What is the land lot that just won the auction for more than 103 million VND/m2 in Hoai Duc?

This lot has the symbol LK102, the largest area in the row with more than 145 m2 and is a corner lot with 2 frontages. The lot is located in the auction area, the Northeast borders the main traffic road of Tien Le village, Tien Yen commune and Tien Yen Kindergarten. The South and East borders agricultural land. The West borders agricultural land and a lake. The land is about 8 m from Tien Le street, about 400 m from Ring Road 4.

The auctioned land has infrastructure. (Photo: Minh Duc).

Locals said that this auctioned land was formerly Long Khuc field in Tien Le village. In mid-2022, the locality began reclaiming the land to build residential infrastructure, preparing for the auction.

According to the reporter's observation, the "electricity, road, school and station" system around the land is relatively complete. Basic technical infrastructure such as drainage, water supply, electricity supply, lighting, trees, sidewalks, etc. have all been equipped by the commune. The road surrounding the plots of land is wide enough for two plots to easily avoid each other.

The auctioned land is about 300 meters from Tien Yen Primary School and Tien Yen Secondary School. Similarly, the distance from the land to the market, medical station, and Tien Yen Commune People's Committee is only about 500 meters. Next to the auctioned land is Tien Le village. Here, houses have sprung up close together.

The land is located near Ring Road 4 but there are still many fields around. (Photo: Minh Duc).

In a broader scope, the auctioned land is about 20 km from the center of Hanoi, about 4 km from the Lang - Hoa Lac highway. Within a radius of about 5 km around the land, there are 2 outstanding projects: Hado Charm Villas urban area and Splendora An Khanh Mailand.

However, according to investors, the services and utilities of this land plot are still not many, the population is not dense and the surrounding area is still mainly rice fields.

In addition, although the LK102 plot is a corner plot, it also has certain disadvantages. Firstly, the plot is in the shape of a square, unbalanced quadrilateral. This will cause difficulties when designing a house later. Secondly, this plot is located close to Ring Road 4, if you decide to buy it for living, it will be difficult to avoid dust and noise pollution.

The land plot priced at 103.3 million VND/m2 is a corner plot.

Expensive compared to real value?

Commenting on the price of over 103 million VND/m2, many investors said that this is quite a high price compared to the land price of surrounding areas. Many plots located on the main road of Tien Le village are currently only fluctuating between 80 - 90 million VND.

Mr. Nguyen Hai Anh - a real estate broker in Hoai Duc said that 103.3 million VND/m2 is the winning price of the auction, but the selling price on the market still has a difference, so the price per m2 can be pushed up to around 110 million VND/m2. " This is a quite high price compared to the market because these plots of land are still surrounded by fields, there are not many amenities, so this area can only be bought for living, trading and doing business is very difficult because it is not bustling ", Mr. Hai Anh commented.

Real estate experts believe that the reason for the sharp increase in land prices in the newly auctioned area in Hoai Duc is that some suburban districts are about to be upgraded to districts and are boosting investment in social infrastructure. Many inter-district and inter-commune roads have been expanded and paved, bringing a spacious appearance to the countryside.

In particular, the Ring Road 4 around the center of Hanoi is becoming more and more obvious, promising great economic development potential.

Explaining the heat of the land auction in the suburbs of Hanoi, Mr. Nguyen The Diep - Vice President of Hanoi Real Estate Club - said that in the context of high housing prices, the subdivided land segment is sought after by many people because it is affordable for many people. However, the Real Estate Business Law 2023, which took effect on August 1, has banned the subdivision and sale of land in 105 cities and towns. The scarcity of supply has caused people's interest in suburban land auctions to increase sharply.

In addition, information about planning, infrastructure and new regulations related to the real estate market are also making land prices in some suburban districts of Hanoi become more active again.

Mr. Nguyen Van Dinh, Chairman of the Vietnam Real Estate Brokers Association, commented that although the winning price on November 4 was lower than the previous auction in August, it was still high. The subjects suffering from the consequences of the Hoai Duc district land auction were the market, the government and especially the people with real housing needs in this area.

" People are the ones most affected when they have to face having to buy real estate at inflated prices, which are not in line with reality. As for investment enterprises, they also do not dare to enter that area because when creating a new price level, compensation will also be higher, higher land use fees will make investment costs higher, " said Mr. Dinh.

Chau Anh

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