Thanh Oai district re-auctioned 57 plots of land, starting price increased to 8.8 million VND/m2

Previously, the unit organizing the first land auction of Thanh Oai district for 57 land plots in Cao Duong commune on August 17, 2024 announced to stop organizing this auction.

The reason for the stop is because the People's Committee of Thanh Oai district re-determines the starting price for auctioning land use rights for 114 plots of land in Cao Duong commune according to Decision No. 46 dated July 18, 2024 of the People's Committee of Hanoi City.

Specifically, on July 18, Hanoi City issued Decision No. 46 on promulgating the land price adjustment coefficient according to the provisions of law as the basis for calculating land use fees when allocating land without auction; collecting land use fees when organizations are recognized for land use rights, changing land use purposes; calculating the value of land use rights when equitizing state-owned enterprises where the joint stock enterprises use land in cases where the State allocates land with land use fees; collecting land use fees when reselling social housing; determining the starting price for auctioning residential land use rights.

Hanoi will still apply the old land price list until the end of 2025 as the basis for land auctions.

According to the previous announcement, 57 plots of land in the Muc Xa hamlet area have a starting price of VND8,097 million/m2; the area ranges from 74.63 - 134.69 m2. With this starting price, the deposit for the plots ranges from nearly VND121 - 218 million.

In the latest announcement of the unit organizing the auction of the right to use 57 land plots in Dam area, Muc Xa village, Cao Duong commune, Thanh Oai district, Hanoi city, it is said that Thanh Oai district will re-organize the first round of auction with 57 land plots with areas from 74.63 - 134.69 m2.

The auction for each plot of land will be conducted by direct secret ballot once. The re-auction is scheduled for 8:30 a.m. on September 8 at Thanh Oai District Gymnasium.

The starting price of the land lots has increased from the old level of 7.3 million VND/m2 to 8.8 million VND/m2, equivalent to 660 million VND to nearly 1.2 billion VND/plot. From the new starting price, customers participating in the land auction must pay a deposit of 20%, equivalent to 131.3 - 237 million VND, depending on the different plots. The latest payment time is 2 days before the auction.

On August 10, Thanh Oai district organized an auction of 68 land lots in Ngo Ba area, Thanh Than village, Thanh Cao commune. This auction caused a stir among real estate investors and the public when the winning price was 7-8 times higher than the starting price. From the starting price of 8.6-12.5 million VND/m2, the highest winning price exceeded 100 million VND/m2.

Many people believe that the reason this auction attracted so many investors was because of the low starting price. With such a starting price, investors only have to deposit 20%, equivalent to about 200 million VND.

Immediately after the auction, many plots of land were resold with a price difference of 300 - 500 million VND/plot. A family won 7 plots of land, of which the highest winning plot of 100.5 million VND/m2 (8 times higher than the starting price) was sold by the broker with a difference of 1 billion VND...

However, after 4-5 days of "inflating prices," also on Hanoi real estate listing sites, speculators reduced the selling price difference compared to the auction price to 90 - 200 million VND/lot of land; in particular, the highest-priced lot had its selling price difference reduced to 150 million VND.

Source: https://baodautu.vn/batdongsan/huyen-thanh-oai-dau-gia-lai-57-thua-dat-gia-khoi-diem-tang-len-thanh-88-trieu-dongm2-d222581.html