(Dan Tri) - Recent land auctions on the outskirts of Hanoi have seen fewer participants and lower winning prices than before. However, experts say that land auctions have not cooled down because winning prices are still higher than the market.
The number of participants and the winning price of the auction land were lower.
The Land Fund Development Center of Phuc Tho District (Hanoi) has just organized an auction of 12 land plots in this district. Of which, 7 land plots in Doc Tranh area (Trach My Loc commune) have a starting price of 23.4 million VND/m2. 4 land plots in Huong Nam area (Xuan Dinh commune) have a starting price of 25 million VND/m2 and one land plot in Cong Cho area (Tich Giang commune) has a starting price of 16.5 million VND/m2.
However, compared to the auction 2 months ago, the number of participants has decreased sharply with only 32 investors registering with more than 120 applications. Previously, the auction on September 17 in Phuc Tho had more than 100 customers attending.
The decrease in investor interest also caused the auction price to drop. All 7 plots of land in Doc Tranh area were successfully sold, but the highest winning price was only 37.6 million VND/m2. The lowest winning price in this area was 28.8 million VND/m2, about 20% higher than the starting price.
Meanwhile, also at Doc Tranh land, in the mid-September auction, the highest winning plot was up to 75 million VND/m2, double the auction that just took place.
In November, many land auctions in the suburbs of Hanoi took place, but the winning prices were much lower than previous auctions. Specifically, on November 4 and 11, Hoai Duc district held 2 auctions with a total of 52 land lots. The land lot with the highest winning price of these 2 auctions was 109.3 million VND/m2, while the land lot with the lowest winning price was 79.3 million VND/m2.
The land auction in Hoai Duc district on November 4 and 11 had fewer participants (Photo: Duong Tam).
Notably, according to Dan Tri reporters, the number of participants in both recent auctions in Hoai Duc district has decreased sharply. For example, the auction of 32 land lots in this district on November 11 had 700 applications from more than 100 customers. Meanwhile, the auction of 19 land lots in Hoai Duc on August 19 had 400 customers participating, with the highest winning price reaching 133.3 million VND/m2.
Or the auction of 25 land lots in Thanh Oai district (Hanoi) that took place on November 16, the highest winning price reached 90.3 million VND/m2. The number of applications participating in this auction was only 400 applications from 111 customers. Meanwhile, the auction on August 10 in this district had 4,600 applications from 1,545 participants, the highest winning price was over 100 million VND/m2.
Expert: Land auctions have not cooled down, because the winning price is still higher than the market price
Talking to Dan Tri reporter, Mr. Le Dinh Chung - real estate expert - said that currently, the Hanoi real estate market is mostly focused on the high-end apartment segment, low-rise housing products are also very few. As for land supply, there is only a small amount from auctions and from people dividing plots for sale. Meanwhile, the taste of real estate investors is still very fond of land.
The starting price of the auctioned land is still based on the old land price list, so it is very low, resulting in low deposits. Therefore, investors are still quite interested in auctioned land and are willing to pay a small deposit to participate.
However, Mr. Chung said that although the winning price and the number of applications participating in auctions in the suburbs of Hanoi have recently decreased, the winning price is still higher than the market in the area. Therefore, he assessed that the auction land has not cooled down.
The land auction in Thanh Oai district on August 10 had 4,600 participating applications (Photo: Duong Tam).
"In addition to those who attend the auctions with real needs, there are still speculators participating in price manipulation and profiteering from surfing. However, in the auction in Thanh Oai district in August, up to 80% of them abandoned their deposits. Along with the intervention of the authorities, it has helped reduce the number of speculators participating to create a virtual fever. Therefore, recent auctions have been purged of groups, so the dossiers and winning prices have been calmer," said Mr. Chung.
Mr. Pham Duc Toan, a real estate expert, said that the winning price of land auctioned in the suburbs in August-September was inflated too high, and then the deposit was waived. In recent auctions, many people with real needs or investments have realized that participating in auctions is ineffective. Those who participated with the purpose of quick transfer were not able to sell.
This has resulted in fewer bidders and softer winning bids in recent auctions. However, the winning bids are still higher than the surrounding market.
"Some investors are no longer interested in paying too high a price to buy a plot of land and then sell it for a profit. They all see that the current price is too unrealistic. If they cannot find a buyer within a month, they will have to forfeit their deposit. The lesson from the Thanh Oai district land auction last August has affected investors' psychology. So they have become more cautious," he shared.
Source: https://dantri.com.vn/bat-dong-san/it-nguoi-quan-tam-hon-dat-nen-dau-gia-tai-ha-noi-da-ha-nhiet-20241119022919803.htm
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