An intense bidding war erupted during the auction of 19 land lots in Lon Guc, Tien Yen, Hanoi, lasting over 18 hours.
Land auctions in the outskirts of Hanoi have been creating a stir recently. The heat from the record-breaking land auction in Thanh Oai, where the highest bid reached an unprecedented VND 100.5 million per square meter for the area, has barely cooled down. Compared to the starting price of VND 8.6 – 12.5 million per square meter, the winning bid was five to eight times higher. Following this, on August 19, the auction of 19 land parcels in Lon Guc, Tien Yen, Hanoi, became even hotter, lasting over 18 hours with ten bidding rounds. The highest bid reached VND 133.3 million per square meter, 18 times higher than the starting price.
According to historical data from the Batdongsan.com.vn platform, the average asking price for land in Tien Yen, Hoai Duc, Hanoi, in the second quarter of 2024 was VND 43 million per square meter. In the past year, land prices in this area have increased by more than 48%. However, the auction prices are still two to three times higher than the average market rates.
Meanwhile, asking prices in neighboring communes in Hoai Duc district ranged from VND 22 million to VND 62 million per square meter in the second quarter of 2024.
Mr. Dinh Minh Tuan, Regional Director of Batdongsan.com.vn for the Southern region, commented that such high auction results would make land compensation for new projects more expensive. With winning bids significantly higher than the market average, local landowners are likely to demand similar prices for their properties. The sudden spike in land prices may also fuel land speculation, as people rush to buy land, expecting further price increases. However, this could lead to a stagnation of capital in land instead of being circulated in other economic activities.
Mr. Tran Minh, a personal real estate investment and management consultant, pointed out that after the auction, the only thing stuck in people’s minds is the record-breaking price of VND 133 million per square meter for land in Hanoi (the highest bid for a corner lot) and how it further fuels the real estate market. The next auction will likely attract even more attention, driving prices up and creating a more significant price gap.
Following the record-breaking auctions in Hoai Duc and Thanh Oai, Mr. Minh raised a concerning question: “If land auctions in more developed districts follow this trend, will prices reach VND 180-250 million per square meter? At this rate, low-rise project prices will need to be VND 300-400 million per square meter, and apartment prices will have to increase to VND 80-100 million per square meter.”
Mr. Minh also noted that recent auctions have attracted a lot of attention from the public, investors, and speculators, easily creating a fear of missing out for new buyers.
According to Batdongsan.com.vn statistics, the demand for land in the second quarter increased by 33% compared to the first quarter of 2024. However, this improvement is localized to specific areas, especially in the North. Hanoi, in particular, saw a 75% increase in land interest. In the first half of 2024, land in Dong Anh, Gia Lam, Hoai Duc, Thach That, and Quoc Oai in Hanoi recorded a 48% – 104% increase in search traffic.
According to the plan of the Hanoi People’s Committee, Hoai Duc, along with Gia Lam, Dong Anh, Dan Phuong, and Thanh Tri, is one of the five districts that will become new urban districts by 2025. Hoai Duc is located in the west, about 15 km from the city center. It covers an area of 82 square kilometers and has a population of over 230,000 people, comprising 19 communes and one town.
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