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. The plots of land have an area of 97 - 172m2; the deposit for each plot ranges from 142 - 251 million VND. The starting price is 7.3 million VND/m2.
Thanh Oai district, one of the areas with the most active land auctions last August, is also preparing to put plots of land up for auction. On November 16, Thanh Oai district will auction 25 plots of land in Van Quan village (Do Dong commune).
The land plots range in size from nearly 84m2 to over 143m2. Starting price is 5.3 million VND/m2, equivalent to a deposit of 88-151 million VND/plot.
The auction will have to go through at least 6 mandatory rounds, with a price step of 5 million VND per square meter. Thus, participants must spend at least 30.3 million VND per square meter to win the auction in this session.
Previously, on November 4, the auction of 20 plots of land in Hoai Duc district (Hanoi) recorded only over 100 customers participating, equal to 1/5 compared to the previous auction (August 19). In addition, 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.
Thus, compared to the auction of 19 plots of land on August 19, the highest winning price was over 133 million VND/m2. The auction results this time have "cooled down" in both price and number of participants. However, according to experts, this price is still higher than the common price level.
Dr. Nguyen Van Dinh - Vice President of Vietnam Real Estate Association said that with the current imbalance between supply and demand and the heat of the Hanoi real estate market, the possibility of new price records continuing to be set in the upcoming auctions is very high and will gradually become "a daily occurrence in the district". Because the speculative mentality still exists and the expectation of increasing real estate prices continues to be maintained.
To ensure that the auction process is fair and transparent, minimizing speculation and price inflation, State management agencies need to continue to closely monitor each move of the auctions to take timely corrective measures when detecting signs of "instability".
At the same time, it is necessary to consider early implementation of adjustments to mechanisms, policies, and stricter regulations related to land auction activities to promptly adjust this activity in the right direction. In particular, the penalty for forfeiting deposits needs to be considered higher. Thus, increasing the consideration between gains and losses of individuals participating in auctions, somewhat limiting the "speculative trend" through auction activities.
Dr. Nguyen Van Dinh said that the State also needs to take stronger measures against cases where auction winners are sold in a short period of time.
