Hung Yen province is about to auction 81 land lots, deposit from only 29 million VND/lot
In the next 3 auctions in Hung Yen, some plots of land have a relatively low total value, starting at only 147 million VND/plot. However, having to go through 5 mandatory auction rounds could cause these plots to increase in price by dozens of times.
On December 15, Sao Mai Joint Stock Auction Company will auction 20 plots of land in residential area No. 6, Tong Phan Commune, Phu Cu District. These plots of land are all "tailor-made" at two area levels of 100 m2 and 110 m2.
The land plots all have the same starting price of 2.4 million VND/m2. Thus, the total initial value of the land plots will be 240 million VND and 264 million VND. The corresponding deposit levels will be 48 million VND and 52 million VND per plot, respectively.
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| Upcoming land auctions in Hung Yen province. Graphics: Thanh Vu |
The auction will be conducted in the form of direct voting with a minimum of 2 rounds and a maximum of 3 rounds. The first round price is 13 million VND/m2. The second and third rounds will be 500,000 VND/m2. The deadline for submitting bidding documents is December 12.
Next, on December 22, Hung Yen province will continue to organize the auction of the right to use 41 plots of land in the new rural residential area of Pham Hong Thai commune (formerly known as Da Trach commune), Khoai Chau district. The area of the plots ranges from 66 to 142 square meters. The starting price is only 3 million VND/m2 and 3.6 million VND/m2.
With the above prices, the land lot with the lowest total value will be about 199 million VND, the highest is 484 million VND. The deposit ranges from 39 - 96 million VND/lot.
Similar to Phu Cu district, the auction in Pham Hong Thai commune will also have a minimum of 2 auction rounds and a maximum of 3 rounds. The price step for the first 2 rounds will be 8 million VND/m2. For the third round, the price step will be 100,000 VND/m2. The deadline for submitting documents is December 19.
In addition to the two sessions mentioned above, Hung Yen province also organized an auction of 20 land lots on December 23. These are plots located in Bao Khe, Quang Chau communes and Minh Khai ward (Hung Yen city). The area of the land lots is quite diverse, from 92 - 378 m2.
Thanks to the low starting price, ranging from 1.5 to 4.4 million VND/m2, the total value of the plots is not too high, averaging around 147 million to 1.1 billion VND. The corresponding deposit is only from 29 to 234 million VND/plot.
The auction will be conducted by direct voting through a minimum of 3 rounds and a maximum of 5 rounds. The price step in the first 3 rounds will range from 2.5 to 7 million VND/m2. The last 2 rounds will have a fixed price step of 1 million VND/m2. The deadline for submitting documents is December 20.
Previously, on November 21, the People's Committee of Yen My district successfully auctioned 50 land lots in Hao Xuyen village, Tan Lap commune. Of which, the land lot with the highest winning price was 110.76 million VND/m2, 20 times higher than the starting price.
Notably, the above auction also has a minimum of 3 rounds and a maximum of 5 rounds. The price step for the first 3 rounds is 10 million VND/m2, and for rounds 4 and 5 it is 5 million VND/m2.
According to the reporter of the Investment Electronic Newspaper - Baodautu.vn, most of the organizing enterprises and participants support the auction having fewer rounds, or even just one round. This will save a lot of time in organizing, limiting the situation of pushing up prices or colluding to lower prices.
The leader of a land auction company said that the current starting price is significantly different from the actual price. Therefore, the local authorities have requested multiple rounds of auctions to bring the winning price closer to the market price, helping to increase the local budget.
“Previously, an auction only needed to be held for 1-2 rounds to determine the winner. It was difficult for participants to judge the bids of other ‘competitors’. At that time, they were forced to offer a suitable price from the beginning. On the other hand, multiple rounds of auctions made participants hesitant, leading to sessions held overnight,” he said.
Currently, Hung Yen is a “star” among the provinces bordering Hanoi. This is not only an area with many large urban areas from large domestic investors but also an attractive investment destination for foreign enterprises. Most recently, the province has had an additional project complex of 5-star hotels, golf courses, and residential areas from the Trump Organization and Hung Yen Hotel Services Joint Stock Company. The total investment capital of the project is expected to be about 1.5 billion USD.
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