According to records, currently, the two auctioned lands of Thanh Oai and Hoai Duc districts no longer have the scene of land brokers gathering in groups of three or five to invite customers to sell at a higher price.
Brokers selling at a high price have disappeared.
In recent days, the market has not recovered from the shock of two land auctions in Hoai Duc and Thanh Oai districts (Hanoi) with the highest prices being 133.3 million VND/m2 and 100.5 million VND/m2 respectively. These winning prices are much higher than the region.
It is worth mentioning that right after the auction, some brokers set up tables and chairs on the land to invite customers with a price difference of hundreds of millions of dong per lot.
Ms. Thuy – an investor in Ba Vi (Hanoi) – said that her group participated in the auction of 17 land lots on August 19 in Hoai Duc district. However, the group only won 3 lots with prices of 91.3 million VND/m2, 97.3 million VND/m2 and 121.3 million VND/m2 respectively. Immediately after that, this person advertised all 3 land lots for sale with a price difference of 600 million VND/lot.
Or the auction of 68 plots of land on August 10 in Thanh Oai district, as soon as it ended, the winners immediately advertised the plots for sale at a difference of 300 million to 500 million VND/plot.
On August 21, Prime Minister Pham Minh Chinh signed and issued Official Dispatch No. 82 directing relevant agencies to promptly rectify the land use rights auction work. After that, the Ministry of Natural Resources and Environment sent a document to the Hanoi People’s Committee informing them of sending a delegation to conduct a surprise inspection of the land use rights auction work in Thanh Oai and Hoai Duc districts.
According to the reporter’s notes People’s Intelligencethe auctioned land plots in Thanh Than village (Thanh Cao, Thanh Oai district) and Long Khuc village (Tien Yen, Hoai Duc district) no longer have the shadow of brokers setting up tables to consult on buying and selling auctioned land. But the land sale advertising signs are still intact.
Many brokers confirmed that the winners have stopped advertising the price difference. Ms. Huong, a real estate broker in Hoai Duc district, said that after the auction, many brokers advertised the price difference of several hundred million VND per lot. Some lots were available for transfer. However, some landowners have stopped selling. At the auction site, there are no more brokers setting up tables and chairs to advise customers.
Mr. N.D.Q, a real estate broker in Hoai Duc district, said that immediately after the district’s decision to temporarily suspend the auction of 52 land lots, many landowners who won the auction on August 19 announced that they would stop selling immediately. They also said that they would consider further when the results of the inspection were available.
A similar situation occurred in Thanh Oai. Mr. Tung – a local real estate broker – said that after the auction, many winners advertised to sell their land for a difference of 300 to 600 million VND/lot. However, just one day later, the difference had dropped to 100-300 million VND/lot. When the Ministry of Natural Resources and Environment’s inspection team came to inspect the auction, some landowners stopped selling.
Ms. Ha – a resident of Thanh Than village, Thanh Cao commune – said that a few days before the land auction, many land brokers had set up tables and chairs to consult on buying and selling auctioned land. But in recent days, the land brokers have not been seen “gathering in groups of three or five” anymore.
She said that some people in the area participated in the land auction but only paid about 40 million VND/m2, equal to the market price in the area. “Land here is priced at 100 million VND/m2, while the planning for many years to come does not include new infrastructure, I do not understand what they are buying it for?”, she said.
The land has many billboards advertising land consulting offices (Photo: Duong Tam).
Experts talk about abnormalities, signs of creating “land fever”
According to Mr. Nguyen Van Dinh – Chairman of the Vietnam Association of Realtors (VARS), the fact that land prices in locations with unremarkable infrastructure and utilities, in a suburban area with the potential for price increases at a normal level, but reaching over 100 million VND/m2, equal to land prices in urban areas and densely populated areas, is abnormal, far exceeding the actual value. This is the result of unhealthy purposes.
He commented that many investors participating in these auctions are “professional” land auctioneers, they often participate with the simple purpose of “surfing”. They do not care about the real value, just win and then buy and sell immediately to make a profit or are ready to forfeit their deposit if the market does not respond.
The more dangerous purpose is to create a “land fever”. These individuals take advantage of the auction deposit to inflate the prices of related land plots. They even disregard the risks, legalizing the price by paying in full according to the winning bid price, to use this price as a basis to stimulate land prices in outlying districts, causing land prices in many places to escalate, even to “virtual fever”.
As a result, many investors have their capital tied up, creating abandoned land, negatively affecting the recovery process, developing in a safe, healthy and sustainable direction of the real estate market. Besides, it also affects the socio-economic development of the locality in particular, and the whole country in general when the cash flow is stagnant in land, not going into other economic activities.
On August 10, Thanh Oai district successfully organized an auction of 68 land plots in Ngo Ba area, Thanh Than village, Thanh Cao commune (Thanh Oai, Hanoi), with an area of 60-85m2 with starting prices from 8.6 million VND/m2 to 12.5 million VND/m2. The auction attracted 4,600 applications, but only 4,201 qualified applications from 1,545 people.
Notably, at the end of the auction, the corner lot with the highest winning price was nearly 100.5 million VND/m2, 8 times higher than the starting price. The regular lots had winning prices of 63-80 million VND/m2, 5 to 6.4 times higher than the starting price.
Most recently, on August 19, there was an auction of 19 plots of land in LK03 and LK04, Long Khuc village, Tien Yen commune, Hoai Duc district (Hanoi). The 19 plots of land put up for auction ranged from 74-118m2. The starting price for the auction was 7.3 million/m2. The deposit ranged from 109 to 172 million VND/plot. The auction attracted 700 applications.
After a 20-hour auction, 19 plots of land were successfully sold. The highest winning price was 133.3 million VND/m2, more than 18 times higher than the starting price, while the lowest plot was 91.3 million VND/m2, 12.5 times higher than the starting price.