How is the land price in Hoai Duc district before the auction of 52 lots?

(Dan Tri) - Currently, land prices in Hoai Duc district (Hanoi) have increased sharply compared to the time when the real estate market was sluggish.

Land prices in Hoai Duc district have increased sharply.

On November 4 and 11, Hoai Duc district (Hanoi) will auction 52 plots of land in Long Khuc field, Tien Yen commune. The plots of land to be auctioned range in area from 89m2 to 172m2/plot, with starting price of 7.3 million VND/m2.

The deposit to participate in the auction of the 52 lots above ranges from 130 million VND to nearly 252 million VND/lot. Both auctions are conducted using the multi-round direct voting method.

The location of these 52 plots of land is right next to 19 plots of land that were auctioned in Hoai Duc district on August 19. The land auction held in August by Hoai Duc district lasted 19 hours, the highest winning plot of land was 133 million VND/m2, 18 times higher than the starting price.

According to a survey by Dan Tri reporters, land prices in Tien Yen commune range from 55 million VND to 70 million VND/m2 for plots of land located on 4m wide alleys. Plots of land on large roads that can be used for business range from 75 million VND/m2 to 95 million VND/m2.

For example, a plot of land in Tien Yen commune with an area of ​​46.4 square meters is being offered for sale at a price of more than 3 billion VND, equivalent to 66 million VND/square meter. According to the seller, the road in front of the plot of land is 4 meters wide.

In neighboring communes such as Son Dong, Song Phuong, Dac So, Lai Yen, plots of land located in alleys where cars can move are priced from 55 million VND/m2 to 75 million VND/m2. For plots of land located on main business roads, prices range from 80 million VND/m2 to 120 million VND/m2.

Overview of the auctioned land in Hoai Duc district (Photo: Duong Tam).

At the Son Dong Center project (Son Dong commune, Hoai Duc), the prices of shophouses are being offered for sale from 150 million VND/m2 to nearly 230 million VND/m2. A 79.5m2 shophouse with 4 floors built at this project located on a 40m wide road is being offered for sale at 18 billion VND, equivalent to 226 million VND/m2.

At the Vuon Cam Urban Area project (Van Canh commune, Hoai Duc), the price of land for villa construction ranges from 80 million VND to 100 million VND/m2 (excluding construction costs). A plot of land for building a single villa with an area of ​​240m2 is being sold for 24 billion VND, equivalent to 100 million VND/m2.

According to data from a market research unit, compared to the first quarter of 2023 - when the real estate market was sluggish, land prices in Hoai Duc district have increased by 81%, from the average market price of 55 million VND/m2 to 100 million VND/m2.

Mr. Nguyen Quy, a real estate broker in Hoai Duc district, said that before the auction in August in Hoai Duc district, land prices had increased by about 20% compared to the beginning of the year. After the auction ended, surrounding land prices continued to increase slightly. However, since then, land prices and transactions here have slowed down.

"Land prices in some areas of Hoai Duc district have increased. Therefore, investors continue to wait and see and have not invested yet. Some people who invested about 2 years ago are now tending to take profits and wait for more signals from the market," he said.

Expert: Need to be tough on cases of winning auctions but "transferring" immediately

Ms. Pham Thi Mien, Deputy Director of the Vietnam Real Estate Market Research and Evaluation Institute, said that recently, the land auction story is "hotter" than ever with auctions held overnight, recording hundreds, even thousands of people waiting to compete for a spot. The winning price of the auctions is also a record high, equal to project land with well-invested infrastructure.

Many brokers advertised the sale of land lots at the auction on August 19 in Hoai Duc district (Photo: Duong Tam).

Assessing the recent land auctions, Dr. Nguyen Van Dinh, Chairman of the Vietnam Association of Realtors (VARS), said that land prices at auctions continue to increase due to the high demand for real estate. In addition, investors need products with legal guarantees and clear growth potential such as auctioned land.

In fact, in areas such as Hoai Duc or Ha Dong, the potential for urban development along with infrastructure development creates great expectations for investors. Many investors are willing to pay high prices to own these limited-quantity products, even though the price may far exceed the actual value of the land.

Additionally, with the expectation that land will continue to appreciate in value in the future, buyers may accept prices much higher than the usual valuation.

According to him, another important reason for the high winning bid price is the act of paying a higher price and then giving up the deposit. Some people are even willing to take risks, fulfill their obligations in the auction to legalize the winning price with the purpose of "inflating the price", creating a "virtual" price level as a basis to push up the price of related plots of land for profit.

To ensure that the auction process minimizes speculation and price inflation, Mr. Dinh said that auction organizers need to closely review and ensure that all auction processes and procedures comply with current legal regulations.

In addition, State management agencies need to closely monitor every move of the auctions to take timely corrective measures when detecting signs of "instability". In addition, the State also needs to take stronger measures against cases of winning the auction but "changing hands" in a short period of time.

Source: https://dantri.com.vn/bat-dong-san/gia-dat-huyen-hoai-duc-ra-sao-truoc-them-dau-gia-52-lo-20241102164545578.htm