27 plots of land in Ha Dong district are about to be "put up for auction", will the all-night bargaining repeat itself?

National Joint Stock Auction Company No. 5 has just announced the auction of 27 residential land plots in the following locations: Ha Khau copper area, Dong Danh - Dong Coc area, Dong Bo - Dong Chuc - Cua Cau - Dong Men area (area B, Phu Luong ward); Sau Chua area (symbol X8, Yen Nghia ward); Duoc area (symbol X7, Duong Noi ward), Ha Dong district.

The auctioned plots range in size from 48-72 square meters, with starting prices ranging from nearly VND22.8-32.2 million/square meter. The deposit for each plot ranges from over VND200 million to over VND400 million.

Previously, the auction of these 27 plots of land was scheduled to be held on September 7, but was suspended at the request of the Ha Dong District Construction Investment Project Management Board about a month ago.

According to the latest plan, the auction will still be conducted in the form of direct voting in multiple rounds and through a minimum of 5-11 mandatory rounds.

Specifically: 17 plots of land in Ha Khau area must be auctioned through at least 5 mandatory rounds. 3 plots of land in Dong Bo - Dong Chuc - Cua Cau - Dong Men area, Sau Chua area must be auctioned through at least 6 mandatory rounds. The minimum number of mandatory rounds at 6 plots in Duoc area is 7 rounds.

Notably, a plot of land in Dong Danh - Dong Coc area, area 57.5m2 with starting price of 32.2 million VND/m2 will be auctioned through at least 11 mandatory rounds.

The starting price from the second auction round onwards is determined to be the highest valid bid in the previous auction round. In case the highest valid bid in the previous auction round is equal to the starting price of the auction round, the starting price of the next auction round is equal to the starting price of the previous auction round plus one price step.

The general price step applied to land plots and in auction rounds is 10 million VND/m2.

The mandatory multi-round auction format, similar to the land auction in Hoai Duc, lasted for nearly 20 hours, from the morning of August 19 to the early morning of August 20, after 9 rounds (with 6 mandatory rounds) to end.

According to real estate experts, if the auction is held as planned, the auction in Ha Dong may last longer than the auctions in Hoai Duc. Because the starting price of the land lots is much lower than the average price in the area, while some lots have to be auctioned for at least 11 rounds.

Regarding land auctions, recently, the Hanoi People's Committee has sent a document to departments, branches, districts, towns, in which the City People's Committee noted that land auction organizers should consider regulating the price steps and auction forms (mandatory multi-round auctions) to ensure competitiveness and closeness to market prices.

Assessing the current situation in land use rights auctions in recent times, in a recent report sent to the Government Office, the Ministry of Construction also pointed out limitations and negative aspects such as in some places there is the phenomenon of "auction brokers" colluding, affecting the rights of participants.

According to the Ministry of Construction, there is a phenomenon of paying very high prices for some lots and then canceling the deposit, creating a virtual price level to manipulate the market. Or the buying and selling of many lots of land for illegal profit is more common, even organized.