In many auctions, most of the land plots were successfully auctioned. This result also helped some districts of the capital to complete the budget revenue target from land auctions. This is also the premise for this land segment to continue to be a bright spot in the capital's real estate market in 2024.
Many districts successfully auctioned land.
In the last auction of December, Me Linh district (Hanoi) auctioned 47 plots of land in Chu Tran village (Tien Thinh commune), attracting 200 customers to participate. As a result, all 47 plots of land were sold out at prices higher than the starting price from 200 million VND to 2 billion VND/plot - much higher than the starting price.
Mr. Nguyen Hong Ky (investor) said that at this auction, he won the bid for a 103m2 plot of land at VND28.5 million/m2, VND450 million/plot higher than the starting price. "I highly appreciate the commercial location of this plot of land, so I confidently bid higher than the starting price. In terms of physical form, the plot of land is divided into a 6m long frontage, adjacent to many major roads leading to the center of Vinh Phuc City. Buying land at auction is very safe in terms of law and planning, so I feel very secure. I expect that when the real estate market recovers, this segment will grow vigorously."
In 2023, Me Linh district organized 17 land auctions in 9 projects with a total area of more than 2 hectares, the amount collected was about more than 700 billion VND, exceeding the assigned plan by more than 200 billion.
Chairman of Me Linh District People's Committee Hoang Anh Tuan said that although the real estate market is quiet this year, the local land auction has been effective thanks to Hanoi City decentralizing the authority to determine the starting price to the district. This helps to determine the starting price closer to reality. In 2024, Me Linh District plans to organize land use rights auctions at 7 projects with a total area of 4.8 hectares, planning 462 land plots. In 2025, 14 projects with an area of 11 hectares, planning about 1,000 land plots will be implemented. It is expected that the revenue from land use rights auctions will be invested by the district in building infrastructure for socio-economic development to meet the criteria of becoming a district after 2025 and a city directly under the capital after 2030.
In 2023, Phu Xuyen District organized auctions for all 121 land plots belonging to 17 projects in 13 communes and Phu Xuyen town. Most of these plots are located in traditional craft villages and the winning prices are higher than the starting prices. Therefore, in 2023, the district collected 274 billion VND from land auctions, reaching more than 101% of the plan assigned by the District People's Council and more than 161% of the plan assigned by the city. This result was achieved because the district proactively planned suitable and convenient auction land locations to attract people to participate in the auction.
Mr. Pham Thanh Cong - Director of Phu Xuyen District Land Fund Development Center said that in 2023, the center has made efforts to complete the plan assigned by the district Party Committee. Since the end of 2023, the district has focused on building infrastructure to complete the 2024 plan. The land plots selected for auction all have convenient traffic connections, especially focusing on valuable craft village land areas, where people's demand for housing and production is high.
Change from policy
Realizing that the real estate market is facing difficulties, especially the land segment, therefore, districts in Hanoi have focused on reviewing residential land funds, prioritizing the construction of infrastructure for auctioned land plots in central locations, with convenient traffic connections, and profit potential to attract people and investors. Therefore, some other districts such as Thanh Tri, Thuong Tin, Phuc Tho, My Duc, Soc Son have also completed or exceeded the plan assigned by the city and the district People's Council on budget collection from residential land auctions.
According to Mr. Nguyen Van Khoi - Chairman of the Vietnam Real Estate Association, some districts of Hanoi have achieved good budget revenue results from land auctions partly thanks to the city's flexible policy management in authorizing the People's Committees at the district level to decide on the establishment of a specific Land Price Appraisal Council and decide on the starting price for land use rights auctions for auctioned land plots with a value (calculated according to the Land Price List) of 30 billion VND or more. This helps districts proactively and promptly adjust the starting price to suit the market to attract people to participate in the auction.
It can be said that in the context of the real estate market still facing many difficulties, especially land, the segment serving the real housing needs of people such as auctioned land is considered a bright spot of the capital's real estate market in 2023. These positive results will be an important premise for districts to make adjustments in planning suitable auction land locations, helping the land auction in 2024 to be smooth, ensuring revenue for the budget.
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