Investors Flock to Auctioned Land Opportunities
The Land Development Center of Dan Phuong District successfully auctioned 85 land lots, generating significant interest from investors.
The auction included two lots in the Dong Say – Tram Sau area (phase 3) and two lots in Dan Phuong commune, with a starting price of VND 42 million per square meter.
67 lots 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.
16 lots in the De Nhi area of Phuong Dinh commune (phase 2) had a starting price of VND 35 million to VND 41 million per square meter.
With 85 lots up for auction, over 1,200 participants registered, indicating a strong interest in these land opportunities. The auction event was well-attended, reflecting the high level of enthusiasm among investors.
At the end of the auction, all 85 lots were successfully sold. The highest bid reached VND 99.2 million per square meter, double the starting price. These lots were located along the N1 road, a prime location.
In contrast to the subdued atmosphere last year, land auctions in the outskirts of Hanoi have been attracting investors’ attention since the beginning of the year.
In June, more than 100 lots in Me Linh District were auctioned, with the highest price exceeding VND 70 million per square meter. Dynamic land auction activities were also observed 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 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
|
In the land segment, investors believe that the new Business Law of 2023, with its restrictions on “plotting and selling land,” has made auctions a popular way to get ahead of the market.
However, experts warn that Hanoi’s real estate market has a supply-demand imbalance. Auctions attract not only genuine buyers but also speculators. Therefore, it is possible that some investors manipulate prices during auctions 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 lots 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 high. Land investors are forced to sell at a loss to maintain liquidity. However, the rate of loss-cutting has decreased from 30-40% to around 20%.
According to him, 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, said that loss-cutting land sales are mainly in provincial areas far from the center. Land close to the center, on major roads, or in populous areas has seen minimal price reductions and fewer sales.
“While land transactions have shown positive signs recently, a significant jump is not expected due to 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 land in outlying areas. The apparent bustle may be orchestrated by land brokers rather than genuine investors,” Mr. Cong cautioned.
Hong Khanh
