Investors Flock to Auctioned Land Opportunities
The Land Development Center of Dan Phuong District successfully auctioned 85 land plots, generating significant interest from investors.
The auctioned plots included two in the Dong Say – Tram Sau area (phase 3) and two in Dan Phuong commune, with a starting price of VND 42 million per square meter.
67 plots in the N1 road corridor in Ha Mo commune were offered with starting bids ranging from VND 40 million to VND 51 million per square meter.
Additionally, 16 plots in the De Nhi area of Phuong Dinh commune (phase 2) were auctioned, with starting prices from VND 35 million to VND 41 million per square meter.
The auction attracted over 1,200 participants, with approximately 14 bidders per plot. The event was well-attended, indicating strong interest in these land opportunities.
At the end of the auction, all 85 plots were successfully sold. The highest bid reached VND 99.2 million per square meter, double the starting price. These plots are located near the N1 road branch.
In contrast to the subdued atmosphere last year, land auctions in the outskirts of Hanoi have consistently drawn the attention of investors since the beginning of the year.
In June, more than 100 plots in Me Linh District were auctioned, with the highest price exceeding VND 70 million per square meter. Similar auction activities have been vibrant in Dong Anh and Quoc Oai districts.
Caution Advised Against Price Manipulation
Real estate experts predict that the real estate market will heat up towards the end of 2024 due to legal changes. This may stimulate investor psychology to some extent.
 Hanoi’s land transactions are inching up, but prices remain high. Investors are advised to be cautious of price manipulation. Photo: Hong Khanh
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In the land segment, investors believe that the enforcement of the 2023 Business Law, with its new provisions restricting “plotting and selling land,” makes these auctions a timely opportunity to get ahead of the market.
However, experts caution that the Hanoi market has a supply-demand imbalance. Auctions attract not only genuine buyers but also speculators. Therefore, it is possible that some investors may manipulate prices in certain auctions to inflate the value of surrounding lands for their benefit…
In reality, after many auctions, “land brokers” emerge on social media groups dedicated to land trading, offering auctioned plots at the winning bid price plus a premium depending on the location. Nearby lands are also hastily advertised for sale.
The CEO of a Hanoi-based company assesses that while Hanoi’s land transactions are gradually improving, prices remain elevated. Land investors are still facing losses in many places. To improve liquidity, investors have to sell at a loss. However, the loss ratio has decreased from 30-40% to around 20%.
According to him, compared to the peak prices in 2021, there are areas where investors have to accept a 30% loss.
Mr. Thanh Cong, director of a real estate exchange in Ha Dong, said that the majority of land sold at a loss is concentrated in provincial areas far from the center. Lands close to the center, on major roads, or in populous areas have seen minimal price reductions and fewer sales.
“While land transactions have shown positive signs recently, a significant jump is not expected due to persistently high prices. Many investors are still in the stage of monitoring and studying the market.
Given the challenging economic climate, investors should carefully consider the hype surrounding certain peripheral areas. The apparent bustle may not reflect genuine investor activity but could be orchestrated by land brokers,” warned Mr. Cong.
Hong Khanh
