Hundreds of land lots in Soc Son and Thanh Oai districts are about to be put up for auction.
According to the plan, in early March 2025, a number of districts in Hanoi will organize auctions of land use rights for hundreds of residential land plots, with areas ranging from 60 – 200 m2/plot, with starting prices adjusted higher than in 2024.
Notably, the People’s Committee of Soc Son district plans to re-auction 36 land plots in Quang Tien commune due to an unsuccessful auction in November 2024 with an unusual price of up to 30 billion VND/m2 (about 12,000 times higher than the starting price), forcing the Hanoi City Police Department to issue a Decision to temporarily detain 5 subjects for the act of “Violating regulations on property auction activities”, as prescribed in Clause 2, Article 218 of the 2015 Penal Code…
According to Thanh Xuan Joint Stock Auction Company, 36 plots of land in Dong Lai village, Quang Tien commune, Soc Son district were auctioned on March 8 with areas ranging from 90 – 220.6 m2; the starting price was raised 3.7 times compared to the old price (about more than 9.1 million VND/m2). Auction participants must pay a deposit of from 164 million VND to more than 400 million VND/plot of land.
According to the new regulations, the above land plots will be organized in the form of a single-round auction, with a price step of VND100,000/m2 to avoid collusion in raising or lowering prices. In 2024, the auction will be conducted in the form of a multi-round auction (minimum 6 rounds, with a price step of VND3 million/m2)
Also in early March 2025, Thanh Oai District People’s Committee will organize an auction of 54 plots of land in Ngo Ba area, Thanh Than village, Thanh Cao commune. These plots of land were auctioned in August 2024, but all the winning plots with prices ranging from 80 million to more than 100 million VND/m2 (dozens of times higher than the starting price) all abandoned their “deposits”; only 13 plots of land with prices ranging from 51.6 – 55 million VND/m2 fulfilled their financial obligations.
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According to regulations, the upcoming auction on March 1 of Thanh Oai district, 54 plots of land are divided into 3 groups: Group 1 has 6 plots of land, starting price of about 16.3 million VND/m2 (an increase of about 30% compared to the old starting price); Group 2 has 24 plots, starting price of 15.6 million VND/m2; Group 3 has 24 plots, price from 10.9 million VND/m2 (an increase of more than 26% compared to the old price).
A representative of the Thanh Oai District Land Fund Development Center said that the total area of 54 plots of land is 4,405.04 m2; the plots range from 60.01 m2 to 85 m2. The auction is conducted in groups of plots by direct secret ballot in one round. For each group of plots of land auctioned, bidders are given a bid slip to record their bid. The deposit is from 130 to 265 million VND per plot…
Auction activities in the districts on the outskirts of Hanoi heated up in the last 4 months of last year. In the first 11 months of 2024, the city collected nearly 18,600 billion VND from land use rights auctions, reaching about 74% of the plan and is expected to complete the target by the end of the year. This figure has nearly doubled compared to previous years (an average of nearly 10,000 billion VND per year).
It can be said that land auction is one of the important tasks of localities with the goal of creating a place to live for people, at the same time, increasing budget revenue to invest in infrastructure development.
However, the reality of land auctions in suburban districts of Hanoi shows that “pushing” land prices up abnormally high and then giving up halfway, not continuing to bid, or cases of winning the bid but not paying, accepting to lose hundreds of millions of dong in deposits are becoming a worrying issue for the Hanoi real estate market.
To prevent this situation, experts say that auction organizers need to closely review and ensure that all auction processes and procedures comply with legal regulations. At the same time, state management agencies need to continue to take timely corrective measures when detecting unusual signs; promptly review and adjust mechanisms and policies, and have stricter regulations to overcome existing problems and shortcomings in land auctions.
Late last year, the Prime Minister continued to request ministries and localities to rectify land auctions after some recent sessions showed signs of price inflation, disrupting the market.