Land use rights auction

Unlike the sluggish market in 2023, land use rights auctions in planned development projects have shown some positive signs since the beginning of the year. As of July 2024, the amount of money collected from successful land use rights auctions reached VND 4,736 billion, a 3.2-fold increase compared to the same period in 2023.

The MBQH residential area north of the Ha Trung District Political Center (Ly Nhan village, Ha Binh commune) has 19 land plots put up for auction.

Ha Trung district has many land use right auction projects concentrated in Ha Lai and Ha Dong communes and Ha Trung town. As of July 2024, the entire district had 13 land use right auctions with a total area of ​​4.28 hectares, of which 2.8 hectares were successfully auctioned with a winning bid amount exceeding 167.4 billion VND. Notably, some land use right auctions in the central area attracted significant interest. Many plots of land had winning bids significantly higher than the starting price.

The MBQH residential area north of the Ha Trung District Political Center (located in Ly Nhan village, Ha Binh commune) has a total of 19 land plots put up for auction. The starting price was only 7-9 million VND/m2, but many plots were successfully auctioned at 15-17 million VND/m2, and some even reached 19-20 million VND/m2.

In Yen Son commune, the CL01 residential area planning map also had 19 land plots put up for auction. The starting price was 7 million VND/m2; the winning bids increased to 11-12 million VND/m2. The total winning bid for the 19 land plots was over 23.3 billion VND, a difference of more than 9.4 billion VND compared to the starting price.

Mr. Le Minh Duc, a specialist at the Department of Natural Resources and Environment of Ha Trung district, said: After a period of stagnation, since the beginning of the year, land auctions in some planned residential areas in Ha Lai, Ha Binh, and Yen Son communes have become vibrant again. The reason for this resurgence is that these planned residential areas have potential locations and high demand for land from residents, thus leading to higher winning bid prices. However, in some planned residential areas in other communes, the auction prices have not fluctuated significantly. For example, in the planned residential area of ​​Ha Dong commune, with a total of 85 land plots, two auctions have been held (23 plots were successfully auctioned in the first round, and 7 plots were successfully auctioned in the second round); the total winning bid prices have increased compared to the starting price, but the difference is not substantial.

The Thanh Hoa Asset Auction Service Center is responsible for receiving and auctioning assets, including land use rights in planned development areas in districts, towns, and cities throughout the province. In the first seven months of 2024, the center organized 75 land use rights auctions in planned development areas, with a success rate of approximately 80%. The total winning bids reached over 1,045 billion VND, a difference of over 274.2 billion VND compared to the starting price (an increase of approximately 36%). The planned development areas auctioned by the center are mainly concentrated in the districts of Hoang Hoa, Dong Son, Nhu Xuan, Yen Dinh, Thach Thanh, etc.

According to some auctioneers, in the past two months, at some land plots in potentially lucrative locations attracting public interest, the number of applications for auctions has increased, and the winning bids have also started to rise. This is due to the starting prices being set at levels appropriate to the market, meeting the needs of the people. However, at land plots with starting prices set during the land boom more than two years ago, the situation remains sluggish because the starting prices have not been adjusted and are still high.

According to the list of land use right auction projects for 2024 approved by the Provincial People's Committee (including decisions on adjustments, additions, and removals), in 2024, the entire province has 892 projects (land use right plans) with a total auctioned land area of ​​804.19 hectares; the expected revenue from land use fees is 22,897 billion VND. As of July 2024, the province has auctioned 224 out of 892 projects (reaching 25.11%) with a total area of ​​64.21 hectares. The amount of money collected from successful bids is 4,736 billion VND, equivalent to 20.6% of the plan and 3.2 times higher than the same period in 2023.

According to assessments by relevant authorities, seven localities have achieved over 50% of their planned revenue from land use right auctions for their projects, including Dong Son, Hoang Hoa, Tho Xuan, Vinh Loc, Thach Thanh, Ba Thuoc, and Nghi Son town. Among these, some localities recorded high revenue from auctions, such as Dong Son district (1,868 billion VND), Hoang Hoa district (592 billion VND), Tho Xuan district (560 billion VND), and Nghi Son town (374 billion VND).

Overall, most land use right auction projects have only auctioned a portion of the land within the planning area. Local authorities are continuing to organize auctions to ensure the completion of the 2024 state budget revenue plan from land use right auctions. The Provincial People's Committee has directed relevant departments, agencies, districts, towns, and cities to focus on implementing measures to overcome difficulties and obstacles, and accelerate the progress of land use right auctions for projects.

The Land Law 2024, effective from August 1, 2024, will provide a legal basis for the development of a healthy real estate market, creating conditions for land transactions to take place openly and transparently. The situation of inflated land prices and speculative land bubbles is unlikely to continue because prices will accurately reflect the supply and demand of the market, as well as the potential and prospects of infrastructure development in the surrounding area.

Text and photos: Viet Huong

Source: https://baothanhhoa.vn/hoat-dong-dau-gia-quyen-su-dung-dat-tin-hieu-khoi-sac-tro-lai-221566.htm