Hanoi re-auctions land series that were once 'paid 30 billion VND per square meter'

Thanh Xuan Joint Stock Auction Company has just announced the auction of the right to use 36 land plots, assets of the Soc Son District Land Fund Development Center, on the morning of March 8.

Accordingly, 36 auctioned plots are located in Dong Lai village, Quang Tien commune, Soc Son district. These are residential plots with stable and long-term use.

The auctioned plots have an area of ​​90 - 220.6 m2/plot; starting price is over 9.1 million VND/m2; equivalent to each plot of land costing from over 821 million to over 2 billion VND.

Time for receiving auction registration documents until 5:00 p.m. on March 5, during office hours.

The auction will be conducted by direct voting for each plot of land, using the ascending price method. The step price is 100,000 VND/m2. The auction will take place at the Soc Son District Gymnasium.

Regarding the auction of land plots in Soc Son district, on December 3, 2024, the Investigation Police Agency (Hanoi City Police) issued a decision to temporarily detain 5 subjects who were determined to have intentionally disrupted the auction of 58 land plots in Dong Lai village, Quang Tien commune, Soc Son district, which took place on November 29, 2024.

According to initial statements, before the auction, the subjects determined the price to be only about 30 million VND/m2; this price could be sold at a difference, so to control the auction results, the subjects agreed with each other on the price through 6 mandatory rounds.

According to the agreement, if the price paid by investors in round 4 is higher than 30 million VND, then in round 5, a sudden high price will be offered to win. Then, the auction is abandoned in the final round, round 6, forcing the auction to stop and be re-auctioned next time, because it did not have enough 6 rounds of bidding according to the regulations.

With this tactic, 36/58 plots of land were offered at a high price of nearly 100 million VND/m2 and then abandoned. Pham Ngoc Tuan even offered a price of over 30 billion VND/m2 (about 12,000 times higher than the starting price)... leading to 36 plots of land being unsuccessfully auctioned.

Then, Soc Son district announced that it would re-auction the above 36 land plots on December 28, 2024. However, this auction was postponed to re-determine the starting price according to Decision No. 71 of the Hanoi People's Committee on regulations and amendments to the price list of land types, effective from December 20, 2024.

Thus, the adjusted starting price is more than VND 9.1 million/m2, which is about VND 6.7 million/m2 higher than the old starting price of more than VND 2.4 million/m2 in 2024.