The Ministry of Natural Resources and Environment (MONRE) has asked municipal and provincial authorities to adjust the local land price frameworks. The request was made after the ministry found that in some localities, the price frameworks, set in accordance with the 2013 Land Law and other legal documents issued several years ago, are still being used for reference to calculate starting prices at land auctions under the 2024 Land Law.

“As a result, big differences between starting and winning prices at land auctions, which pave the way for speculators to cause chaos to the market, have a negative impact on local socio-economic development, the investment environment, business, and housing and real estate markets,” the ministry said.

Local authorities have not been updating the price frameworks to make the frameworks closer to market prices. The ministry has urged authorities to check the officially announced prices and market prices to make adjustments if necessary.

The big differences between officially announced prices and market prices could be seen at recent land auctions in Hanoi.

At a recent land auction in Hoa iDuc suburban district in Hanoi, the winning price was VND133.3 million per sq m, or 18 times higher than the starting price. The winning price was even higher than the official land prices announced for inner districts, including Hoan Kiem, Ba Dinh and Hai Ba Trung. The official prices set for Tran Hung Dao and Hue streets, for example, were VND114 million per sq m, lower than the winning price.

The prices set for some areas in Hoan Kiem, the central business district in Hanoi, were VND90-98 million per sq m, such as Hang Ma, Ly Nam De and Nguyen Huu Huan, lower than the winning prices at land auctions in the suburban districts of Dan Phuong and Thanh Oai.

The winning price of VND133.3 million per sqm was also higher than the highest price levels stipulated in the current land price frameworks for other inner districts, including Ba Dinh (VND132.6 million per sq m), Hai Ba Trung (VND106.7 million), Dong Da (VND92.8 million) and Tay Ho (VND78.8 million).

In related news, Prime Minister Pham Minh Chinh has asked MONRE, Ministries of Justice, Finance and Construction to examine localities' land auctions that have shown signs of abnormalities.

Hong Khanh