Speculation or real demand?

Hoai Duc District, Hanoi just held a land auction that lasted until 7:00 p.m. and ended at 4:30 a.m. this morning, August 20.

According to information announced by the organizer, after 9 rounds, lot LK03-12 has the highest price of up to 133.3 million VND/ ^m2 , more than 18 times higher than the starting price. This lot has an area of ​​113 ^m2 , equivalent to a price of 15 billion VND.

16 plots of land have winning prices ranging from 97.3 to 127.3 million VND/ ^m2 , while the lowest winning plot has a price of 91.3 million VND/ ^m2 - still 12.5 times higher than the starting price.

According to the price history tool of the Batdongsan.com.vn technology platform, the common selling price of land in Tien Yen commune, Hoai Duc district in the second quarter of 2024 is 43 million VND/ ^m2 . Over the past year, land prices in this locality have increased by more than 48%.

Thus, the auction price of the 19 land lots in Hoai Duc district mentioned above is 2-3 times higher than the common price level.

Price history is available on each listing at Batdongsan.com.vn, users can view it for free after logging in.

Batdongsan.com.vn's price history tool also shows that the selling prices in neighboring communes in Hoai Duc district range from 22 to 62 million VND/ ^m2 in the second quarter of 2024. Thereby, buyers and investors can compare and contrast to have a more general view.

Hundreds of people stayed up all night to bid on land in a suburban district of Hanoi.

Mr. Dinh Minh Tuan, Director of the Southern Region of Batdongsan.com.vn, commented that the results of land auctions with such high prices will make the cost of site clearance for new projects more expensive. With the winning bid being 2-3 times higher than the average, people who own land in the surrounding area have the mentality of pushing up the selling price of their land. The sudden high land price can also create a trend of land speculation, when many people rush to buy land in the hope of making a profit from the continued increase in land prices. However, this can cause a situation where money is stagnant in land, instead of being circulated in other economic activities.

According to statistics from Batdongsan.com.vn, the demand for land in the second quarter increased by 33% compared to the first quarter of 2024. However, this is only a local improvement in some areas, especially in the North. In particular, Hanoi witnessed an increase of 75% in the number of people interested in land.

Specifically, in the first half of 2024, land in the areas of Dong Anh, Gia Lam, Hoai Duc, Thach That, and Quoc Oai of Hanoi recorded an increase of 48% - 104% in searches, leading to an increase in land prices in these suburban districts of 4% - 24% compared to the second half of 2023.

According to the plan of Hanoi People's Committee, Hoai Duc along with Gia Lam, Dong Anh, Dan Phuong, Thanh Tri are 5 districts that will become districts in 2025. Hoai Duc is located in the West, more than 15 km from the city center. This district has an area of ​​82 ^km2 , a population of over 230,000 people, including 19 communes and one town.

Source: https://nld.com.vn/dau-gia-dat-xuyen-dem-tai-ha-noi-dau-co-day-gia-hay-nhu-cau-thuc-cua-nguoi-dan-196240820112315548.htm