Auction shock: Thanh Oai land reduces premium to 20 million VND, new lots start from only 8 million VND/m2
Thanh Oai, Hanoi land auction reaches 100 million VND/m2: Twice or thrice the surrounding area’s price, is it too risky?
Truong Son Auction Joint Stock Company, the organizer of the first land auction in Thanh Oai district for 57 land plots in Cao Duong commune scheduled for tomorrow (August 17th), has unexpectedly announced the cancellation of the auction and the refund of application fees and deposits to customers.
Truong Son Auction Joint Stock Company stated that they received a notification from the Land Development Center of Thanh Oai district regarding the suspension of the auction for the 57 land plots in Dam, Muc Xa village, Cao Duong commune, Thanh Oai district, Hanoi.
The reason for this decision is that the People’s Committee of Thanh Oai district is re-determining the starting price for the auction of 114 land plots in Cao Duong commune, following the decision of the People’s Committee of Hanoi.
Previously, according to the announcement, the 57 land plots in Dam, Muc Xa village, Cao Duong commune had an area ranging from 74.63 to 134.69 m2, with a starting price of 8.097 million VND/m2.
At the above starting price (excluding taxes, fees, and charges), the deposit for the land plots ranged from nearly 121 to 218 million VND.
It is known that in August, Thanh Oai district will not organize any other land auctions.
 Land auctions in the suburban districts of Hanoi are attracting investors’ attention. Photo: Hong Khanh |
On August 10th, Thanh Oai district held an auction for 68 land lots in Ngo Ba, Thanh Than village, Thanh Cao commune. This auction caused a stir in the real estate investment community and public opinion as the winning bid was 7-8 times higher than the starting price. From a starting price of 8.6-12.5 million VND/m2, the highest winning bid exceeded 100 million VND/m2.
Many people opined that the reason this auction attracted so many investors was due to the low starting price. With the above-mentioned starting price, investors only needed to make a 20% deposit, equivalent to about 200 million VND.
Suburban district auctions 19 land lots, attracting nearly 700 applications
On August 19th, Hoai Duc district will organize an auction for the land use rights of 19 land plots in LK04, Long Cuc village, Tien Yen commune. The area of the land plots ranges from 74 to 118 m2.
Also in Hoai Duc district, on August 26th, an auction will be held for 20 land plots with the codes LK01 and LK02, with an area ranging from 89.6 to 145.6 m2. The starting price for the auction is 7.3 million VND/m2.
Meanwhile, according to PV’s survey of real estate listings in Tien Yen commune (Hoai Duc district) in the first two quarters of 2024, there has been an upward trend. In the past three months, the average price has been 43 million VND/m2, an increase of 10 million VND/m2 compared to the first quarter.
Listings in neighboring communes are also at similar price levels. For example, in Van Con commune, the average listing price is 41 million VND/m2, and in Duc Thuong commune, it is 62 million VND/m2.
According to the information obtained by the reporter, there are 71 land lots in the auction area of Long Cuc village, Tien Yen commune, which the district plans to auction in three batches to make adjustments if necessary. The first auction will be for 19 land lots, and so far, 700 sets of application documents have been sold to 400 customers.
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Mr. Nguyen Van Dinh, Vice Chairman of the Vietnam Real Estate Brokers Association, said that in the past time, due to the prolonged process of law making and amending, the real estate market has seen little movement. In Hanoi, in the past 3-4 years, there have been almost no new official projects entering the market. There have also been very few land-related projects. Many land auctions in 2022-2023 were unsuccessful. Mr. Dinh assessed that the real estate supply is weak, but the demand is very strong. That is why thousands of people are interested in just a few dozen land lots, and about a thousand people buy application documents to participate in the auction. According to Mr. Dinh, while the participants may have their calculations, the market will self-regulate through supply and demand, as evidenced by some land auction winners in Thanh Oai district recently reselling their land at a loss. Therefore, participants in the real estate market need to have knowledge and expertise. |
By Hong Khanh
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