On September 27, speaking with a reporter from Lao Dong Newspaper, Ms. Truong Thi Thanh Huyen - Head of the Division of Natural Resources and Environment of Nghi Loc district said that the auction unit had announced the results of the auction of 114 land lots in Nghi Phong commune with more than 1,600 registration files.
According to information recorded at the announcement of the land auction results in Nghi Phong commune held on the afternoon of September 25, the customer who paid the highest price for the land lot in the auction was Mr. L.T.C, registered in Thanh Chuong district (Nghe An) with the amount of 3.7 billion VND. This land lot has an area of 215.9m2, the starting price is 10.4 million VND/m2, equivalent to nearly 2.3 billion VND.
Customer N.T.K, residing in Nghi Phu commune, Vinh city, won 15 plots of land, the prices of the plots range from 2.2 to more than 2.8 billion VND.
Of the lots that won the auction this time, only 2 lots had the lowest price of over 1.8 billion VND. The remaining lots were priced from 2 to over 3 billion VND, 30-40% higher than the starting price.
After the auction ended, there was public opinion that there was a phenomenon of land prices being inflated too high, leading to disruption of the real estate market and making it impossible for people in need of residential land to access.
“A plot of land with an area of only about 200 square meters in the countryside was offered a price of up to 3.7 billion VND, an unprecedented price here. With this price, in the near future, the land price level in Nghi Phong will increase very high, ordinary people will not be able to buy a piece of land for their children to build a house” - Mr. Nguyen Van Hai - a resident of Nghi Phong commune shared.
Recently, the People's Committee of Nghe An province also issued a document assigning the People's Committees of districts, cities and towns to inspect and control the activities of buying and reselling real estate that has been transferred many times, especially land in technical infrastructure areas with subdivided lots with abnormal price increases causing disturbances in the "virtual fever" of the market; inspect, check, and take measures to correct acts of price inflation, price manipulation, speculation, and handle violations of land laws and related laws.
However, sharing about this issue with Lao Dong Newspaper reporter, lawyer Tran Hau Dinh (Hanoi Bar Association) said that there is no basis to determine the act of "inflating" land prices: "According to the Law on Property Auction, the person who bids the highest price is determined to win the auction. Anyone who abandons the deposit will lose the deposit. There is no regulation on the ceiling price in property auctions. Therefore, the authorities have no basis to determine and handle the act of "inflating prices".
Lawyer Tran Hau Dinh also added that the real estate market operates according to the law of supply and demand, therefore, the State cannot directly intervene in the market but can only regulate it through tools such as tax policy.
"To address the housing and land needs of policy beneficiaries and low- and middle-income earners, the State has had specific policies such as allocating land without auction and developing social housing," said lawyer Tran Hau Dinh.
