New records were made at many land auctions in 2024, including record high prices which were tens times higher than starting prices, and the cancelation of many auction winners.

One of the most noteworthy auctions was one where 68 land plots in ThanhT han hamlet, Thanh Cao commune in Thanh Oai district in Hanoi on August 10, 2024.

The auction, attracting 1,500 participants and 4,200 dossiers, set a record for the number of people winning bids and then giving up: 55 individuals, or 80 percent of bid winners, did not pay money and withdrew from the auctions, accepting to lose their deposits. 

The winning prices at the auction were VND51-100 million per sq m, or 6-8 times higher than the starting price.

Also in Hanoi, an auction stirred up the public when it lasted 19 hours, through the night. Nineteen land plots in Tien Yen commune in Hoai Duc district were put up for auction. The highest winning price was VND133.3 million per sqm, or 30 times the starting price. The lowest winning price was VND91.3 million per sq m, or 12.5 times the starting price.

Similarly, the auction of 27 land plots in the wards of Phu Luong, Yen Nghia and Duong Noi in Ha Dong district held on October 19 finished after 15 hours. The highest price was fixed at VND262 million per sqm, or 8 times higher than the starting price, while the lowest was VND133 million per sq m.

The auction of 58 land plots in Quang Tien commune in Soc Son district in Hanoi on November 29 also stirred up the public with one participant offering VND30 billion per sq m.

Under current regulations, the auction in Soc Son must undergo six mandatory rounds. However, in the fifth round a client bid the price of VND30 billion per sq m, or 12,000 times the starting price, for three land plots. The person did not bid prices at the sixth round, therefore, so the auction failed.

The Hanoi Police have concluded that the five subjects related to the case of paying a sky-high price of VND30 billion per sq m violated regulations on assets auctioning, and legal proceedings against them have been taken.

The auction of 22 land plots in Do Dong commune of Thanh Oai district on November 30 also failed. According to the district authorities, at the eight round, many participants simultaneously gave up, thus making the auction unsuccessful.

The land auctions held in 2024 also set records in the number of participants and number of dossiers.

In Bac Giang province, for example, the auction of 72 land plots in Tan An town in Yen Dung district on August attracted 339 clients and 1,000 dossiers. The total value of all the land plots sold at the auction was VND181 billion. The highest winning price was VND5 billion.

The auction of 355 land plots in the communes of Song Mai, Song Khe and Dong Son in Bac Giang City on October 27 attracted 603 clients and 2,324 dossiers. Finally, 271 plots were successfully auctioned with total value of VND608.7 billion, or VND167.5 billion higher than the starting price.

In Ninh Binh, the auction of 129 land plots in Doi May – Lien Phuong residential quarter in Thach Binh commune in Nho Quan district on August 19 attracted 259 participants and 1,825 dossiers. After three rounds, 128 land plots found new owners with total value of VND84.6 billion.

Hot instructions

Analysts, when pointing out that the winning prices at many auctions were ‘abnormally high’, warned that this would cause ‘artificial fever’ in the real estate market and push real estate prices to new price levels which may be uncontrollable.

Prime Minister Pham Minh Chinh then signed a document requesting relevant ministries and local authorities to reconsider the auctioning of land plots, investigate and find violations in land auctioning and punish the behaviors of exploiting auctions to engage in profiteering and creating chaos in the market.

Chairs of local people's committee are responsible before the law and the Prime Minister for organizing and implementing land use rights auctions. The auctions must be organized publicly, be transparent and objective, and ensure the protection of the interests of the State and related parties.

The Hanoi People’s Committee has also requested departments and local authorities to assess the efficiency of the land allocation and leasing through auctions. They need to avoid auctions of land in areas with low prices, with not enough money to cover expenses for site clearance and infrastructure development. These land plots can be used for resettlement or public works.

Hong Khanh