Thanh Oai land after auction is being sold for a billion dong difference: Is the 'fever' real or virtual?

At the end of the Thanh Oai district land auction on November 16, the highest winning price was up to 90 million VND/m2, 17 times higher than the starting price, and the lowest was more than 45 million VND/m2, more than 8 times higher.

Notably, immediately after the auction results were announced, many plots of land were immediately put up for sale with price differences ranging from several hundred to billions of VND/plot. Specifically, corner plot 112 with an area of 157.1 m2 was put up for sale with a price difference of up to 1 billion VND. Many other plots were also put up for sale with price differences ranging from 100 - 200 million VND/plot to 800 million VND/plot.

According to the reporter's research, Thanh Oai is a suburban district, with an average land price ranging from 25 - 40 million VND/m2, depending on location and amenities. Thus, with the above auction results, the lowest price is still 13.3 - 81.2% higher than the average price. The highest winning price is 2 - 3 times higher.

According to the price history tool of the PropertyGuru Vietnam technology platform, the common selling price of land in Do Dong commune, Thanh Oai district in the third quarter of 2024 is 36 million VND/m2. Over the past year, land prices here have increased by more than 63.6%.

The land sale price in the neighboring communes of Do Dong ranges from 31 million to 41 million VND/m2 in the third quarter of 2024. Accordingly, the auctioned land price in the last session was 1-3 times higher than the common level.

The common selling price in Do Dong commune is about 36 million VND/m2. (Screenshot).

According to a survey, some plots of land with good locations, located on National Highway 1A, 14 km from Hoan Kiem Lake, are only being offered for sale at 70 - 80 million VND/m2. Meanwhile, the location of 25 plots of land auctioned on November 16 in Thanh Oai district is nearly 30 km from the center of Hanoi. The attractive point of these plots of land according to brokers is that they are located near Cienco5 and National Highway 21B.

According to economist Nguyen Tri Hieu, the fact that many plots of land, even though they won the auction at a higher price than the market price, are still advertised at a higher price is a trick of speculators and brokers, who "devalue" the price to create the feeling that the land value has increased significantly. The price of 90 million VND/m2 is the price of the future. Maybe in 5 years when the infrastructure and planning are implemented according to schedule, it will be reasonable.

Therefore, Mr. Hieu believes that it is necessary to increase the deposit in land auctions to filter out speculation and extend the transfer time to avoid "surfing". These things can help people with real housing needs easily access the "clean" land fund of the state with real value.

The Vietnam Association of Realtors (VARS) also pointed out many reasons why auction land prices in some places are unusually high, such as low starting prices, large market demand, and some areas with developed infrastructure, creating great expectations for investors...

In addition, there are also acts of paying high prices and then putting down deposits, even willing to take risks, completing the auction to legalize the winning price with the purpose of inflating prices, creating a virtual price level as a basis for pushing up the prices of related land lots for profit.

Master plan map of the subdivision of auctioned land plots in Van Quan village, Do Dong commune.

Mr. Pham Duc Toan, CEO of EZ Real Estate, shared that currently, the old land price list is still valid but it has almost "lost its use". Therefore, if the authorities do not intervene soon and take drastic action, these land auctions will become "a playground exclusively for brokers". A new profession that can be born is the profession of "land auction".

Sharing the same view, Mr. Nguyen The Diep, member of the Executive Committee of the Vietnam Real Estate Association (VNREA) also affirmed that auctioned land is still a hot and attractive segment in the last months of 2024 and into 2025. In fact, the attractiveness of auctioned land can last until the end of the real estate cycle. Because the supply is increasingly scarce, and it is also the time of high urbanization and high investment demand, it can lead to an explosion.

However, Mr. Diep also noted that “the higher the profit, the greater the risk”. When deciding to bid at the auction, investors should consider factors such as planning, functionality, social infrastructure, technical infrastructure, development potential, etc. of the area. Avoid the prospect of investing capital without being able to withdraw it.

Previously, on August 10, Thanh Oai district held an auction of 68 plots of land in Ngo Ba area, Thanh Than village, Thanh Cao commune. The corner plot with the highest winning price was nearly 100.5 million VND/m2, 8 times higher than the starting price. The regular plots had winning prices from 63 million VND/m2 to 80 million VND/m2, 5 to 6.4 times higher than the starting price.

However, 55 lots were later abandoned, including the highest priced lot of over VND100 million/m2. Of the 13 lots with full payment, the highest priced lot was VND55 million/m2.

Chau Anh

Source