Notably, in the authorization of the Hanoi People's Committee to the district-level People's Committees, there is the decision on the starting price for auctioning land use rights to allocate land with land use fees or lease land to households and individuals; Decision on the starting price for auctioning land use rights when the State allocates land or leases land in cases where the land plot or land area has been invested in technical infrastructure according to the detailed construction plan.
Trading is active but not hot
According to the Hanoi People's Committee, the district-level People's Committees are responsible for completing the specific Land Valuation Council and other related contents (if any), directing the Departments of Natural Resources and Environment (TNMT), Finance - Planning and related departments and offices to organize the implementation. Before December 10, 2024, the Department of Natural Resources and Environment together with departments, branches, and district-level People's Committees will summarize and evaluate the results, report to the City People's Committee for consideration of continued authorization as a basis for implementation for the next period.
For Hanoi, land is always a hot issue. Not only apartment prices, land prices in the inner city are constantly increasing, but suburban land transactions are also very active. Since April 2024, land auctions for households and individuals from districts such as Dong Anh, Hoai Duc, Ung Hoa, Phu Xuyen... to the remote area of Ba Vi have also been quite bustling.
In Hoai Duc district, the District Land Fund Development Center successfully auctioned 23 plots of land with an area of 2,441.8 square meters (held on March 18); the budget collected 179.2 billion VND. In April, the Center continued to announce the auction of land use rights for 34 plots with an area of 3,366.7 square meters; expected to collect 200 billion VND for the budget.
Similarly, in Dong Anh district, in February and March, the auction of land use rights was successfully organized with a total area of 2,872.2 square meters; the budget revenue was over 143 billion VND, exceeding the expected by nearly 69 billion VND.
Ba Vi is a remote district of Hanoi, which has also successfully auctioned 37 plots of land (Dong Bang village, Dong Thai commune); earning the budget more than 99 billion VND.
According to Mr. Nguyen Huy Hoang - Director of Hoai Duc District Land Fund Center, the reason for the rapid increase in land transactions and prices is that the city and locality are speeding up the implementation of many key transport infrastructure projects; including Ring Road 4 - Capital Region and Ring Road 3.5. Connection to the inner city is more convenient.
However, by May 2025, land auctions in suburban districts were not unusual. For example, in Hoai Duc district, compared to some central districts, the starting price was over 60 million VND/m2, compared to over 100 million VND/m2 commonly in the inner city. There was a plot of land with a starting price of 42.8 million VND/m2, but the auction winner only increased the price by 1 step to 42.9 million VND/m2; proving that although the land auction was favorable, it was not "hot"; there was no phenomenon of unusual price increases, speculation or price inflation compared to previous land fevers when prices increased 2-3 times compared to the starting price.
After the auction, the rate of deposit cancellation and non-payment is high. Specifically, in 2022 and 2023, up to 70% of suburban land auctions had no participants or the number of participants was not qualified to open the auction.
Regarding land auctions, not many people are clear about it. For example, in a case in Me Linh district, in the auction on the afternoon of December 30, 2023, a person paid 4.28 billion VND/m2 for a 102m2 plot of land; while the starting price was 30 million VND/m2 and became the auction winner. However, later, at the request of the auction winner, Me Linh district agreed to cancel the result and return more than 600 million VND in deposit.
This person said that it was the first time he went to auction for land use rights, so he was nervous and rushed, so he made a mistake. "I calculated more than 4.28 billion VND for the whole plot of land, not thinking that the auction regulations were calculated per square meter, so I made a mistake," said this person.
The above case should also be considered a lesson in participating in land use rights auctions, especially when the Hanoi People's Committee has authorized the district-level People's Committee to decide the starting price for land use rights auctions.
Hanoi will organize many auctions of land use rights.
Many opinions say that the Hanoi People's Committee's authorization of the district-level People's Committees to decide the starting price for land use rights auctions will make the real estate market more vibrant and healthy. The starting point can be said to be from next June. Especially when the auctioned land has been planned, invested in synchronous technical and social infrastructure systems, connected to main traffic axes, meeting the needs of forming new modern residential areas.
