The Art of the Deal: Unveiling the Secrets Behind the Sky-High Land Auction in Thanh Oai and Hoai Duc Districts

Regarding the auction of residential land use rights in Thanh Oai and Hoai Duc districts, on August 23, in an interview with Tien Phong newspaper, Mr. Le Van Binh, Deputy Director of the Land Department (MONRE), said that today, a working group from the MONRE has been dispatched to work with the two districts. The group will inspect auction procedures, approval of auction plans, reserve prices, and other legal requirements pertaining to auctions.

Some people argue that it is common for auctions of assets, including land use rights, to result in high winning bids, which can even increase state revenues. However, following the two recent land auction cases in Thanh Oai and Hoai Duc, the involvement of authorities in inspecting and reviewing these auctions may cause concerns among investors.

Responding to this concern, Mr. Binh asserted that the working group will examine the processes and procedures implemented by the districts during the land auctions. He emphasized that when there are abnormal signs or indications of irregularities, it is the responsibility of the authorities to investigate and rectify the situation, not to hinder the land auction process.

Regarding the winning bids for the land plots in Thanh Oai and Hoai Duc districts, Mr. Binh stated that the working group from the MONRE is still in the process of working and has not yet concluded their findings. However, he acknowledged that the high winning bids are unusual and require further investigation to understand the nature of these auctions.

“Opinions about price manipulation or collusion among investors are purely subjective. To make a conclusion, a comprehensive assessment report is necessary,” said Mr. Binh.

Mr. Binh attributed the fluctuations in the real estate market to various factors, including supply and demand dynamics, credit sources, and bank interest rates.

As previously reported by Tien Phong newspaper, Hoai Duc district recently auctioned 19 land plots in Long Khuc village, Tien Yen commune. The highest bid reached VND 133.3 million/m2, totaling VND 15 billion, which is 18 times higher than the reserve price.

In Thanh Oai district, an auction was held at the beginning of August for 68 land plots in Thanh Than village, Thanh Cao commune. The highest bid reached VND 100 million/m2, eight times higher than the reserve price.

Following the announcement of the auction results, there was public concern about possible irregularities in the land auctions in these two localities. The Hanoi Department of Natural Resources and Environment, in coordination with the Hanoi Public Security, is inspecting and verifying the matter. The Prime Minister has also issued a dispatch requesting provinces and cities to rectify the auction of land use rights.

In compliance with the Prime Minister’s directive, the MONRE has established an inspection team to work with relevant agencies and units in Hanoi. This morning, the team will work with the People’s Committee of Thanh Oai district, and in the afternoon, they will work with the People’s Committee of Hoai Duc district. They will also conduct on-site inspections and work with relevant organizations and individuals.