Overnight land auction in Hanoi, house prices have a large gap compared to income, HCMC surveys opinions on adjusted land price list

The real estate bond market is bustling, land auctions are held overnight in Hanoi, Ho Chi Minh City surveys people's opinions on the adjusted land price list... are the latest real estate news.

As of May 31, 2024, outstanding credit for real estate business activities reached VND 1,205,437 billion. (Photo: Linh An)

Real estate credit growth decreases

According to the second quarter 2024 report of the Ministry of Construction, citing the report of the State Bank of Vietnam, as of May 31, outstanding credit for real estate business activities reached VND 1,205,437 billion.

In June 2024, credit growth reached 3.6%, higher than the credit growth rate of the first 5 months of the year combined. However, it is noteworthy that one of the main lending sectors of credit growth, real estate, has decreased sharply in recent times. The demand for loans from businesses and people has slowed down, although housing prices are high, actual transactions are not many.

The Ministry of Construction assessed that the reason is that housing prices are at a large gap compared to people's incomes. This trend continues due to economic difficulties and no signs of income increasing again.

Currently, the State Bank of Vietnam has been closely monitoring the developments and macroeconomic situation and closely following the Government's direction, while focusing on building and perfecting institutions and policies; improving the effectiveness and efficiency in deploying, implementing and complying with the direction of the Government and the Prime Minister.

Regarding the bond issuance situation for the real estate sector, according to data compiled by the Vietnam Bond Market Association (VBMA) from the Hanoi Stock Exchange (HNX) and the State Securities Commission (SSC), since the beginning of the year, there have been 102 private issuances worth VND104,109 billion and 10 public issuances worth VND11,378 billion.

The real estate sector still dominates capital mobilization activities from the bond channel. In the second quarter of 2024, assessment reports from a number of bond market research organizations showed that real estate bonds have tended to increase issuance again, and businesses have reduced debt maturing pressure compared to the previous quarter.

Specifically, in April 2024, the issuance value of the real estate industry group dominated capital mobilization activities from the bond channel, accounting for 56% of the total issuance value in the month.

Or in May 2024, the group of banks and real estate issuers including enterprises: Vingroup Joint Stock Company had 2 final offerings, raising an additional 4,000 billion VND; Vinhomes Joint Stock Company also completed the plan after selling an additional 2,000 billion VND bond lot; Hoang Truc My Company Limited sold a bond lot worth 200 billion VND; IDTT Joint Stock Company (formerly Thu Thua IDICO Urban and Industrial Park Development Joint Stock Company - CONAC) raised 200 billion VND.

In June 2024, businesses issued a total of 62 bond lots, bringing in VND 68,000 billion, more than double the same period in 2023. Of which, the construction/real estate industry group mobilized about VND 8,000 billion, accounting for 12%.

According to the Ministry of Construction, data in the second quarter of 2024 shows signs of bond issuance by some real estate businesses returning and can be expected to be more stable for an important capital mobilization channel of the real estate industry.

However, besides the positive aspects that have been achieved, the pressure of bond maturity is still a heavy responsibility of real estate enterprises to bring confidence to investors in the corporate bond market in general and real estate corporate bonds in particular, to develop stably and healthily in the coming time.

Hoai Duc land auction all night, there is a lot over 133 million/m2

After more than 19 hours, the auction of 19 plots of land in Tien Yen commune, Hoai Duc (Hanoi) ended with the highest winning price of 133.3 million VND/m2, the lowest of 91.3 million VND/m2. This was a special auction that ended from 9:00 a.m. on August 19 to 4:30 a.m. on August 20.

According to the Hoai Duc District Land Fund Development Center, before the auction of 19 land lots with an area of ​​74-118 m2 in Long Khuc area, Tien Yen commune, more than 700 dossiers from about 400 people submitted to participate in the auction. The lowest starting price was from 7.3 million VND/m2.

The auctioned land in Long Khuc, Tien Yen commune, Hoai Duc district is located next to the Ring Road 4 project. (Source: Vietnamnet)

To gain the right to use the land, investors must go through many mandatory bidding rounds, each with a minimum price of 6 million VND/m2.

In the final round of the auction, there were about 20 people left to bid. After 9 rounds, lot LK03-12 won the highest bid of 133.3 million VND/m2, more than 18 times higher than the starting price. This is a corner lot with 3 frontages, more than 113m2 wide, and was bid for more than 15 billion VND.

The two plots of land with the second highest auction price are plots LK03-6 and LK04-6, priced at 127.3 million VND/m2.

