ChatToday: High land auction prices but massive deposit cancellations, how to prevent this?

Lawyers share measures to prevent massive abandonment of land auction deposits (Video: Pham Tien).

Recently, the results of land auctions in the suburbs of Hanoi have shocked many people. Specifically, in Hoai Duc district (Hanoi), the winning land price of 19 lots in Tien Yen commune ranged from 91-133 million VND/m2, 12.5 to 18 times higher than the starting price.

In Thanh Oai district, the winning price of 68 plots of land in Thanh Cao commune ranged from 51-100 million VND/m2, 5-8 times higher than the starting price. The winning price of the two auctions above was much higher than the surrounding land price.

Immediately after the auction, most of the plots were sold at a price difference of 400-600 million VND. Not only that, the selling price of land in the surrounding market was also immediately pushed up to 5-10 million VND/m2.

Recently, in the auction of 68 plots of land in Thanh Oai district, 55 plots had deposits forfeited, including the highest priced plot of land at over 100 million VND/m2. Of the total 13 plots with full payment, the highest priced plot was 55 million VND/m2.

Sharing in the October 1 episode of ChatToday, Lawyer Truong Anh Tuan - a real estate legal expert - said that the phenomenon of "big hands" and speculators manipulating land auctions requires the involvement of authorities to determine.

However, from an economic perspective, most of the people who participated in the auction in the past were for profit. Initially, these people thought that if they won the auction for a few beautiful plots of land, they could sell them for profit. But later, when they balanced the economic problem, they saw that the high price would make it difficult to make a profit, so they abandoned their deposits en masse.

According to Mr. Tuan, land auctions are currently just civil transactions. Before the auction, participants must pay a deposit. If they win but do not pay, they will lose their deposit, which is a form of punishment.

Regarding the issue of Hanoi requiring the public disclosure of the identities of those who bid high on land but withdrew their deposits, Mr. Tuan said that it was to create psychological pressure. This would make those who withdrew their deposits feel embarrassed and not repeat similar actions.

To prevent the situation of winning high bids but abandoning deposits, Mr. Tuan said that there should be regulations prohibiting participation in auctions in the area for a certain period of time. Because those who abandon deposits have shown low civil responsibility and may repeat the same thing in the future.

In addition, he said that it is necessary to soon build a mechanism to tax real estate according to the time of transfer. For example, those who have just won an auction but immediately transfer the property need to pay high taxes based on the price determined by the State.

In addition, a tax mechanism for those who acquire and own a lot of land but do not put it into use for economic development, according to him, is necessary.

ChatToday is a talk show with characters related to economic issues. This product was conceived and implemented by members of the Economic Department of Dan Tri Newspaper.

Appearing on Dan Tri and the newspaper's social media platforms at 9am on the 1st and 16th of every month, ChatToday brings stories from guest characters or their perspectives and views on an economic topic that readers are interested in.

Video: Video: Pham Tien

Source: https://dantri.com.vn/bat-dong-san/chattoday-dau-gia-dat-cao-nhung-o-at-bo-coc-ngan-chan-bang-cach-nao-20241001005804715.htm