Regarding this land lot, Q., a real estate broker in Hoai Duc, shared that if a customer wishes to purchase it, meaning it would be a second-hand transfer, the price would be 100 million VND more, totaling 300 million VND. However, Q. believes that this is likely a tactic by the land lot’s owner.
“It’s highly probable that this is a strategy for their people to put down a deposit, but the actual situation is still unclear, and it’s likely that the lot hasn’t been sold yet. Up to this point, all the auctioned land lots in Tien Yen commune from the previous auction remain untouched, except for the information about the lot that sold for the highest price of 133.3 million VND per square meter, which has been resold once with a premium of 200 million VND,” Q. stated.
For the remaining lots, brokers have informed that the premium has become more “flexible” after the auction, currently sitting at around 300 million VND per lot. Specifically, the two lots that sold for 91 million VND per square meter are now being quoted a premium of 600 million VND. These two lots are also considered by Q. to be the most promising in the auction of the 19 lots.
The broker even suggested a way to “bargain” and push for a lower premium, bringing it down to around 300-400 million VND, as the market is quite “sensitive” at the moment.
Land lots successfully auctioned off in Tien Yen commune, Hoai Duc district (Hanoi) on August 20th. Photo: Hong Khanh |
“The two lots that sold for 91 million VND per square meter are quoted a higher premium because they were auctioned off at the lowest price in the area, while their location, two frontages, and area are the same as the others. Given the current situation, it’s reasonable for customers to negotiate and bring the premium down to 300-400 million VND. This would bring the land lot price to around 95 million VND per square meter. The market is quite ‘sensitive’ at the moment, so surfing the premium is challenging. I still advise customers to be cautious and calculative when investing at this time,” Q. shared.
When contacted, Y., another real estate broker who had been present until 2 a.m. on August 20 to await the auction results, shook her head and said there was no stock available.
The broker explained that it’s not a matter of scarce supply due to transactions or landowners changing their minds after the information about inspections and the authorities’ decision to temporarily halt the auctions; it’s because the prices are too high, and they don’t want to sell.
“The land lots that sold at auction mostly started at 100 million VND per square meter, which is extremely high, so the likelihood of ‘surfing the premium’ is very low. If customers invest at this point, they may face capital stagnation,” Y. stated.
Buying at a premium and investing in auctioned land can easily lead to “loss of money and trouble”
Mr. Pham Duc Toan, CEO of EZ Vietnam Joint Stock Company, investing and developing EZ Vietnam Real Estate (EZ Property), pointed out that after the auction, the land lots are openly offered for sale at premiums of up to hundreds of millions of VND. This situation turns auctioned land into a new type of commodity in the real estate market and gives rise to the profession of “auction-resale” with professional auction teams.
At these auctions, they will buy multiple lots and then immediately resell them.
Speaking to the reporter, Mr. Nguyen Van Dinh, a real estate legal expert, said that the procedure for transferring land through an auction of land use rights is stipulated in Article 229 of the 2024 Land Law.
According to this law, after the auction results are recognized, the winning bidder completes the payment, and the land management agency will submit to the People’s Committee with the appropriate authority (in this case, the district People’s Committee) to issue a decision on land allocation and grant a certificate of land use rights, ownership of houses and other land-related assets (pink book), and then hand over the land and present the pink book to the auction winner.
“Consequently, only after completing the payment of the full amount of the winning bid, will the individual be granted the pink book and permitted to transfer the land to another party. If the auction winner has not yet paid, the land cannot be transferred,” Mr. Dinh asserted.
 Land lots openly offered for sale with premiums of up to hundreds of millions of VND immediately after the auction. Photo: Hong Khanh |
According to the expert, when land lots are resold immediately after the auction, the parties typically enter into civil agreements for the buyer to transfer the money to the seller. The seller then pays according to the auction results, receives the pink book, and transfers the land to the buyer as agreed.
“This process usually takes time and is not notarized or certified, so the buyer’s interests are not protected. If the seller breaks the agreement and transfers the land to another party, it will lead to disputes between the parties. Therefore, in this case, individuals need to be cautious and avoid engaging in transactions that do not ensure legal safety to prevent financial loss and trouble,” the expert warned.
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Hoai Duc District halts land auctions On August 22, a day after the Prime Minister’s request to rectify land auction activities, Hoai Duc District announced the cancellation of two subsequent auctions of 52 lots in Long Khuc village, Tien Yen commune, to allow an inspection team from the Ministry of Natural Resources and Environment to verify issues related to the auctions. The auction organizer in Hoai Duc, the Lac Viet Partnership Auction Company, also announced the suspension of the two auctions for 52 land lots. Twenty lots were scheduled for auction on August 26, and 32 lots were planned for September 9. Customers who have purchased auction documents and made deposits to participate will have their applications retained or their money refunded according to regulations. The district People’s Committee of Hoai Duc will announce the rescheduled auction dates for these land lots later. |
Hong Khanh
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