Investors are “shocked” when auctioned land in Hung Yen continuously sets new peaks

From 110, to 120 and now 158 million VND/m2. The "lightning-fast" price increase of auctioned land in Hung Yen is making many investors feel confused.

From 110, to 120 and now 158 million VND/m2. The "lightning-fast" price increase of auctioned land in Hung Yen is making many investors feel confused.

Recently, the People's Committee of Khoai Chau district auctioned 41 plots of land in the resettlement area of Dan Tien commune. The plots of land have an area of 74 - 133 m2. The starting price ranges from 25 - 48 million VND/m2.

Notably, all the plots were successfully auctioned with winning prices ranging from 66.8 to 158 million VND/m2. If the total value of the entire plot is calculated, the plot with the lowest winning price is also up to 5.3 billion VND. With the plot with the highest winning price, the total amount that the investor has to pay is 16.3 billion VND.

Investors pay auction tickets for land plots in the resettlement area of Dan Tien commune. Photo: Khoai Chau district electronic information portal

Sharing with reporters of Investment Electronic Newspaper - Baodautu.vn , Mr. Le Tat Nam, Project Director of SGO Property Real Estate JSC, said that Dan Tien commune, Khoai Chau district is not the focus of the real estate market in Hung Yen province. The highest price here is only 130 million VND/m2, instead of up to 158 million VND/m2 as in the recent auction.

“Land prices in Hung Yen province are jumping every day. It is likely that this will be the area leading the Northern real estate market in the new market cycle,” said Mr. Le Tat Nam.

Commenting on the record auction, Mr. Nguyen Duc Thuan, CEO of Pannax Vietnam Investment JSC and also a real estate investor, said that Khoai Chau district is not a "star" in terms of real estate and economic development in Hung Yen province.

“The average income per capita in Khoai Chau district is about 91 million VND/year. In industrial zones, assuming a worker’s salary is 15 million VND/month, a couple would have to go without food or spending for more than 45 years to have enough money to buy a piece of land in the recent auction,” Mr. Nguyen Duc Thuan tried to calculate when comparing with the winning price of 158 million VND/m2.

This investor believes that there are three groups of people who can benefit from the record auctions in Hung Yen province. One is local people, two are investors who have bought land in advance, and three are real estate investors who are or are preparing to sell in the area.

“After auctions like this, those who have real housing needs suffer the most. Next are those with FOMO (fear of missing out) mentality, who jump in when they see prices increase in the hope of making a profit. If they are not alert, they will become ‘prey’ for the ‘sharks’,” Mr. Thuan analyzed.

Previously, Hung Yen province also had auctions exceeding 100 million VND/m2. On February 10, the People's Committee of An Thi district auctioned 273 plots of land in the residential area north of An Thi town. The plots had an area of 90 - 295 m2, with starting prices from 19.2 - 31.2 million VND/m2. As a result, all plots were successfully auctioned. The winning prices ranged from 32 - 120 million VND/m2.

In November 2024, the People's Committee of Yen My district also successfully auctioned 50 plots of land in Hao Xuyen village, Tan Lap commune. The plots of land ranged in area from 88 - 260 m2 and the starting price was only about 3.6 - 5.76 million VND/m2. However, the winning price was up to 45 - 110 million VND/m2.

Source: https://baodautu.vn/batdongsan/nha-dau-tu-soc-khi-dat-dau-gia-hung-yen-lien-tuc-lap-dinh-moi-d251222.html