In 2024, the auction land market on the outskirts of Hanoi became the center of attention with a series of record high winning prices, many areas exceeding 100 million VND/m2. Notably, there was a case of a "team of brokers" colluding to push the auction price up to 30 billion VND/m2, then reneging on the deposit and being handled by the authorities.
However, recently, the attraction of land auctions has cooled down in both interest and selling price. Most recently, at the auction of 26 plots of land in Yen Quan village, Tan Phu commune, Quoc Oai district, the highest winning price was recorded at 76.7 million VND/m2, the lowest was 40.7 million VND/m2. These plots of land ranged in area from 73.2 - 101.5m2, with a starting price of 4.7 million VND/m2, the total area of the plots was up to 2,326.7m2.
Previously, on December 24, the auction of 8 land plots in Chuong My district attracted 15 customers with 40 sets of documents to participate. After 5 rounds, all 8 land plots were successfully traded, in which the land plot coded LK1-1 in Huu Van commune had the highest winning price of 34 million VND/m2, while the lowest price was recorded in Hoang Van Thu commune at 7.7 million VND/m2.
In Phuc Tho district, the auction in November 2024 showed that the highest winning price reached 37.6 million VND/m2, only half of the peak price of 75 million VND/m2 in the auction 2 months ago in the same area.
Talking to Lao Dong, Mr. Tran Manh Toan (real estate broker in Hanoi) said that pushing up the prices of land lots is a trick of many "piloting teams" to "create waves" to sell the land lots they are holding.
However, with the winning price being pushed too high and far exceeding the real value, it will be difficult to liquidate, this may be the main reason why the auction land market is gradually cooling down. Besides, recently the authorities have been tightening land auction activities, so many people will be more cautious.
Mr. Nguyen Van Dinh, Chairman of the Vietnam Real Estate Brokers Association, commented that 2024 witnessed many records in auction land prices, with some auctions recording winning prices of up to hundreds of millions of VND per square meter. This stems from the recovery of the real estate market in general, directly affecting investment psychology and behavior.
In addition, auctioned plots often have low starting prices, along with expectations of increased value due to urban planning and infrastructure expansion, causing many investors to increase speculation. However, due to insufficient penalties, the situation of pushing up winning prices and then abandoning deposits will continue to occur in 2024.
With the developments of auctioned land in 2024, Mr. Dinh predicts that in 2025, investors will be more cautious. However, auctioned land with transparent legal characteristics, located in areas with clear planning will still be a sought-after segment in the coming time.
To control the situation of land auction prices jumping, Mr. Dinh said that it is necessary to hire a valuation consultancy organization and implement a price determination process to make the starting price more appropriate. In addition, it is necessary to consider raising the deposit and deposit penalty, and to issue detailed regulations on behaviors considered to affect auctions, along with specific penalties.
