No Higher Than the Surrounding Area?
The auction of 19 land plots in Lòng Khúc village, Tiền Yên commune, Hoài Đức district, Hanoi, ended on the morning of August 20, but its impact remained hot. Not only did some plots sell for nearly 20 times their starting price, but the auction also lasted for over 19 hours, from 9 am on August 19 to 4:30 am the next day.
Speaking to the press, Mr. Nguyễn Chí Hiệu, Deputy Director of the Land Development Center of Hoài Đức district, said that over 500 customers participated in the auction, with more than 1,000 registered dossiers.
According to Mr. Hieu, the district’s land auction projects are always planned near the “framework roads” to ensure revenue and effective project implementation.
Explaining the reason for the long auction duration, Mr. Hieu said that besides the large number of participants, the auction plan included six compulsory rounds before the winning bid could be determined.
“According to the Law on Asset Auction, there are many auction forms and the maximum number of rounds is determined by the asset-owning unit and the consulting unit to ensure transparency and prevent negative issues,” said Mr. Hieu.
Regarding the approval of the starting price, the leader of the Land Development Center of Hoài Đức district said that it was implemented according to Government Decree 12 on land prices to ensure transparency and avoid negative issues.
That means the auction had to go through six compulsory rounds, with a price increase of VND 6 million each round, and only in the 7th round was the winning price determined. Therefore, the minimum winning price was more than VND 37 million/m2. In other words, the lowest price to win the auction was more than VND 37 million/m2. The starting price of VND 7.3 million/m2 was only for determining the deposit amount.
After more than 19 hours, the auction of 19 land plots in Tiền Yên, Hoài Đức, Hanoi, ended. This was a special auction that lasted from 9 am on August 19 to 4:30 am the next day. Photo: Hồng Khanh
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Regarding the land in Lòng Khúc village, Tiền Yên commune, he assessed that this was one of the best-planned projects. According to the regional planning, there is the Belt Road 4. The area also has schools, green spaces, and sports facilities. Almost every plot has two fronts: one facing the main road and the other facing the internal road.
Regarding the opinion that the winning prices of many plots were high, Mr. Hieu said that, according to their understanding, compared to the land prices in the surrounding communes such as An Thượng, An Khánh, and Vân Canh, the winning prices of the 19 plots were “not higher.”
Land Sold at a Premium Right After the Auction
VietNamNet’s reporters noticed that near the auction area of the 19 plots in Lòng Khúc village, Tiền Yên commune, many real estate exchanges had appeared. Some brokers even set up tents and tables to consult and invite customers right in the middle of the auctioned land area.
The premium prices for the plots ranged from VND 250-600 million per plot, depending on the location. For example, two plots belonging to LK03 were being sold at a premium of VND 600 million per plot. For plot LK03-*, the winning price was VND 97.3 million/m2, and the investor was selling at a premium of VND 250 million. Thus, the total price of this plot, including the premium, was about VND 100 million/m2…
Advertising boards and real estate transaction points next to the recently auctioned land in Lòng Khúc, Tiền Yên, Hoài Đức. Photo: Hồng Khanh
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Regarding the different premium prices for the plots, a broker explained that it depended partly on the location and partly on the investor’s winning bid. “For example, the two plots belonging to LK03 have a premium of VND 600 million because the winning bid was VND 91.3 million/m2, while the adjacent plot had a winning price of VND 97.3 million/m2. So, in the end, the total prices of the plots are equivalent,” the broker explained.
According to surveys, the land price in Tiền Yên, Hoài Đức district, is currently listed at an average of VND 43 million/m2. The land prices in neighboring communes are also similar, such as Vân Côn with an average of VND 41 million/m2…
According to some investors and brokers, the price of residential land in the Lòng Khúc area, Tiền Yên commune, Hoài Đức district, is currently at VND 80 million/m2 for land facing the main road, while land facing the alley is at VND 40-50 million/m2.
Hồng Khanh
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