Land auctions are gloomy, with some places offering "third" auctions and still not selling

Since the beginning of the year until now, in Hanoi and many localities, land auctions have been massively held, but they are all in a gloomy situation, with not even a single real buyer participating.

In Hanoi, according to the city's plan, Me Linh district will conduct a second auction for Dong Truoc area, Lien Mac commune in September on a total area of 7.5 hectares of land.

In October, the district will also continue to auction Point X2, Residential Group No. 4, Quang Minh town with an area of 0.9 hectares.

In Soc Son, the locality will organize an auction of land use rights for 50 auctioned plots of land in 2 areas. Of these, 28 plots of land in Tan Thai village with an area of 95 - 194.4 m2 have prices ranging from 7.4 to 13.4 million VND/m2; 22 plots of land in Duoc Thuong village with auction land areas of 89 - 200m2, with starting prices from 45 - 49.7 million VND/m2.

Since the beginning of the year, Soc Son District (Hanoi) and many other localities have continuously organized land auctions

Dong Anh is also an area on the outskirts of Hanoi with an abundant supply of auctioned land in September. Specifically, 11 auctioned land lots in Tam Xa with an area of 75-144 m2 will be auctioned at prices from 43 - 50 million VND/m2.

It is worth mentioning that there are many places that have held auctions many times but still failed. For example, at the auction land in Hoai Duc district, the auction was announced 3 times, with a starting price of 60.9 million VND/m2, but there were no investors participating so it was not possible. successful auction.

This is a situation that not only happens in Hoai Duc, Hanoi, but also in a number of other localities, causing difficulties in increasing budget revenue.

This situation is in contrast to the bustling scene at land auctions about 2 years ago. The local representative explained that the main reason was due to the cooling of the real estate market. However, the starting price is set from the end of 2022, based on the winning price of the previous auction, when the market is still vibrant, so it is no longer suitable for the market. Although the locality wants to bring the starting price to a lower level, there are no specific regulations to do so.

Regarding land auctions, the Hanoi People's Committee said that from the beginning of the year until now, the auction of land use rights in localities still has many difficulties, leading to the collection of land use rights auction fees reaching a high level. lower than planned.

Of these, the city organized 65 auctions of land use rights with 37 successful auctions and 28 unsuccessful auctions. According to the results of land use rights auction collection, it was 724 billion VND, only reaching 5.42% of the year's plan. Many opinions believe that there needs to be more flexibility in starting prices to remove difficulties for localities.

In Bac Giang, thousands of plots of land were also auctioned locally in several rounds

The "sluggish" situation not only occurs in land auctions in Hanoi, but in many neighboring provinces, the auctions have almost only trading floors and brokers, completely absent of people. People have real needs.

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For example, in Bac Giang province, in Viet Yen, Lang Giang districts,... dozens of land auctions have been held regularly again in recent days.

Compared to land prices in 2020, the starting price at local auctions has been adjusted downward, ranging from 10 - 14 million VND/m2, depending on the area.

However, the majority of auction participants are people from trading floors and brokers, and there are no buyers with real housing needs.

Mr. Nguyen Thai Hung - a "landworker" in Bac Giang said that currently the supply of auctioned land is quite abundant but the demand is weak. At auctions, auction participants are mainly investors. They offer high prices. After winning, they always sell for profit. If they cannot sell, they will accept to give up the deposit.

The silhouette of land workers selling "surf" after land auctions

“After winning the bid for each plot of land, they try to sell it immediately, with a thin difference of only 20 million - 70 million/lot. If there is no buyer, many people will then put down the deposit instead of putting in the money" - Mr. Hung informed.

Mr. Nguyen The Diep - Vice President of Hanoi Real Estate Club also shared that inflating land prices through auctions to drive up prices in the area is no longer a new thing. Many auction participants are mainly those who want to speculate to make a profit, while the actual needs of home buyers are very little.

Mr. Diep also emphasized that in the current period of low market liquidity, surfing to sell at a price difference is very difficult, so investors no longer participate as much as before. Previously, the price often had to be much higher than the starting price to win a bid, but now, the price difference only needs to be 5 - 10%.

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