Land auctions in suburban districts of Hanoi cool down

Thanh Oai District Land Fund Development Center has just auctioned 23 plots of land in Man Ca, Man Cong, Ma Man Trong areas, Van Quan village, Do Dong commune with a total area of ​​over 2,500 m2. The plots have an area of ​​93-171 m2, starting price of 5.3 million VND/m2, equivalent to a deposit of 98-181 million VND/plot.

This session attracted nearly 100 investors with more than 400 applications, a sharp decrease compared to the event in August. At that time, the auction of 68 land plots in Thanh Cao commune had about 1,500 participants, pushing the highest winning price to more than 100 VND/m2.

After 11 rounds, 10 lots were successful, the rest were eliminated due to violations of regulations. Of which, the highest winning lot was over 75 million VND/m2, 14 times higher than the starting price. The lowest winning lot was over 55 million VND/m2, 10 times higher than the starting price.

The winning price of this session decreased by 20% compared to the previous auction in the same area. Compared to the record auction that recorded more than 100 million VND in August, this price decreased by about 35%.

Similar to previous auctions, to own a plot of land, investors must go through at least 6 rounds of bidding, with each step offering a minimum price of 5 million VND/m2. The auction only ends when there are no more bidders. This regulation is to prevent participants from colluding and winning at low prices.

Thanh Oai is a southern district, more than 20 km from the center of Hanoi, with a population of more than 200,000 people. This district has not yet had a large-scale urban area completed.

The number of people participating in auctions in districts on the outskirts of Hanoi has recently decreased sharply in the context of management agencies taking many steps to cool down this activity. Many localities have temporarily suspended land auctions since the end of August to review legal issues.

Earlier this month, the Ministry of Natural Resources and Environment proposed that the Government direct localities to publicize information about depositors to avoid price inflation and profiteering through land auctions.

By the end of September, districts in Hanoi had collected more than VND11,000 billion from land use rights auctions. In the same period last year, the city collected about VND9,200 billion.