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Why Do Provincial Lands Fetch Higher Auction Prices Than Hanoi’s Districts?

11 May, 2025

Why Provincial Auction Land Has Higher Winning Bids Than Hanoi Districts

Recently, land auction sessions in the provinces have recorded winning bids of up to hundreds of millions of VND per square meter.

For example, at the auction of 273 land plots in An Thi district, Hung Yen province, on February 9, the highest winning bid was 120 million VND/m2, and the lowest was 36 million VND/m2.

Also in Hung Yen, the auction of 41 land plots in Dan Tien village, Khoai Chau district, on March 5 attracted attention when a 103m2 plot had the highest winning bid of nearly 158.2 million VND/m2, and the lowest was 66.8 million VND/m2.

In Thai Binh province, the auction of 23 land plots in Tien Hai town on March 27 also surprised many people when a 150.4m2 plot had the highest winning bid of 23 billion VND, equivalent to nearly 153 million VND/m2.

The winning bids in Hung Yen and Thai Binh provinces are higher than those in some areas of Hanoi, such as Quoc Oai, Soc Son, and Chuong My…

Specifically, in Chuong My district, at the auction of 19 land plots in Chuong My town on April 19, the plot with the highest winning bid was over 115 million VND/m2.

In Quoc Oai district, the auction of 35 land plots in Ngoc My commune on April 6 recorded the highest winning bid of 119.3 million VND/m2.

In Soc Son district, the results of the auction of 33 land plots in Thanh Xuan commune on March 29 showed that the plot with the highest winning bid was 120.6 million VND/m2.

Sharing with VietNamNet, Mr. Le Dinh Chung, CEO of SGO Homes Real Estate Investment and Development Joint Stock Company, said that since the beginning of this year, many investors have paid attention to the provincial market, including Hung Yen.

According to Mr. Chung, Hung Yen is located east of Hanoi and very close to the capital. In the last 5 years, many large investors have come to this locality. As a result, Hung Yen has established a high-priced market, especially in Nhu Quynh, Van Lam, and Van Giang districts.

“The development of transport infrastructure, such as National Highways 5A, 5B, and 39A, Ring Roads 3.5 and 4, and the orientation to become an industrial hub by 2030 have attracted many large corporations to Hung Yen. In terms of economic strength, Hung Yen real estate remains attractive,” analyzed Mr. Chung.

Mr. Chung said that the winning bids in Hung Yen are generally high, but only a few corner plots have recorded sudden increases. According to surveys, these are locations where buyers have a real demand, so they bid very high, such as in An Thi district and Dan Tien village, Khoai Chau district.

Land auction in Hung Yen attracts many participants. Photo: VTX

So, what are the reasons for the higher winning bids for auction land in the provinces compared to Hanoi’s districts?

According to Mr. Chung, some areas of land auctioned in Hanoi’s districts are less associated with production and industrial zones. Areas like Quoc Oai, Dan Phuong, and Thanh Oai have winning bids of around 100 million VND, but these are inner plots, not roadside ones.

Meanwhile, Khoai Chau, Hung Yen is an emerging area with many industrial zones, so it is favored by investors. As a result, the center of the district has a winning bid of up to 158 million VND/m2.

Dan Tien village, My Hao town, Yen My district is also located in the center of the industrial zones and has a 3-meter roadside, so the winning bid is high.

In Thai Binh province, there is a planned coastal road, and the province is also developing industrial zones, but it is not clear yet. Recently, land prices in Thai Binh increased mainly due to information related to the merger of provinces.

However, Mr. Chung commented that the strongest point of auction land is its legal status, with a red book and permission to build. The weak point is the poor infrastructure and utilities. The rate of price increase and investment efficiency of auction land is not as high as that of well-invested projects in terms of utilities, greenery, and landscapes… Therefore, investors need to consider carefully and not follow the crowd psychology.

Risks of ‘surfing’ auction land deposits

Explaining the high winning bids for auction land, Mr. Pham Duc Toan, CEO of EZ Property, said that there are several reasons.

Firstly, the auction land is located in a prime location in the locality, and the number of plots is limited. Local people want to win the bid for that location, so they bid high. However, this price does not represent the whole market, but only a specific area.

Moreover, participants in the auction may own several land plots near the auction area. They join the auction to push up the land prices in that area to a new level. When the surrounding land prices increase, these participants benefit from the higher land values. This is a form of “price manipulation” through auctions.

“Many auctions have speculator groups that come in to ‘pump up’ the prices. They expect to win the bid and surf the deposit, and they are willing to forfeit the deposit if there is no buyer. So far, the deadline for deposit payment (within 120 days from the date of recognition of the auction results) has not expired, so it is not yet known whether the high-priced winning bids in the provinces are real or not. We need to wait and see,” said Mr. Toan.

According to the CEO of EZ Property, the high winning bids in Hung Yen, Thai Binh, etc., compared to some areas in Hanoi, are abnormal in terms of the market.

“In both the short and long term, land in the provinces is less effective for investment. Because the end customers are only the local people. Surfing deposits and riding the waves of land auctions in the countryside is very difficult, especially when the market is not hot,” Mr. Toan noted.

In addition, the high winning bids for auction land will help the locality achieve budget revenue targets. However, enterprises face a new price level, affecting investment attractiveness in the locality.

Nguyen Le