Increased penalties for using land for the wrong purpose; Auctioned land in Phuc Tho district is highest at 60 million VND/m2

Ha Dong (Hanoi) stopped auctioning 27 land lots; Auctioned land in Phuc Tho district (Hanoi) highest price is 60 million VND/m2; Real estate prices in Ho Chi Minh City will continue to increase in the coming time; Ho Chi Minh City has one more social housing project with 1,500 units.

Here are the real estate highlights of the past week.

Increased penalties for groups of illegal land use

On the afternoon of August 30, Deputy Prime Minister Tran Hong Ha chaired a meeting in person and online to listen to reports and give opinions on the content of the Draft Decree regulating administrative sanctions for violations in the land sector with the participation of ministries, branches, localities, associations, experts, etc.

Deputy Prime Minister Tran Hong Ha directed at the meeting. Photo: VGP

According to the report of the Ministry of Natural Resources and Environment (the drafting agency), the Draft Decree has increased the level of penalties, added penalties and remedial measures for the group of acts of using land for the wrong purpose; destroying land; encroaching on land, occupying land; not continuously using land for growing annual and perennial crops, aquaculture, afforestation; not complying with the regulations on transferring land use rights and leasing land according to the 2024 Land Law...

Deputy Inspector General of the Government Le Sy Bay commented that violations and violations of land are taking place very complicatedly and the current punishment for these violations is not commensurate. Therefore, the development and early promulgation of the Decree is extremely necessary with the requirement that there must be sanctions strong enough to deter violations of land.

Concluding the meeting, the Deputy Prime Minister emphasized that the Decree must closely follow the principles and regulations prescribed by the Land Law and the Law on Handling of Administrative Violations, ensuring coverage and not omitting any violations or related subjects.

Ha Dong (Hanoi) stops auctioning 27 land lots

On August 27, National Joint Stock Auction Company No. 5 announced that it would temporarily suspend the auction of land use rights for 27 plots of land in Phu Luong, Yen Nghia and Duong Noi wards (Ha Dong district, Hanoi).

Specifically, these are land plots located in Ha Khau copper area, Dong Danh - Dong Coc area, Dong Bo - Dong Chuc - Cua Cau - Dong Men area (Phu Luong ward); Sau Chua area (Yen Nghia ward) and Duoc area (Duong Noi ward).

Map of the auctioned land in Sau Chua (Yen Nghia ward). Photo: Provided by the investor

The company said that the auction suspension was made at the request of the Ha Dong District Construction Investment Project Management Board. The auction will be reorganized immediately after the company receives the decision from the authorities.

Previously, Joint Stock Auction Company No. 5 - National had coordinated with the Management Board of Investment and Construction Projects of Ha Dong District to organize the auction of 27 land plots in 3 wards, including Phu Luong, Yen Nghia and Duong Noi. The auctioned land plots have an area of 48 - 72 m2, starting price from 22 - 32 million VND/m2, deposit from 221 - 436 million VND/plot.

The auction was originally scheduled to take place on September 7, 2024. However, this date has been canceled. The organizers have not yet announced a date for the re-auction.

According to a source from Dau Tu Newspaper, investors have a more "favorable" view of the real estate market in Ha Dong district when compared to Hoai Duc or Thanh Oai districts. The land price level and auctioned land in this locality is also higher than in the two suburban districts above. Therefore, the milestone of 100 million VND/m2 in the upcoming auction in Ha Dong is completely possible.

Land auction in Phuc Tho district (Hanoi) highest price 60 million VND per square meter

On the morning of August 29, the Land Fund Development Center of Phuc Tho district (Hanoi) organized an auction of land use rights for 30 plots of land in Doc Tranh area, Trach My Loc commune and 9 plots of land in Dong Phuong area, Tho Loc commune (Phuc Tho, Hanoi).

Accordingly, each plot of land in Doc Tranh area, Trach My Loc commune has an area ranging from 96 to nearly 149 square meters. The starting price is 23.4 million VND/square meter, equivalent to the deposit that auction participants must pay from 450 - 700 million VND/plot.

9 plots of land in Dong Phuong area, Tho Loc commune have a relatively large area of nearly 235m2. The starting price of these plots is 19.8 million VND/m2, equivalent to a deposit of nearly 535 million VND/plot.

According to a representative of the Land Fund Development Center of Phuc Tho district, the district received a total of 650 valid registration dossiers to participate in the auction and more than 350 people came to participate in the live auction.

At the end of the session, all 39 lots were successfully auctioned. The highest lot won at 60 million VND/m2, 2.6 times higher than the starting price. In addition, many lots won at 48.8 - 51.8 million VND/m2.

While the auction was still taking place, many land auction groups were offering to transfer the winning plot of land at a price difference of about 400 million VND, depending on the location and interest of the investor.

The 35,000 billion VND urban area in Dong Anh (Hanoi) needs to find more investors.

