Auctioned land plots are showing promising results.

At many auctions, the majority of land plots were successfully sold. This result also helped several districts and counties in the capital city meet their revenue targets from land auctions. This also serves as a foundation for this land plot segment to continue to be a bright spot in the capital city's real estate market in 2024.

Many districts and counties successfully auctioned off land.

In the final auction of December, Me Linh district ( Hanoi ) put 47 plots of land in Chu Tran village (Tien Thinh commune) up for auction, attracting 200 participants. As a result, all 47 plots were sold at prices higher than the starting price, ranging from 200 million VND to 2 billion VND per plot – significantly higher than the initial price.

Mr. Nguyen Hong Ky (an investor) said that at this auction, he successfully bid on a 103m2 plot of land at 28.5 million VND/m2, 450 million VND higher than the starting price. "I highly value the commercial location of this plot of land, so I confidently bid higher than the starting price. In terms of shape, the plot has a 6m frontage and is located near several major roads leading to the center of Vinh Phuc City. Buying land through auction is very safe in terms of legal aspects and planning, so I feel very secure. I expect that when the real estate market recovers, this segment will experience vibrant growth."

Auctioned land is favored by investors because of its strong legal standing and stable planning.

In 2023, Me Linh district organized 17 land auctions across 9 projects, covering a total area of over 2 hectares. The revenue generated was approximately 700 billion VND, exceeding the assigned target by over 200 billion VND.

According to Hoang Anh Tuan, Chairman of the People's Committee of Me Linh District, despite the sluggish real estate market this year, land auctions in the locality have been effective thanks to the decentralization of authority by Hanoi City to the district to determine the starting price. This helps to ensure that the starting price is closer to reality. In 2024, Me Linh District plans to auction land use rights at 7 projects with a total area of 4.8 hectares, encompassing 462 land plots. In 2025, 14 projects will be implemented with an area of 11 hectares, encompassing approximately 1,000 land plots. The revenue from land use rights auctions is expected to be invested in infrastructure development to meet the criteria for becoming a district after 2025 and a city directly under the Hanoi Capital after 2030.

In 2023, Phu Xuyen District auctioned off all 121 land plots belonging to 17 projects in 13 communes and Phu Xuyen town. The majority of these plots are located in traditional craft villages, and the winning bids were higher than the starting prices. As a result, in 2023, the district collected 274 billion VND from land auctions, exceeding 101% of the plan assigned by the District People's Council and over 161% of the plan assigned by the city. This achievement is due to the district's proactive planning of suitable and convenient land auction locations to attract people to participate in the auctions.

Mr. Pham Thanh Cong, Director of the Land Development Center of Phu Xuyen District, said that in 2023, the center made efforts to complete the plan assigned by the District Party Committee. From the end of 2023, the district focused on building infrastructure to complete the 2024 plan. The land plots selected for auction all have convenient transportation connections, especially focusing on high-value craft village land areas where there is a high demand for housing and production from the people.

Changes stemming from policy

Recognizing the difficulties facing the real estate market, especially the land plot segment, districts and counties in Hanoi have focused on reviewing residential land funds, prioritizing the construction of infrastructure for auctioned land plots in central locations with convenient transportation connections and profit potential to attract residents and investors. As a result, several other districts such as Thanh Tri, Thuong Tin, Phuc Tho, My Duc, and Soc Son have also completed or exceeded the city and district People's Council targets for revenue collection from residential land auctions.

According to Mr. Nguyen Van Khoi, Chairman of the Vietnam Real Estate Association, some districts in Hanoi have achieved good revenue collection results from land auctions partly due to the city's flexible policy management in delegating authority to district-level People's Committees to decide on the establishment of specific land valuation councils and determine the starting price for land use rights auctions for land plots valued (according to the Land Price Table) at 30 billion VND or more. This helps districts proactively and promptly adjust the starting price to suit market conditions, attracting people to participate in the auction.

It can be said that, in the context of a challenging real estate market, especially for land plots, the segment serving the actual housing needs of the people, such as auctioned land, is considered a bright spot in the Hanoi real estate market in 2023. These positive results will be an important foundation for districts and communes to make adjustments in planning suitable land auction locations, helping to facilitate land auctions in 2024 and ensuring revenue for the budget.

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