Real estate brokers say some land plots with the highest bid price of VND133.3 million per sq m at a recent auction in Hoai Duc district eventually sold for an additional VND200 million per plot.  

A broker in Hoai Duc said if the land plot changes hands once again, the price will increase further by VND100 million. However, analysts say these are just rumors and that brokers try to inflate land prices to make people think that prices have escalated.

“The prices are dubious. It is highly possible that the land remains unsold,” an analyst said. “To date, all the land plots sold at auctions have not been resold."

The gap between the prices paid for land at auction and prices offered for sale after the auction is about VND300 million per plot on average. 

However, two land plots sold at an auction for VND91 million per sq m were offered for a price VND600 million higher. He said these were the two most promising land plots among the 19 plots auctioned recently. However, he said that the land plots can be bought for just VND300 million higher.

The price gaps of the two land plots are higher than other plots because they had the lowest bid prices though they are also well located. 

“The price gap of VND300-400 million is the most reasonable. With the gap, the price would be VND95 million per sq m,” he said.

When VietNamNet’s reporters contacted a real estate broker who was present at 2am August 20 to wait for auction results, he said there was no offer.

The broker said there was a shortage not because auctioned land had been resold or that landlords had suspended the next auctions because of possible inspections. He said he doesn’t want to connect buyers and sellers at this time because sellers have set overly high prices.

“Most of the land plots were sold at auction for over VND100 million sq m, so it is not feasible to resell immediately for profit,” he explained.

Nguyen Van Dinh, a real estate legal expert, said that only after bidding buyers pay 100 percent of the land value will they be granted a red book (land use right certificate) and have the right to transfer the land to others. In other words, they won’t have the right to resell the land until they make a full 100 percent payment.

Hong Khanh