A crowded scene at the sports center in Hoai Duc district, Hanoi, as people gather to witness the auction of 19 land plots in Tien Yen commune.
At 11 PM on August 19, a large crowd remained at the Hoai Duc district sports center, eagerly awaiting the final results of the auction for the 19 land plots in Tien Yen. Photo: Dan Ha
People took the opportunity to eat a quick meal to refuel during the auction process. Photo: Le Quan
According to some investors, by the sixth round of bidding, the prices had increased to five to seventeen times the starting price. Several land plots were bid up to 70-90 million VND per square meter, with one plot reaching 121.3 million VND per square meter, 16.6 times the starting price (which was 7.3 million VND per square meter). After seven rounds, one plot reached 127 million VND per square meter.
Earlier, a large number of people from neighboring provinces such as Hai Duong, Bac Ninh, and Bac Giang arrived at the auction venue for the 19 land plots in Tien Yen, Hoai Duc district, as early as 4-5 AM to complete the auction procedures.
This auction attracted over 700 applications from 400 customers.
The 19 land plots up for auction in Tien Yen range from 74 to 118 square meters. The starting price was 7.3 million VND per square meter, and the auction rules required a minimum of six rounds of direct voting.
The 19 land plots auctioned in Hoai Duc district this time are located near the route of the Ring Road 4.
According to the Price History tool on Batdongsan.com.vn, the average land price in Tien Yen, Hoai Duc district, is currently 43 million VND per square meter, a 30% increase from Q1 2024 and a 48.3% increase year-on-year.
Many people commented that the auction price of over 120 million VND per square meter is much higher than the market price in the surrounding area.
Speaking to Tien Phong, Dr. Tran Xuan Luong, Deputy Director of the Institute for Real Estate Market Research and Evaluation, shared his thoughts on the land auction fever in outlying districts such as Thanh Oai and Hoai Duc, where winning bids are much higher than market prices. He attributed this to speculation and price manipulation by investor groups. He observed that recent auctions have seen the participation of investors from Hai Duong, Bac Ninh, and Bac Giang, who are driving up prices. This trend is expected to make it more difficult for those with genuine housing needs to enter the market.
Dr. Tran Xuan Luong suggested increasing the deposit amount to 50% of the initial value and implementing a 1-2 year waiting period after a successful bid before allowing the sale and notarization of the property to curb speculation and price manipulation.
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