Hanoi : Behind-the-scenes stories regarding the postponement of the Ha Dong land auction.
Investors believe that if this auction is held as planned, the milestone of winning bids exceeding 100 million VND/m2 could very well be repeated.
Auction temporarily suspended for 27 land plots, starting price from 22 million VND/m2.
The National Auction Company No. 5 announced that it will temporarily suspend the auction of land use rights for 27 plots of land in Phu Luong, Yen Nghia, and Duong Noi wards (Ha Dong district, Hanoi).
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| Map of the land plot auctioned behind the pagoda (Yen Nghia ward). Photo: Provided by the investor. |
Specifically, these are plots of land located in the Ha Khau, Dong Danh - Dong Coc, Dong Bo - Dong Chuc - Cua Cau - Dong Men areas (Phu Luong ward); the Sau Chua area (Yen Nghia ward) and the Duoc area (Duong Noi ward).
The company stated that the suspension of the auction was made at the request of the Ha Dong District Investment and Construction Project Management Board. The auction will be rescheduled as soon as the company receives a decision from the relevant authorities.
Previously, the National Auction Company No. 5, in coordination with the Investment and Construction Project Management Board of Ha Dong District, organized an auction of 27 land plots in three wards: Phu Luong, Yen Nghia, and Duong Noi. The auctioned land plots ranged in size from 48 to 72 square meters, with starting prices from 22 to 32 million VND per square meter and deposit amounts from 221 to 436 million VND per plot.
According to the original plan, this auction was to be held on September 7, 2024. However, this date has been canceled. The organizers have not yet announced a new date for the auction.
Two years ago, land auctioned in Ha Dong was priced at nearly 80 million VND/m2.
The land auction in Long Khuc area, Tien Yen commune, Hoai Duc district, shocked the public with 9 rounds of bidding lasting over 19 hours. However, the auction of 27 land plots in Ha Dong may take even longer. The land plot in Duong Noi ward alone will require at least 7 rounds of bidding. Even the Dong Danh - Dong Coc area in Phu Luong ward will require a minimum of 11 rounds of bidding.
According to sources from the Investment Newspaper, investors have a more favorable view of the real estate market in Ha Dong district compared to Hoai Duc or Thanh Oai districts. Land prices, including those for auctioned land, are also higher in this area compared to the two suburban districts. Therefore, reaching the 100 million VND/m2 mark in the upcoming auction in Ha Dong is entirely plausible.
Furthermore, a "paradox" exists in the recently postponed Ha Dong land auction. That is, in 2022, the starting prices for the land plots were set quite high, ranging from 75 to 79 million VND/m2, two to three times higher than the current starting prices. Consequently, the deposit amount was also very large, exceeding 1 billion VND.
For example, the same plot of land, LK3-1, in the area behind the pagoda (Yen Nghia ward), had a starting price of up to 76 million VND/m2 in 2022, with a deposit of over 1 billion VND. However, in a recent auction announcement, this plot of land only had a starting price of 30.2 million VND, with a down payment of 436 million VND.
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| Infrastructure surrounding the land auction area behind the pagoda (Yen Nghia ward). Photo: provided by the subject. |
Furthermore, in 2022, the area behind the pagoda held an auction for 5 land plots. To date, only 2 plots, LK3-1 and LK2-2, remain unsold. Not only the area behind the pagoda, but other areas included in the recently postponed land auction also have many unsold land plots that have remained vacant for at least the past two years.
A person specializing in land auctions frankly shared with reporters that, due to the high starting prices set by local authorities at the time, coupled with the volatile real estate market, investors were not really enthusiastic about participating, resulting in a surplus of auctioned land.
"This year, land auction organizers have lowered the starting price significantly to attract participants. However, this has inadvertently created a huge discrepancy between the starting price and the winning bid, causing public confusion," an anonymous source shared.
In addition, this person stated that, with the authorities' recent review of land auctions, groups of "land speculators" are feeling quite apprehensive. This person revealed that, for the time being, the number of investors with a tendency to "flip" land plots will decrease their presence at land auctions, as they wait to see how the situation develops.
"Over the past week, some groups who won land auctions in Hoai Duc have had to temporarily hide their social media posts. These people are currently feeling very tired of the somewhat negative information about the auctioned land," the source added.
Source: https://baodautu.vn/batdongsan/ha-noi-nhung-chuyen-ben-le-vu-tam-hoan-dau-gia-dat-ha-dong-d223391.html
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