Most recently, all 22 plots of land in Do Dong commune, Thanh Oai district (Hanoi) in the auction on November 30 could not find owners.
Mr. Nguyen Trong Khien - Vice Chairman of Thanh Oai District People's Committee - said that in the 8th round, the highest price was about 70 million VND/m2, but because customers all gave up, the auctioned land lots were all unsuccessful.
Most of the people participating in the multi-round auction are from real estate offices. After only a few auctions are held, these people will know each other and connect with each other. The failure of the auction of 22 plots this time will affect the district's budget revenue.
In Soc Son district, the auction on November 29 caused a stir when 3 plots of land were bid up to over 30 billion VND/m2. More than 20 other plots of land were also pushed up to prices ranging from over 98 million VND/m2 to over 101 million VND/m2. The leader of the People's Committee of Soc Son district said that the unreasonably high prices were due to a group of customers "sabotaging" the auction. The People's Committee of Soc Son district has assigned the Soc Son district police to investigate and clarify the case.
Since August, auctions in Hanoi have received much attention when recording exceptionally high winning prices such as in Hoai Duc district (Hanoi) or Thanh Oai district (Hanoi), winning prices both exceeded 100 million VND/m2. However, 55 auction winners in Thanh Oai district waived their deposits when the payment deadline came.
Lawyer Dang Van Cuong commented that recently, land use rights auctions have been unusual, with the phenomenon of paying high prices and then abandoning deposits occurring in many localities, causing public outrage and causing many auctions to fail to take place.
Notably, those who paid high prices immediately sold them to make a large profit. What is worrying is that the plots of land kept changing hands, inflated in price to make a profit, but were not put into use, leading to a waste of resources and affecting the investment environment.
Therefore, controlling land use rights auction activities is necessary, so that land prices reflect the market price. In addition, people with real needs have the opportunity to access and put land into use to develop the socio-economy, ensure social security and eliminate cases of speculation, taking advantage of land auction activities to gain illegal profits.
Associate Professor, Dr. Dinh Trong Thinh said that the act of taking advantage of auctions to push up and inflate prices is considered an economic crime. State agencies need to investigate and strictly handle this act.
Regarding the situation of unusually high land prices after a number of recent land auctions, at a recent land forum, Minister of Natural Resources and Environment Do Duc Duy said that the Ministry has proposed that the Government direct localities to apply synchronous solutions to overcome and rectify land auction activities, and strictly handle those who take advantage of land auctions to inflate prices for personal gain.
