A leader of the Hanoi Department of Natural Resources and Environment revealed that recently, land auction prices in the outskirts, conducted by districts, have soared compared to the general market price, even doubling or tripling in some areas. The department is currently coordinating with the police to verify and clarify the actions of a group of individuals involved in “pumping” land prices.
“While the land auction process is organized by local authorities, we have noticed some instances of abnormally high winning bids. We are waiting for the deadline for the payment of auction winnings to understand the situation better. This “price pumping” or “wave-making” distorts the surrounding land market, hindering the healthy development of the real estate sector,” acknowledged the leader of the Hanoi Department of Natural Resources and Environment. He also observed that most participants in these land auctions are not genuine homebuyers but rather groups with certain motives.
Previously, on July 28, Dan Phuong district held an auction for 85 land lots in Dan Phuong, Ha Mo, and Phuong Dinh wards, attracting 1,252 participants. Surprisingly, a land lot in Ha Mo ward reached a bidding price of up to 99.2 million VND per square meter, astonishing many people.
Following this, an auction for 68 land lots in Thanh Cao ward, Thanh Oai district, also witnessed high enthusiasm, with 7,000 applications from approximately 1,600 participants.
Customers submitting documents for the land auction in Hoai Duc district on August 19
At the end of the auction, the highest winning bid exceeded 100.5 million VND per square meter, with most land lots fetching prices ranging from 80 to 90 million VND per square meter. The lowest winning bid was 63.5 million VND per square meter, which was still five to eight times higher than the starting price.
Most recently, the “hotspot” of 19 land lots in the Lonh Khuc area of Tien Yen ward, Hoai Duc district, saw even more intense competition, with over 700 applications submitted.
The land auction in Hoai Duc district, which started at 9 am on August 19, only concluded at 4:30 am on August 20, after nine rounds of bidding. The highest winning bid reached 133.3 million VND per square meter for lot LK03-12, a corner lot with three frontages and an area of over 113 square meters. The total value exceeded 1.5 billion VND, more than 18 times the starting price of 7.3 million VND.
The second-highest winning bids were for lots LK03-6 and LK04-6, reaching 127.3 million VND per square meter. The remaining 14 lots fetched prices ranging from 97.3 to 121.3 million VND per square meter, while the two lowest winning bids were still as high as 91.3 million VND per square meter.
