Handle it seriously, bring back trust

The recent land auction manipulation in Soc Son district (Hanoi) if not controlled will be a major obstacle to the real estate market.

In recent days, the land auction manipulation case in Soc Son district (Hanoi) has shocked public opinion. The group involved set up a manipulation system with the aim of pushing up land prices unreasonably, then arranged to gain an advantage in the following auctions.

According to the initial investigation, after knowing the auction time, this group set up a reference price list for each plot of land, ranging from 20-32 million VND/m2, equivalent to 1.7-3.9 billion VND per plot. During the auction, if the price exceeded the estimate, the group would intentionally collude to push the price up in the 5th round and then abandon the auction in the final round, causing the auction to be canceled. As a result, the auctions had to be reorganized, creating an opportunity for this group to gradually eliminate other bidders and take over the land at the predetermined price.

5 subjects in the auction of 30 billion VND/m2 of land in Soc Son, Hanoi at the police station. Photo: CACC

Immediately after discovery, the authorities quickly intervened, bringing the fraudsters to light, in order to protect the transparency of the real estate market. It can be seen that if this case is not handled promptly, the consequences will be very serious, not only causing loss of state budget but also eroding investor confidence, causing market disorder.

In fact, the above phenomenon is not new in Vietnam, similar "manipulation" tricks were also recorded in Thanh Oai district (Hanoi) last August, when 68 plots of land in Thanh Than village, Thanh Cao commune were put up for auction. The event attracted 1,500 participants with 4,200 applications, pushing the highest winning price up to 103.3 million VND/m². However, after the auction, 55 winning bidders withdrew their deposits (accounting for 80% of the total number of winning bidders), resulting in a distorted market and continued damage to people's trust.

Land fevers of this type not only create a "real estate bubble" but also seriously affect socio-economic development. The "virtual" increase in land prices causes infrastructure development projects to face expensive compensation costs, causing delays or increasing the budget burden. At the same time, real estate becomes a highly speculative investment channel, eliminating resources that should be used for other production sectors, reducing the competitiveness of the economy.

From a social perspective, the uncontrolled escalation of real estate prices also poses a risk that a large part of the population, especially the young, will not be able to afford to buy or rent a house. This creates social insecurity and widens the gap between rich and poor in society.

To rectify the situation of manipulation, experts say that it is necessary to implement many synchronous solutions, from improving legal regulations to strengthening supervision. First of all, it is necessary to strictly implement the provisions of the 2024 Land Law, focusing on reviewing and adjusting the land price list to closely reflect the actual value. This not only helps the auction become transparent but also minimizes the possibility of manipulation.

In addition, it is necessary to increase the deposit and require auction participants to prove their assets through bank statements or related documents. This ensures that auction participants have sufficient financial capacity and real commitment. In cases of deposit cancellation, strict measures should be applied, forcing compensation equivalent to the value of the land lot to deter fraudulent acts.

Another important factor is to strengthen supervision and strictly handle manipulative behaviors. Authorities need to coordinate closely to detect and prevent early irregularities in auctions. Highlighting some typical cases like the recent one will help create a deterrent effect and raise awareness of law compliance among market participants.

Manipulation of land auctions, if not controlled, will certainly continue to be a major obstacle to the development of the real estate market and the economy in general. More than ever, the decisive involvement of the government, transparency in the auction process and compliance awareness of market participants are key factors to ensure a fair and healthy business environment.

The fight against land market manipulation is not only the task of the authorities but also requires the consensus of the community and genuine investors. Only when the investment market is brought back to a clean state, can real estate truly become a sustainable development channel, contributing to promoting common prosperity for the whole society.

Source: https://congthuong.vn/vu-thao-tung-dau-gia-dat-o-soc-son-xu-ly-nghiem-minh-dua-niem-tin-tro-lai-362588.html