Law prohibits subdivision. selling plots in 105 cities and towns, forcing businesses to build houses on land to sell in these areas.
Vars further explained that the price increased dozens of times, which sounds very unusual, but in fact it is because the starting price of auctioned land in the suburban districts of Hanoi is still low. This high winning price reflects the reality of the gap between supply and demand, when the number of applications is many times higher than the number of land lots in the auction.
However, the land price is up to more than 100 million VND/m2 in a location with unremarkable infrastructure and utilities, in a suburban locality that has the potential to increase prices at a normal level but is on par with Land prices in urban areas and densely populated areas are very abnormal, far exceeding the actual value, the result of unhealthy purposes, creating virtual land fever.
Vars emphasized that it cannot be ruled out that these individuals take advantage of auction deposits to inflate the prices of related land areas. Even despite the risks, legalize the price by paying in full according to the winning bid price to use this price as a basis to stimulate land prices in suburban districts, causing land prices to escalate in many places to create a fever. virtual...
