(CLO) Some real estate investors believe that land auctions will still be "hot" in 2025, but investors may offer more restrained prices than before.
Many suburban districts of Hanoi plan to hold a series of land auctions.
The Hanoi People's Committee has just issued a decision to hand over more than 20,000 square meters of land in Van Dinh town, Ung Hoa district to the Ung Hoa district People's Committee to implement the project to invest in building technical infrastructure for the land use rights auction area.
According to the Hanoi People's Committee, of the total 20,671 m2 of land allocated, there are 6,028.9 m2 of residential land for land use rights auction, the remaining 14,642.2 m2 of land for traffic and greenery.
The Hanoi People's Committee assigned the Ung Hoa District People's Committee to contact the Department of Natural Resources and Environment to determine the amount of money to be paid and carry out land handover procedures on site according to regulations. At the same time, organize the construction of technical infrastructure according to the approved investment project to ensure synchronous connection of technical infrastructure and regional infrastructure.
Many suburban districts of Hanoi plan to hold a series of land auctions in 2025. (Photo: CP)
In addition, Ung Hoa District People's Committee shall establish a plan for auctioning land use rights and organize the auction according to regulations.
Not long before, the Hanoi People's Committee issued Decision 144 approving the 2025 land use plan of Hoai Duc district. In this Decision, Hoai Duc district plans to organize auctions of land use rights in 11 projects.
For example, at Area X1, Van Canh commune; location X1 of Khom Dau and Dong Coc areas in Son Dong commune; or area X2 Dong Sanh in Kim Chung commune; location X2 of An Thuong commune;....
In addition to Ung Hoa and Hoai Duc, another district of Hanoi, Thanh Oai district, is expected to hold many land auctions in 2025. Thanh Oai district is also the locality assigned the most land for auction.
In Decision 136 approving the 2025 land use plan of Thanh Oai district, this district has 29 projects auctioning land use rights.
For example, in Kim Bai town, there is a project to build technical infrastructure to auction land use rights for plots 02.1 and 02.2 in Dia Dam field (Cat Dong village); to build houses for sale at the land use rights auction area K3.
In Tam Hung commune, there is a project to build technical infrastructure for auctioning land use rights in Xim Duoi area; Cung Trong area (Dai Dinh village). In Dan Hoa commune, there is a project to build technical infrastructure for auctioning land use rights in Dia Tram Xac area; Dong Dau area (The Hien village).
In Do Dong commune, there is a project to build technical infrastructure to auction land use rights in Man Ca, Man Cong, Ma Man Trong areas (Van Quan village); Dien Thanh area (Cu Than village).
Will auctioned land still be "hot" in 2025?
2024 is considered the year of "explosion" of land auctions in suburban districts of Hanoi. Most of the land prices at auctions are pushed up very high. In many cases, "inflated" prices are then canceled.
However, after Hanoi police initiated a case and prosecuted five land auctioneers in Soc Son for violating regulations on property auction activities, the auctions seemed to be much less enthusiastic.
Mr. Hoang Ha, a real estate investor, commented: After the land auction in Soc Son, recent land auctions are still “hot” but “less enthusiastic” than before. The auction prices in many sessions are still high but less “unrealistic”.
2024 is considered the year of "explosion" of land auctions in suburban districts of Hanoi. Most of the land prices at auctions are pushed up very high. (Photo: ST)
For example, at the auction of 26 land plots in Tan Phu commune, Quoc Oai district held in early January, the highest winning price was nearly 77 million VND/m2.
Previously in November, Quoc Oai district organized an auction of 20 plots of land also in Tan Phu commune. The results showed that, among the 20 plots of land put up for auction, the plot with the highest winning price was 94.7 million VND/m2. Thus, the auction results in January were far worse than the previous 2 months.
“Land auctions will still be hot in 2025, but investors may offer more restrained prices than before,” Mr. Ha said.
Meanwhile, Associate Professor Dr. Dinh Trong Thinh warned that investors need to be extremely cautious before spending money to buy land at this time, and must research carefully to avoid falling into the "virtual fever" trap. The Hanoi real estate market, with its dense population and supply not meeting demand, easily attracts speculators in auctions. Therefore, it is not impossible that in many land auctions, investors colluding to push up prices to increase the value of neighboring land for profit.
To stabilize the auction land market, according to experts, the State needs to control starting prices and ensure a more transparent auction mechanism, limiting the situation of land brokers pushing up prices, causing market disruption.
Mr. Nguyen Quoc Hiep, Chairman of the Vietnam Association of Construction Contractors, also said that to prevent speculation in land auctions, it is necessary to increase the starting price and deposit rate in auctions, determine the starting price close to the market price, limit transfers within 5 years and require construction within 2-3 years, and shorten the time to pay money after winning the auction.
Source: https://www.congluan.vn/ngoai-thanh-ha-noi-chuan-bi-o-at-to-chuc-dau-gia-dat-lieu-co-con-hot-post330836.html
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