The Hanoi People’s Committee has recently issued a document to the departments, sectors, districts, counties, and towns regarding land-use rights auction work.
The directive instructs units to continue improving regulations, emphasizing the limitation of organizing auctions to allocate land for individuals to build their own houses. It prioritizes auctions that collect land use fees or rent land to organizations as project investors. This aims to ensure the selection of capable investors, contributing to more efficient land use.
Notably, the Hanoi People’s Committee requests the district-level People’s Committees to establish a list of cases where individuals bid significantly higher than the market price and are then unable to make the required payments, disrupting the market.
This list will be publicized on the websites of the districts and the Department of Natural Resources and Environment, ensuring transparency and accountability.
Hanoi also proposes that the city’s police force employ professional measures to promptly detect any violations related to land auctions. Additionally, they guide the People’s Committees of the districts, counties, and towns to prevent individuals or entities that violate auction regulations from participating in future auctions.
The police are also expected to suggest solutions to prevent or restrict the participation of those who repeatedly bid abnormally high amounts and then back out from future auctions.
The land auction in Thanh Oai district, Hanoi, attracted over 4,000 applications from approximately 1,600 participants, with 80% of investors forfeiting their deposits on plots of land with winning bids ranging from 80 to 100.5 million VND per square meter. Photo: M.G |
The Department of Natural Resources and Environment is urged to expedite the process of updating and adjusting land prices, presenting them to the Hanoi People’s Committee for approval, in accordance with regulations.
Additionally, the department must promptly coordinate and guide the districts in overcoming challenges related to land price determination.
The Hanoi People’s Committee also advises the units organizing land auctions to consider adjusting the increment of the auction and the auction format (mandatory multi-round bidding) to ensure competitiveness and alignment with market prices.
This directive comes amidst recent land auctions in Hanoi’s outlying districts, such as Hoai Duc and Thanh Oai, which have attracted significant attention due to the high number of participants and land prices exceeding 100 million VND per square meter, with the highest reaching over 133 million VND per square meter, 18 times the starting price. Many investors have backed out after winning these auctions.
In a recent report to the Government Office, the Ministry of Construction also pointed out limitations and negative aspects, including the presence of “auction brokers” in some places, colluding to affect the interests of participants.
The Ministry noted the occurrence of abnormally high bids, followed by forfeiting deposits, creating artificial price levels to manipulate the market. Additionally, the buying and selling of multiple land lots for illegal profits have become common and even organized in some areas.
The management agency evaluates that winning auction prices that are many times higher than the starting price will negatively affect land and housing prices, the housing and real estate market (supply and demand), and social security and order.
Hong Khanh
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