Previously, on May 15, the Hanoi Department of Planning and Investment posted information, inviting interested investors to submit online applications for investment projects using land for smart-ecological urban areas in Tam Xa, Vinh Ngoc, Xuan Canh communes, Dong Anh district.

However, by the deadline for submitting documents, which is June 28, the Department has only recorded one investor submitting a project registration application. This is the reason why the Hanoi People's Committee had to issue Document No. 2711/UBND-DT on extending the project registration period. Accordingly, the deadline for submitting documents will be extended to 5:00 p.m., September 12.

Currently, the unit is "alone" in the search for an investor, a consortium of Vingroup Corporation - Long Hai Investment and Trade Development JSC, Thai Son Construction Investment JSC. This unit has met the preliminary requirements on capacity and experience for investors registering to implement the project.

According to approval, the smart - ecological urban area in Dong Anh has a total land use research area of about 268 hectares. The project is expected to provide the market with about 12,833 houses, including 427 villas; 1,211 townhouses; 7,769 commercial apartments; 3,426 social housing apartments. The population size in the urban area is about 38,500 people.

The preliminary total cost of project implementation (excluding compensation, support, resettlement, land use fees, land rent) is about 33,093 billion VND. Compensation, support, and resettlement costs are about 2,090 billion VND.

The project's operational period is 50 years. The implementation progress is expected to last from 2023 to 2031.

Real estate prices in Ho Chi Minh City will continue to increase in the coming time.

Since the beginning of the year, the price of new apartments in Ho Chi Minh City has continuously reached new peaks. One of the rare projects that has been opened for sale during this period is Eaton Park on Mai Chi Tho Street (Thu Duc City), invested by Gamuda Land Group.

The project was first offered to the market at a price of VND130 million/m2, which, if taxes and fees are included, will increase to VND146 - 155 million/m2. Although the price is higher than the average price in the area, the first sale recorded an absorption rate of nearly 90% of the product basket.

Similarly, at the Metropole Thu Thiem Project, if phase I is offered for sale by the investor at a price of about 160 million VND/m2, phase II is offered for sale at a price of 250 million VND/m2.

In a recent report, the Ministry of Construction recorded an average increase of 5-6.5% in apartment prices in the second quarter of 2024 and an increase of 25% compared to the same period last year. Apartment prices increased not only in newly opened projects, but also in many old apartments that have been used for many years.

Projects with strong secondary price increases in Ho Chi Minh City include the City Garden apartment project (Binh Thanh District) with an average sale price of VND85 million/m2, an increase of 18% compared to the same period last year; the Antonia project (District 7) and Masteri Thao Dien (Thu Duc City) increased by 11% and 10% respectively. The Ministry of Construction also believes that apartment prices in Ho Chi Minh City may continue to increase in the coming time due to the scarcity of new projects on the market.

Some neighboring localities have also recorded steady price increases since the beginning of the year. In Binh Duong, if 2 years ago, the announced price only fluctuated around 20 - 30 million VND/m2, recently it has increased to 45 - 50 million VND/m2.

For example, the Sycamore apartment project in Binh Duong New City, invested by Capital Land, has an expected average price of about 50 million VND/m2. Or the Uni Complex apartment project in Thu Dau Mot City, invested by TDC Company, although not officially announced, the price is also expected to be around this level.

In addition to the two projects above, previously announced projects such as Phu Dong Sky One; Phase II, Astral City project; Picity Sky Park... all have an average price of 35 - 45 million VND/m2.

Ho Chi Minh City has another social housing project of 1,500 apartments.

On August 29, Le Thanh Construction Trading Company Limited held a groundbreaking ceremony for the Le Thanh Tan Kien social housing project. The project is located on Nguyen Cuu Phu Street, Tan Kien Commune, Binh Chanh District.

Perspective of Le Thanh Tan Kien social housing project.

This social housing area includes 4 18-storey apartment buildings and 2 commercial service buildings. The total number of apartments that this project provides to the market is 1,445. Most of them are 1-2 bedroom apartments with an area of 45-50m2.

Notably, the apartments in the project are all leased for 49 years, meaning the buyer will pay a down payment and then pay in installments over 100 months.

Before the groundbreaking ceremony, the project took 5 years to complete the legal procedures. This social housing area is expected to be completed by 2026.

According to Mr. Pham Minh Man, Deputy Director of the Ho Chi Minh City Department of Construction, by 2030, the city will invest in building 69,700 - 93,000 social housing units. Currently, the city has 4 projects under implementation, the Le Thanh Tan Kien project is the 5th project, after 4 completed projects.

Source: https://baodautu.vn/batdongsan/tang-muc-xu-phat-voi-hanh-vi-su-dung-dat-sai-muc-dich-dat-dau-gia-huyen-phuc-tho-cao-nhat-60-trieu-dongm2-d223804.html