After nearly 2 months of suspension, the auction of 25 land lots in Man Ca, Man Cong, Ma Man Trong areas, Van Quan village, Do Dong commune will take place on the morning of November 16 at Thanh Oai district gymnasium (Hanoi).
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.
According to the announcement in September, Thanh Oai planned to auction these plots of land with a starting price of 5.3 million VND, using a secret ballot in just one round.
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.
Mr. Nguyen Quoc Hiep - Chairman of the Vietnam Association of Construction Contractors - said that it is necessary to strengthen measures to limit the situation of pushing up prices and then abandoning deposits in auctions.
"Currently, the starting price is low, it is necessary to increase this price. For example, in the Thanh Oai area (Hanoi), if the average land price is around 30 - 40 million VND/m2, then the initial starting price of around 20 million VND/m2 would be reasonable. In addition, it is necessary to increase the deposit rate to around 50% and shorten the time to pay the winning bid. This will limit cases of blatant price inflation," said Mr. Hiep.
