During a long period of stagnation in the real estate market, people's interest in auction land also decreased significantly. However, in the last months of 2023 until now, the auction land market has shown signs of recovery.
Officials from the Provincial Land Fund Development Center inspect the areas preparing for the first land use rights auction in 2024 - Photo: TT
Land use rights auction is a method to help the State mobilize revenue for the budget, create investment capital for infrastructure construction, economic development, and create a basis for real estate market development. At the same time, it also contributes to creating stability, transparency, social justice, and ensuring the interests of the State and land users.
In recent years, land use right auctions have played an important role and always accounted for a relatively large proportion of budget revenue in localities. During the "land fever" in 2021 and early 2022, land use right auctions in localities in the province were bustling, with land lots at auction sites fetching higher prices than the starting price.
However, since the end of 2022, the real estate market has been sluggish, many land use right auctions have been unsuccessful. The winning prices of the land lots are lower than the starting prices, and many lots even have no bidders.
In 2023, with 11 auctions held, the Provincial Land Fund Development Center collected more than 70 billion VND in budget revenue through land use rights auctions, achieving the adjusted target compared to the plan assigned at the beginning of the year of 350 billion VND.
This is also the first time in the past 20 years that the center has failed to meet its revenue plan as assigned by the province and had to request a plan adjustment.
In the context of difficult revenue sources, the Provincial Land Fund Development Center has made efforts to effectively resolve problems related to site clearance, speed up the progress of projects, closely coordinate with the People's Committee of Dong Ha City, relevant units to dialogue, mobilize and propose solutions to handle difficult cases, "bottlenecks" that have lasted for many years related to projects such as: North Hieu River Area Phase 1, Truong Chinh Street, Thanh Co 2 route, GMS project routes... Up to now, some cases have basically agreed on the plan and are expected to be completed in 2024 in accordance with the direction of the Provincial People's Committee.
In 2024, the Provincial Land Fund Development Center is assigned a plan to collect 295 billion VND from the auction of residential land use rights and land allocation with land use fees for compensation and site clearance. In the first land use rights auction held next March, it is expected that about 80 land lots will be put up for auction.
Mr. Phan Dang Hai, Deputy Director of the Provincial Land Fund Development Center, said: “In 2024, the center will synchronously deploy many solutions to achieve the budget revenue target from land use rights auctions. Notably, it has adjusted the subdivision plan, re-dividing large plots of land into plots of moderate size to ensure that the land fund has many segments to meet the diverse needs of the people. Since the end of 2023, the center has adjusted prices, bringing the starting price to the price that most closely reflects the market, the common price under normal conditions, meeting the practical needs of buyers for residence or long-term investment. On the other hand, the unit has also increased promotion and researched through the system of real estate companies to build appropriate prices.”
This time, the center is adjusting the subdivision of some land lots in urban areas expected to be put up for auction such as Bac Song Hieu project phase 1, Dai Co Viet, Nam Dong Ha phase 3, Dong Thanh Co. Along with that is increasing investment in synchronous infrastructure of electricity, water, underground optical cables..., investing in green tree systems, mini parks to create a green, clean, beautiful landscape. The center is also coordinating with a number of departments and branches to submit to the Provincial People's Committee for the policy of auctioning some land lots to build commercial housing, especially in the Bac Song Hieu urban area.
Although the real estate market still faces many difficulties, in areas with clear legal status, complete infrastructure investment, close to central areas, densely populated, and at reasonable prices, land use rights auctions still attract people's attention. In addition, currently, bank deposit interest rates are decreasing, so many people still choose to invest in real estate.
Ms. Nguyen Thi Hai Ly, in Dong Luong Ward, Dong Ha City, said: “I heard about the land use rights auction this March and am very interested because there are many plots of land with starting prices in the segment for young couples with average income like me to access. In the Nam Dong Ha urban area phase 3, with a land area of over 142 m2 with a starting price of over 700 million VND, I hope the increase compared to the floor price is not too high so that I can successfully bid for a plot of land for housing.”
To complete the state budget revenue target from land use right auctions in 2024, the Provincial Land Fund Development Center continues to research solutions in organizing auctions to create fairness, transparency, objectivity and create more favorable conditions for organizations and individuals to participate in auctions. Strengthen innovation in methods and content in advertising suitable products, continue to research and propose land use right auctions for investors and enterprises implementing projects on land plots that have been approved by the Provincial Party Committee and Provincial People's Committee.
Strictly supervise the organization of land use right auctions within its scope to ensure compliance with the law, publicity and transparency. Promptly detect and strictly handle violations of legal regulations in land use right auctions, prevent acts of taking advantage of auctions to disrupt the market and make profits.
In addition, it is important to select auction organizers with good experience and capacity, and the organization and implementation of land use rights auctions must be strict, public, transparent, and in accordance with legal regulations.
Thanh Truc
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