The Hanoi People's Committee has just issued a new land price list, effective immediately and applicable until December 31, 2025. Notably, compared to the old land price list, the adjusted land price list is 2-6 times higher.
Previously, assessing the impact of the new land price tables, in a recent report on real estate prices sent to the Government Office, the Ministry of Construction said that, according to calculations, land use costs of projects will increase significantly when applying new land prices.
Reality also shows that in recent times, real estate and housing prices in many large cities such as Hanoi and Ho Chi Minh City have recorded an upward trend.
In Hanoi, the land fever can be mentioned as the auction of 68 plots of land in Ngo Ba area, Thanh Than village, Thanh Cao commune, Thanh Oai district on August 10.
This auction caused a surprise when it attracted more than 1,500 participants and more than 4,200 applications. The winning bids ranged from more than 51 million to more than 100 million VND/m2, 6-8 times higher than the starting price.
Then came the auction in Tien Yen commune (Hoai Duc district) with the highest winning price reaching 133.3 million VND/m2, 30 times higher than the starting price. The lowest winning price also reached 91.3 million VND/m2, 12.5 times higher than the starting price.
More shockingly, the auction of 58 plots of land in Quang Tien commune, Soc Son district (Hanoi) took place on November 29, with participants bidding over 30 billion VND/m2, and was later prosecuted for violating regulations on property auction activities.
According to experts, one of the reasons why auctions are constantly "hot" is because the market is improving, real estate prices are increasing, while the starting price for auctioned land is still very low. However, the starting price will change when Hanoi issues a new land price list.
Sharing with Lao Dong reporter, Mr. Nguyen The Diep - Vice President of Hanoi Real Estate Club - said that due to low deposits, some people are willing to participate in auctions and pay high prices with the mentality that at most they will lose their deposits. The purpose of these people is also to create a new price market in neighboring areas.
Therefore, analyzing from a positive perspective, adjusting the land price list is the key to "opening and closing" the land use rights auction.
Sharing the same view, Mr. Nguyen Anh Que - Member of the Executive Committee of the Vietnam Real Estate Association, Chairman of G6 Group - said that the new land price list is very meaningful in establishing starting prices in land auctions, which have been inadequate in recent times in Hanoi.
Accordingly, the new land price list will increase the starting price, the deposit amount will be higher, the number of submitted applications will be lower, thereby filtering out many customers who do not have the financial capacity to buy but only have enough money to deposit or spread out many applications, making the auction process difficult and distorted.
