Vietnam Auction Joint Stock Company has just announced the auction of 58 land plots in Man Ca, Man Cong, Ma Man areas in Van Quan village, Do Dong commune, Thanh Oai district. These are lots with symbols from 140 to 197, belonging to the ONT-7 and ONT-8 series.
The area of the plots ranges from 76.5 - 189.73m2, the starting price for each plot is 5.3 million VND/m2. The deposit for each plot is 81 - 201 million VND. The auction will be conducted in the form of direct secret ballot in one round.
Auction each plot of land by direct secret ballot in 1 round (1 time) with ascending price method. The prescribed price step is 100,000 VND/m2.
Time for issuing, selling documents and receiving documents to participate in the auction is from September 18 to October 2, 2024. According to the plan, the auction will be held at 8:30 a.m. on October 5, 2024, at the expected location at Thanh Oai District Gymnasium.
Previously, information from the Thanh Oai District Land Fund Development Center said that as of September 16, only 13 plots of land in the auction of 68 plots of land in Ngo Ba area, Than village, Thanh Cao commune, Thanh Oai district (Hanoi) on August 10 had fulfilled their financial obligations.
The remaining 55 lots, including all lots with winning prices ranging from 80 million VND to over 100 million VND/m2, did not pay. Thus, the 55 lots that did not pay in full are understood to have forfeited their deposits.
Lawyer Pham Thanh Tuan - real estate legal expert - commented that the land auctions that have just taken place in suburban areas of Hanoi such as Thanh Oai and Hoai Duc have had fluctuations mainly due to the transition period between the 2013 Land Law and the new 2024 Land Law, which will take effect from August 1, 2024.
This situation will be limited when the legal regulations on land, especially the Law on Property Auction, take effect from January 1, 2025, which includes very strong sanctions (even criminal prosecution for some acts of collusion and collusion to distort auction results) or banning auction participants from 6 months to 5 years (for land auctions to implement projects or exploit resources) if they auction investment projects and forfeit their deposits.
However, from now until 2025, when the tightening regulations have not yet taken effect, it is predicted that the situation of land speculation pushing up land prices through auctions will continue to recur.
Mr. Le Dinh Chung - General Director of SGO Homes Real Estate Consulting and Development Joint Stock Company (Hanoi) - said that to prevent speculative behavior and "price inflation", the State needs to redefine the appropriate land price frame, currently the auction land price frame is lower than the market price.
In addition, the deposit level should be raised to a higher level, possibly 10%-20% of the value of the land being auctioned to minimize investors speculating and inflating prices. In particular, for individuals who win the land price but do not deposit, their credit score should be lowered or they should not be allowed to participate in other land auctions.
