Balancing interests in the real estate market, easy becomes difficult (Part 1): Kill two birds with one stone

(Baothanhhoa.vn) - Thousands of land plots supplied to the market have significantly contributed to increasing the State budget revenue and are expected to help solve the housing needs of people, especially low-income earners, workers and laborers. However, in reality, the occupancy rate (houses built and occupied) of the completed auction sites is not high, causing great waste of land resources. The story of the solution to both ensure budget revenue from land auctions and quickly put the auctioned land into use - although not new, is never old.

Báo Thanh Hóa•10/05/2025

Many urban area projects and planning sites are being urgently invested in and built in Nam Ngan ward ( Thanh Hoa city). Photo: Dong Thanh

The auction was successful with the winning bid price much higher than the starting price, most of the land put up for auction in 2024 and the first months of this year in the province were "sold out". Land allocation and land lease through the form of land use rights auction has been a way to kill two birds with one stone, increasing budget revenue, bringing opportunities to businesses and investors, and ensuring a healthier and more sustainable real estate market.

Market recovery

Since mid-2024, Mr. Le Hoang Linh, a real estate broker for a reputable company in Thanh Hoa City, has been busier due to many people looking to buy land. He said that since 2024, when there was information that many large projects were started in Thanh Hoa City and neighboring districts, he and many investors participated in the auction of land use rights in many planning areas (MBQH). After winning the auction, he quickly sold each plot of land for a profit of 10 - 50 million VND.

The market has recovered, and many real estate trading floors in the province have begun to bustle with customers. Mr. Nguyen Van Duong, owner of a real estate trading floor in Thanh Hoa City, said: Not only in Thanh Hoa City, but also in neighboring districts, land prices are slowly increasing again. Most of the land lots advertised by the company are sold out very quickly. The company's customers are mainly high-income people who buy land to store, waiting for prices to increase to sell for profit.

From 2024 to now, the economy has recovered rapidly, many projects have started construction, creating a positive mentality and confidence for real estate investors (including organizations and individuals). This has helped many plots of land to be successfully auctioned in one event. For example, in Thanh Hoa city, in 2024, up to 20 MBQH with an area of over 14.2 hectares were successfully auctioned, earning nearly 1.9 trillion VND for the state budget. In Thieu Hoa district, there were also 21 planning plots of land auctioned with 586 plots of land, the total auction winning amount reached nearly 800 billion VND. In Ha Trung district, during the year, 13 residential plots with 165 plots of land were successfully auctioned, earning 168.45 billion VND...

Not only that, many "defective" land lots remaining in the sites that were auctioned in previous years have also been "liberated" in 2024. For example, in Ha Trung district, 12 land lots in the sites: Nui Quan residential area (Ha Dong commune), Dong Vang residential area, Phong Van residential area (Ha Trung town), Dong Truoc residential area, Con Quy residential area (Ha Linh commune) have been successfully auctioned. Or in Thieu Hoa district, the sites: Thanh Thien village residential area (Thieu Thanh commune), Dong Bay residential area (Hau Hien town), Con Ac residential area (Thieu Trung commune) all have 2 land lots that have also been sought by investors...

According to the summary from the districts, not only is the auction success rate high, but many plots also have auction winning prices much higher than the starting price. Recently, in Thieu Hoa district, 88 plots of land (average 100m2 each) in the Co Do Residential Area north of Provincial Road 502, Thieu Hoa town were auctioned with the winning price 23.6 times higher than the starting price, reaching 118 billion VND. This is the planning site with the highest auction winning price compared to the starting price in Thieu Hoa district so far, at 113 billion VND. At the end of last year, in this locality, 46 plots of land in Dong Bang Residential Area, Village 2, Thieu Ly commune were also successfully auctioned with the winning price 1.6 times higher than the starting price, reaching 61.2 billion VND...

Another positive signal is that after successful auctions, most of the land lots were put on the market for sale and resale quite actively. Thanh Hoa City is where this excitement is quite evident. Specifically, after a successful auction in mid-2024 with an average price of 18.1 million VND/m2, MBQH 3241 in Dong Hai Ward (Thanh Hoa City) is being offered for sale at twice the price. Or MBQH 1820 in Quang Thanh Ward (Thanh Hoa City) from an average auction price of 12.7 million VND/m2 is also being offered for sale at nearly 40 million VND/m2...

Mutual benefit between the state and investors

According to the report of the Department of Construction, from April 2024 to present, the real estate market in the province has shown signs of recovery, with the number of real estate transactions increasing compared to 2023. Housing projects for subdivision and auction of land use rights in major cities and surrounding areas of Thanh Hoa, Hoang Hoa, and Quang Xuong cities have a high success rate of auctions. In particular, some projects in Thanh Hoa, Hoang Hoa, and Thieu Hoa cities have auction winning prices that have increased from 1.5 to 2.2 times compared to the starting price.

Balancing interests in the real estate market, easy becomes difficult (Part 1): Kill two birds with one stone

A planning site in Thieu Hoa town was successfully auctioned in 2024, contributing to increasing the district's budget revenue.

Mr. Nguyen Manh Tuan, Head of the Department of Housing and Real Estate Market Management (Department of Construction), said: "In 2024, there will be 316 successful auctions in the province, with the winning bid price reaching over 10.8 trillion VND (as of December 20, 2024). This amount is 2.4 times higher than in 2023, contributing significantly to bringing the province's budget revenue to over 56 trillion VND in the year. Through inspection and supervision, the organization of land use rights auctions by localities is carried out publicly, objectively, honestly, equally, protecting the rights and legitimate interests of the participating parties in accordance with the provisions of law. Therefore, land allocation and land lease through land use rights auctions has limited negativity and loss of land use fees and land rents, contributing to supplementing a large source of revenue for the local budget and reinvesting in local infrastructure. methods to achieve socio-economic development goals.

The recovery of the real estate market is a positive signal for the economy, contributing to increasing state budget revenue, stimulating economic sectors to develop and real estate investors to have more opportunities to increase income... Meanwhile, in March 2025, the Chairman of the Provincial People's Committee approved the list of land use rights auction projects in 2025 (phase 1) with 892 sites, with an auction area of 730 hectares, and the expected revenue is over 28 trillion VND. This means that thousands of more residential plots will be supplied to the market in 2025. However, putting residential land into use after winning the auction is a completely different story.

Dong Thanh

Lesson 2: After winning the auction, the land was abandoned.

Source: https://baothanhhoa.vn/hai-hoa-loi-ich-o-thi-truong-bat-dong-san-chuyen-de-hoa-kho-bai-1-nhat-cu-luong-tien-248266.htm