“The highest-priced plot in the auction was the corner plot, at 133.3 million VND/m2. The lowest-priced plot was still 92 million VND/m2. Now, people have already put in quite a lot of money, about 50%. That day, the 133 million VND plot was auctioned for 9-10 rounds, then they stopped bidding and had to draw lots.” - Posing as an investor looking to buy land, the reporter was taken by a real estate agent named Van to see the auctioned land area in Long Khuc village, Tien Yen commune, Hoai Duc district, Hanoi .
At the end of August 2024, the Hoai Duc district government organized an auction that is said to have set the most records ever for rural land, such as: the highest number of participating applications, the longest auction (9 rounds, lasting 19 hours, from 9 am the previous day to nearly 5 am the next day), and the highest winning bid - 18 times the starting price.
No one could have predicted that land prices in the "village" would be so high.
With land prices reaching hundreds of millions of dong per square meter in rural areas, it's naturally impossible for villagers and those primarily engaged in agriculture to afford it. They assert, "It's all for the general public; we villagers don't have that much money to invest."
Immediately after the auction ended, numerous real estate brokerage firms sprang up next to the land plot, displaying advertising signs of all sizes, stretching from one end of the Long Khuc area to the other.
A real estate agent named Van said that some of the people who won the auction also came to these real estate offices to "resell" the properties: "They resell them at a markup. The markup was small, only 200 million VND per plot, but this time it's higher because they've already paid the full amount."
Seeing the "client" hesitating about the price, H. - another real estate agent - said that the land here is "worth every penny," because it has a very prime location, unlike anywhere else:
This area is close to several major transportation routes such as Thang Long Boulevard and is currently undergoing a project to build Ring Road 4, connecting to many other major transportation lines. It's less than 10km from Hanoi Children's Hospital and the National Obstetrics and Gynecology Hospital in Quoc Oai. Furthermore, the land in Hoai Duc is higher than in Quoc Oai because it's located within a protected area. Floods usually flow to the other side of the Day River. The area also has two large, cool regulating lakes and a football field.
According to the schedule, the second auction will be held here on November 4th. As before, the number of bids has already reached a record high, and real estate brokerage offices are eagerly awaiting the "goods." Brokers say that even before the second auction was scheduled, many people came to view the auctioned land and residential land in the village.
If customers have a need, these real estate brokers are ready to introduce them to many other types of real estate products in Hoai Duc district such as residential land, service land, garden land, etc. Even the real estate brokers themselves are surprised that land in their village is "getting so much value":
Land prices in my village have skyrocketed. I still remember last year the price was just over 40 million VND/m2, but now, land in the village, where cars can access, has reached 80 million VND/m2.
Is land in rural Hoai Duc district being "inflated" in price? With land prices "pegged" at high levels, what impact does this have on social welfare in the area? What is the government doing to ensure that land auctions are open, transparent, and that there are no instances of bidders abandoning their contracts? We will revisit this issue in a future program.
Source: https://vov.vn/kinh-te/bat-dong-san/dat-dau-gia-o-nong-thon-vi-sao-nong-post1132694.vov
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