8 months, auction results only reached 5.42%
Mr. Nguyen Huy Hoang, Director of the Hoai Duc District Land Fund Development Center, Hanoi, said that the Hoai Duc land auction plan in the first 6 months of the year did not meet the target. Some land plots were put up for auction and announced 3 times but no investors participated, so they had to be canceled. The main reason is that the real estate market has cooled down. Meanwhile, the starting price was announced at the end of 2022, based on the winning bid of the previous auction, when the market was still active, so it is no longer suitable for the market. Although the locality wants to lower the starting price, there are no specific regulations for implementation.
"The starting price does not attract investors' interest as well as customers' demand. If it is reduced, the price must be re-determined from the beginning, but the basis for determining the reduction is very difficult. When we organize it once, twice, three times without investors participating, there is no regulation on how much the reduction is, it is very difficult to determine the starting price" - Mr. Hoang said,
In Dong Anh district, Hanoi, the district has also recently suspended land auctions before the session in Van Ha and Lien Ha communes. In other districts such as Long Bien, Gia Lam, Dan Phuong, etc., many auctions have also been canceled.
Hanoi People's Committee said that since the beginning of 2023, the auction of land use rights in localities has encountered difficulties, and the collection of land use rights auction fees has been lower than planned. The city has organized 65 land use rights auctions with 37 successful auctions and 28 unsuccessful auctions. The result of land use rights auction fees is 724 billion VND, reaching 5.42% of the annual plan.
Continue to hold auction
Despite the gloomy real estate market situation, according to the plan in September, Me Linh district will conduct the second auction of Dong Truoc Area, Lien Mac Commune with an area of 7.5 hectares. Of which, the auction area is 1.8 hectares, traffic land is 4.0 hectares, land fund for housing construction in the project is 7,200 square meters... In October 2023, continue to auction Point X2, Residential Group No. 4, Quang Minh Town with an area of 0.9 hectares. Of which, the auction area is 0.4 hectares, traffic land is 0.3 hectares, the remaining is green land.
In November 2023, auction Point X1, Gan Village, Tam Dong Commune with a total area of 3.4 hectares. Of which, the auction area is 0.8 hectares, social housing land is more than 2,000 square meters, traffic, irrigation and green land area is 1.3 hectares. In December 2023, auction will be held at Chu Tran Hamlet, Tien Thinh Commune (adjacent to Tien Thinh Commune headquarters and Provincial Road 308) with a total area of 7.3 hectares. Of which, the auction area is 1.6 hectares, traffic land is 3.3 hectares, the remaining green land area is nearly 6,000 square meters.
On September 15, the Land Fund Development Center of My Duc district (Hanoi) will auction dozens of land lots in An Tien commune, with starting prices of 5-5.5 million VND/m2.
In Soc Son district, on the afternoon of September 16, Joint Stock Auction Company No. 5 - National in coordination with the Soc Son District Land Fund Development Center will also organize an auction of the right to use 28 land plots in Tan Thai village, Hien Ninh commune.
These are residential plots with stable and long-term use. The plots have an area of 95 - 194.4m2. Starting price is from 7.4 million VND to 13.4 million VND/m2.
In Dong Anh district, on the morning of September 16, Lac Viet Joint Stock Auction Company in collaboration with Dong Anh District Land Fund Development Center will organize an auction of the right to use 11 plots of land, which are assets of Dong Anh District People's Committee. 11 plots of land auctioned in Dong village, Tam Xa commune, Dong Anh district. The area of the plots ranges from over 75m2 to over 144m2. Starting price is from 43 - 50 million VND/m2.
Similarly, in Phuc Tho district, on the morning of September 18, Lac Viet Joint Stock Auction Company will also organize an auction of the right to use 20 land plots, which are assets of the Phuc Tho District Land Fund Development Center.
Of which, 15 plots of land belong to TT2 and TT3 in Dong Cau Loc area, Ngoc Tao commune and 5 plots of land in Ma May area, Phung Thuong commune, Phuc Tho district. The area of the plots ranges from over 128m2 to 306.5m2. The starting price is from 17 - 22.3 million VND/m2, equivalent to over 2.3 billion VND to nearly 5.8 billion VND/plot.
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