Accordingly, 27 land plots at the following locations: Ha Khau copper area, Dong Danh - Dong Coc area, Dong Bo - Dong Chuc - Cua Cau - Dong Men area (area B, Phu Luong ward); Sau Chua area (symbol X8, Yen Nghia ward); Duoc area (symbol X7, Duong Noi ward), Ha Dong district.
These plots of land range in area from 48 to 72.1 m2/plot with starting prices from 22.8 to 32.2 million VND/m2. The purpose of land use is urban residential land, long-term use.
The auction will be held at 8:30 a.m. at the Hanoi City Cultural Center Hall (No. 7 Phung Hung, Van Quan Ward, Ha Dong District).
Previously, the reception of auction registration documents began from 8:00 a.m. on October 3 to 5:00 p.m. on October 16. The deposit into the bank account of National Joint Stock Auction Company No. 5 also took place from October 16 to October 18.
Hanoi auctions 27 land plots in Ha Dong district. (Illustration photo: Minh Duc).
The auction of these 27 plots of land was scheduled to take place on September 7 but had to be temporarily suspended at the request of the Ha Dong District Investment and Construction Management Board, in the context of management agencies requesting to review and rectify land auction work, when many places recorded winning prices dozens of times higher than the starting price.
Since early August, land auctions in suburban districts of Hanoi have attracted a large number of participants, with thousands of registrations, causing a stir in the market. Notably, the auctioned land in Thanh Oai, Hoai Duc reached hundreds of millions of VND/m2, of which the highest was over 133 million VND/m2. This price was commented by many investors and experts to exceed the real value compared to other plots of land in the same area and there was a phenomenon of price inflation that disturbed the market.
Not long after, many plots of land with this "fake price" were abandoned by buyers. Many opinions said that the starting price was too low, so the deposit was not enough to prevent the situation of not paying if the winning price was high.
Commenting on the recent land auction situation, the Ministry of Construction said that in the process of organizing land auctions in some places, there were still phenomena of "auction brokers", collusion... affecting auction participants.
" The phenomenon of bidding very high prices for some plots of land, then canceling deposits, creating virtual price levels to manipulate the market, buying and reselling many auctioned plots of land to make illegal profits is quite common in many places and is even organized ," the Ministry of Construction said.
According to the Ministry of Construction, there are three main reasons affecting the results of land auctions in Hanoi recently.
Firstly, the low starting price attracts many participants. Secondly, the deposit is low. Thirdly, in the auctions, there are many investment groups that specialize in participating in the auction and then selling immediately to make a profit, with a price difference of 200-500 million VND/lot.
The Ministry of Construction also affirmed that the winning land auction result is many times higher than the starting price, which will have a negative impact on the land and housing price level, and on the housing and real estate market (supply and demand). Accordingly, this price will be used as reference information to determine the land price and then create a new price level that is even much higher for the area near the auction point.
This is beneficial for projects that have been allocated land and have paid land use fees, but is disadvantageous for projects that have been approved but have not paid land use fees.
The reason is that one of the methods to determine land prices is the direct comparison method through analyzing the prices of vacant land plots similar in terms of land use purpose, location, profitability, infrastructure conditions, area, shape, legality of land use rights transferred on the market, winning land use rights auctions to compare and determine the price of the land plot to be appraised.
In addition, the Ministry of Construction also assessed that winning land auctions at prices many times higher than the starting price also affects investors' psychology, leading to an increase in the prices of housing and real estate products that have been or are being offered for sale near the auction location.
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