Hung Yen: No 'mutations' at suburban land auction

Only about 18km from the center of Hanoi , the real estate market in Van Lam district is often of interest to many people. However, there is no sudden high price bid as many people predicted before.

People complete procedures before entering the land auction in Dinh Du commune, Van Lam ( Hung Yen ). (Photo: Manh Khanh/VNA)

On May 10, Van Lam district (Hung Yen) organized two auctions of land use rights in the communes of Dinh Du and Lac Dao.

With a total of 56 land plots, Van Lam district is expected to collect about 265 billion VND.

The auctions attracted a large number of local residents and people from neighboring provinces to participate, because Van Lam district is only about 18km from the center of Hanoi, the real estate market price is often of interest to many people. However, there was no sudden high bid as many people predicted before.

Recorded in the afternoon of the same day at the Dinh Du Commune Cultural House, there were several hundred people attending the auction. The yard was packed with cars, and in the lobby there were also groups of people holding documents in their hands, waiting for an hour before the auction started at 2 p.m.

Mr. Hoang Hai Dang, a participant in the auction, said that this time in Dinh Du commune, there were a total of 49 plots of land, with a total area of 4,117m2; the plots had areas ranging from 78.2m2 to 94.2m2. The groups of plots were auctioned by direct secret ballot in one round, according to the method of bidding up. The starting price of the plots was over 13 million VND/m2. At the end, all the plots were auctioned.

People discuss before the auction. (Photo: Manh Khanh/VNA)

According to Ms. Nguyen Thu Ha, the auction winner, the auctioned land has good infrastructure, lighting, sidewalks and a clear advantage of being located right next to the Industrial Park, so the price is slightly higher than other areas. Specifically, her land plot has an area of 80m2, winning at a price of more than 45 million VND/m2, meaning she had to pay more than 3.6 billion VND for this land plot (a difference of more than 2.5 billion VND compared to the starting price - reporter).

"I think the price is not high, suitable for the reality of suburban areas, when the real estate market is attracting many people's attention," said Ms. Ha.

According to the leaders of Van Lam district, the two land auctions in the area took place normally, without any sudden bidding to create "virtual waves." The highest winning price for a corner lot in Dinh Du commune was 65 million/m2, while in Lac Dao commune the corner lot was 59 million/m2. The winning bidders were all local residents, showing real demand. In the coming time, Van Lam district will continue to auction 14 more land lots in Viet Hung and Luong Tai communes.

Recently, the real estate market in Hung Yen province has been like a "magnet" attracting investors to participate. Notably, the auction on February 9 in An Thi town had the highest winning price of 120 million VND/m2; then on March 5, the land auction at Dan Tien Commune Commercial Center, Khoai Chau district created a new price, with the highest winning price of 158 million VND/m2; much higher than the previous "huge" price in An Thi district (Hung Yen).

Immediately after the auction, many brokers came to sell and transfer the land in Dinh Du commune to take advantage of the price difference. (Photo: Manh Khanh/VNA)

However, without causing an "oil spill" in price increases as many people have predicted, the land auctions on March 31 in many wards of Hung Yen city also took place at a normal level of interest. A total of 66 plots of land equivalent to 8,672 square meters were auctioned with a total starting price of over VND155 billion. Through the auction, Hung Yen city is expected to collect over VND358 billion.

The plots of land put up for auction this time all have full infrastructure; adjacent to roads with a cross-section of 4-24m with areas ranging from 90m2 to over 200m2. Accordingly, the winning land prices also have many different levels, from 11 million VND/m2 to over 82 million VND/m2.

According to Mr. Nguyen Kha Phuc, Chairman of the People's Committee of Hung Yen City, the winning prices at today's auctions were not unusual, with an average winning price of more than 50-55 million/m2; compared to neighboring localities, the winning prices were lower. Before and during the auction, the People's Committee of Hung Yen City widely disseminated information that auction participants must strictly comply with the regulations in the auction, to ensure that there is no phenomenon of "inflating" prices, creating a new price level that is not true to the real value of the land./.

Source: https://baohungyen.vn/hung-yen-khong-co-dot-bien-tai-phien-dau-gia-dat-vung-ven-do-3181100.html