The remaining 14 lots had winning auction prices ranging from 97.3 to 121.3 million VND/m2. The 2 winning lots with the lowest auction prices were also up to 91.3 million VND/m2.

Before that, when the auction lasted until midnight, many people had to give up because the price was too high. Many people shook their heads in disappointment because the land price was "too expensive".

Although the auction lasted until the next day, ending at dawn, many brokers still waited in front of the hall of the Hoai Duc District Cultural Information Center to ask for information about the land lots and the phone numbers of the winners.

Brokers said that they will get information to get the difference price of investors who want to skim deposits or when there are interested customers, they will immediately contact the investor.

Before the auction, the price of 90-100 million VND/m2 for land plots in Tien Yen commune was predicted by some investors and brokers.

According to some investors and brokers, the price of residential land around Long Khuc area, Tien Yen commune, Hoai Duc district is at 80 million VND/m2 for land facing the road, while land facing the alley is at 40-50 million VND/m2. The land can benefit after the completion of the Ring Road 4 project as it is only about 100m away.

Previously, on August 10, the Thanh Oai land auction established the highest winning bid of over 100 million VND/m2, although the location was not as beautiful and this area had not had strong changes in infrastructure.

On August 26, Hoai Duc district will continue to auction 20 land plots marked LK01 and LK02, with areas ranging from 89.6-145.6 square meters.

Ho Chi Minh City surveys people's opinions on adjusted land price list

From August 19-23, the Propaganda Department of the Ho Chi Minh City Party Committee surveyed and polled city residents about the draft adjusted land price list.

Regarding the draft decision to adjust the 2020 land price list (adjusted land price list), the Propaganda Department of the Ho Chi Minh City Party Committee will conduct a survey and public opinion poll on the internet for cadres, party members, union members, union members and people living and working in the area.

According to the Propaganda Department of the Ho Chi Minh City Party Committee, the purpose of this survey is to obtain more information and assess people's interest in the draft adjusted land price list. The survey period is from August 19-23.

The draft of the adjusted land price list is being prepared by the Department of Natural Resources and Environment (DONRE) of Ho Chi Minh City, and is expected to be applied from August 1 to the end of this year. However, the DONRE is still seeking opinions from relevant organizations before submitting it to the Ho Chi Minh City Land Price List Appraisal Council for consideration.

The adjusted land price list is built in the direction of increasing land prices, gradually bringing land prices closer to market transaction prices. Compared to the old land price list, the adjusted land price list updates 4,565 routes, an increase of 557 routes.

For residential land, prices are expected to increase sharply compared to the 2020 land price list. The average increase is 5-10 times compared to previous prices in districts 1, 3, 5, 6, 8, 10, 11, Phu Nhuan, Tan Binh, Go Vap and Binh Thanh.

Localities with land prices increasing on average 10-20 times compared to before include districts 4, 7, 12, Tan Phu, Binh Tan and districts Nha Be, Can Gio, Binh Chanh, Cu Chi, Thu Duc City. In particular, land prices in Hoc Mon district have increased on average 22 times compared to before.

Although the leader of the Department of Natural Resources and Environment of Ho Chi Minh City said that applying the adjusted land price list is necessary, has many advantages and does not increase real estate prices, there are still many opposing opinions.

It is known that in July, the number of land records in Ho Chi Minh City continued to increase with nearly 40,000 sets, the majority of which were still sale and mortgage records. Ho Chi Minh City's land-related revenue was more than 12,000 billion VND in the past 7 months.

Ba Ria - Vung Tau temporarily stops processing land records

Last week, the tax departments in charge of districts, towns and cities of Ba Ria - Vung Tau province sent notices to land registration office branches about temporarily stopping processing records to determine land financial obligations and returning cadastral information transfer forms.

According to tax departments, the temporary suspension of land records as mentioned above is due to problems with land prices in the land price list according to the provisions of the 2024 Land Law that has just come into effect.

Currently, the Tax Department of Ba Ria - Vung Tau province is proposing to the Provincial People's Committee to temporarily suspend the determination of financial obligations for land use fees and real estate transfer records for individuals arising from August 1.

Source: https://baoquocte.vn/bat-dong-san-moi-nhat-xuyen-dem-dau-gia-dat-o-ha-noi-gia-nha-chenh-lech-lon-so-voi-thu-nhap-tphcm-khao-sat-y-kien-ve-bang-gia-dat-dieu-chinh-283254.html