On the morning of August 10, a land auction took place at the Thanh Oai district gymnasium in Hanoi, offering 68 land plots in Ngõ Ba, Thanh Thần village, Thanh Cao commune, Thanh Oai district. With plot sizes ranging from 60 to 85 square meters, the starting bid was set at VND 8.6 to 12.5 million per square meter.
The auction, which ended in the afternoon, saw intense competition, with some plots fetching nearly VND 10 billion more than the starting price.
With nearly 5,000 applications and 2,000 participants, this auction set a record in Thanh Oai.
For example, plot LK01-4, with an area of 85 square meters and a starting price of VND 11.247 million per square meter, had a total starting value of VND 955,955,000. However, the winning bid for this plot reached VND 84.747 million per square meter, resulting in a total plot price of VND 7.2 billion, a staggering increase of over VND 6 billion.
According to broker Thanh, who attended the auction, there were nearly 5,000 applications and 2,000 participants. The line to register was 200 meters long, and it took an hour for some to reach the front. The highest price per square meter was VND 101 million, while regular plots went for VND 63-80 million per square meter. These prices are 5 to 6.4 times higher than the starting prices, with corner plots reaching up to 8 times the original value.
A long queue of participants waiting to register for the auction.
Immediately after the auction, brokers shared the winning bid prices, and some offered to transfer the plots for a premium of VND 250-550 million for outer plots.
After the auction, brokers are offering outer plots with a premium of VND 250-550 million.
In August, districts like Soc Son, Thanh Oai, Hoai Duc, and Quoc Oai are scheduled to auction over a hundred plots.
Mr. Nguyen Van Dinh, Chairman of the Vietnam Real Estate Brokers Association (VARS), pointed out the advantages of auctioned land, including secure legal status, completed technical infrastructure, and favorable locations. These factors make land plots attractive to investors and easy to liquidate. However, he warned about the presence of “insider trading” and professional speculators who bid to flip the plots, leaving the final buyer with a hefty premium of hundreds of millions of dong.
Mr. Nguyen Tho Tuyen, Chairman of BHS Group, shared that auctioned land in the provinces is also attractive due to its central location and clear legal status. Especially after two years of auction failures, the upcoming auctions in the provinces are expected to see lower prices.
“Therefore, I believe that the heat of the real estate market in Hanoi will eventually spread to the provinces. This could be in the form of auctioned land or properties in the provincial centers,” said Mr. Tuyen.