According to the Hanoi People's Committee, this year, the city was assigned 408,547 billion VND in estimated state budget revenue; of which, domestic revenue is 378,530 billion VND. Identifying land revenue as the main investment resource of districts, towns and cities; the Hanoi People's Committee requested the Department of Finance and the Department of Natural Resources and Environment to preside over and coordinate with units to synthesize data related to the bidding and auction capacity of 30 districts, towns and cities from land revenue.
With these positive moves, auctioned land is considered the leading product in Hanoi's land market in 2024.
The auction addresses for land use are quite clear. Of which, nearly 180 plots of land in Chuong My, Dong Anh, Me Linh districts and Son Tay town were put up for auction for land use rights with the highest starting price of 33 million VND/m2. In an auction in March 2024, the highest winning price was 56.1 million VND/m2.
In Me Linh district, including 30 plots of land: Quan Cho area (Bong Mac village, Lien Mac commune) starting price 19-22.5 million VND/m2. In Quang Minh town, starting price is from 26-27 million VND/m2.
In Dong Anh district, 72 plots of land were also put up for auction for land use rights, with starting prices ranging from 23.5 to 24.5 million VND/m2. In some places, the starting prices ranged from 28 to 33 million VND/m2.
In Phuc Tho district, 14 plots of land were auctioned for land use rights, with starting prices of 17.2 million VND/m2 and 18.5 million VND/m2...
Bring new policies into life soon
For a long time, land prices have always received the attention of the whole society. The Government and the National Assembly are also very close to this issue.
On May 24, 2024, chairing a national online meeting to listen to reports and give opinions on the draft Decree regulating land prices, Deputy Prime Minister Tran Hong Ha requested the Ministry of Natural Resources and Environment to seriously absorb comments and contributions throughout the development process, promptly complete the draft Decree, and promptly put new and breakthrough policies and guidelines in the 2024 Land Law into practice.
Previously, on May 8, at a direct and online conference with 63 localities to collect opinions on the draft Decree regulating compensation, support, and resettlement when the State recovers land; the draft Decree regulating land prices; Deputy Prime Minister Tran Hong Ha said that the Prime Minister has issued a document directing ministries and branches to urgently develop detailed guidance documents, ensuring sufficient conditions for the National Assembly to consider and allow the 2024 Land Law to take effect on July 1, 2024 (5 months earlier than before, which was January 1, 2025).
The 2024 Land Law with many new and breakthrough policies; people benefit in the development process, harmonizing the interests of all parties when implementing projects. Regulations on land prices ensure the principles of objectivity, transparency, and regulation of land revenue for the State, people, and businesses, preventing land prices from fluctuating "hotly", and balancing input costs for investment projects in socio-economic development. The new method of land valuation must be clear, simple, and coherent to protect those doing valuation work.
Returning to the Hanoi People's Committee's authorization of the district-level People's Committees to decide on land prices and starting prices for land use rights auctions, it further shows that this work needs to be carried out in a transparent manner but must be closely monitored. In fact, over the years, corruption and economic crimes in the land sector have been widespread. Complaints in this field also account for the highest proportion of complaints, while handling and resolving them takes a lot of time. Due to the complexity of the problem, many cases are difficult to resolve thoroughly.
On September 13, 2022, the report of the Petition Committee at the thematic supervision session of the National Assembly Standing Committee "Implementation of the law on receiving citizens and handling complaints and denunciations from July 1, 2016 to July 1, 2021" showed that complaints, denunciations, recommendations and reflections mainly arose related to the field of land management and the implementation of land recovery, compensation, support, resettlement and site clearance when implementing projects (accounting for over 69.5%).
According to Mr. Le Bao Long - a real estate expert, the Government's regulation of the land price list implemented by the Provincial People's Committee is different from before, which is to refer to the land price framework and be updated annually. Thus, the authority and responsibility have been delegated to localities, helping land prices to be oriented closer to the actual situation of each locality than before. Specific regulations will help land valuation to be transparent, clear, and close to reality. Mr. Long predicts that real estate prices will increase after the new laws come into effect. Accordingly, land plots will be the type most affected. However, even if there is an increase, there will not be an unreasonably high price increase.
Source: https://daidoanket.vn/minh-bach-trong-gia-dat-dau-gia-dat-10280937.html
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