Investors Flock to Auctioned Land Opportunities
The Land Development Center of Dan Phuong District successfully auctioned 85 land plots, attracting a large number of participants and signaling a positive shift in the real estate market.
The auction included 2 plots in the Dong Say – Tram Sau area (phase 3) and 2 plots in Dan Phuong commune, with a starting price of VND 42 million per square meter.
67 plots were offered along the N1 road in Ha Mo commune, 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 of these 85 plots generated significant interest, with over 1,200 participants, translating to approximately 14 interested customers per plot. The event was well-attended, indicating a revival in the real estate market.
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, for plots adjacent to the N1 road branch.
In contrast to the subdued atmosphere last year, auction events for land on the outskirts of Hanoi have been attracting investors’ attention since the beginning of the year.
In June, more than 100 plots in Me Linh District were successfully auctioned, with the highest price exceeding VND 70 million per square meter. Dynamic auction activities were also observed in Dong Anh and Quoc Oai districts.
Caution Advised Against Price Manipulation
Real estate experts predict a warming up of the market in the last months of 2024, influenced by legal changes. This stimulates 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 Real Estate Business Law, with its new provisions restricting “plotting and selling land,” makes these auctions a strategic move to anticipate market changes.
However, experts caution that Hanoi’s housing supply falls short of demand, and auctions attract not only genuine buyers but also speculators. This dynamic may lead to price manipulation by investors aiming to profit from inflated prices in surrounding areas…
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 based on location. Nearby lots 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 are forced to sell at a loss. However, the rate of loss has decreased from 30-40% previously to around 20% now.
According to this CEO, compared to the peak prices in 2021, some areas have seen losses of up to 30%.
Mr. Thanh Cong, director of a real estate exchange in Ha Dong, noted that the majority of land sold at a loss is concentrated in provincial areas far from the city center. Land plots near the center, along main roads, or in populous areas experience minimal price reductions and lower sales volumes.
“While land transactions have shown positive signs recently, a significant leap is not expected due to persistently high prices. Many investors are still in the stage of monitoring and researching the market.
Given the challenging economic climate, investors should carefully consider the hype surrounding land in outlying areas. The apparent bustle may be influenced by land brokers’ tactics rather than genuine investor activity,” Mr. Cong advised.
Hong Khanh
