The auction price was pushed up to 100 million VND/m2.

Many investors were surprised when thousands of plots of land in suburban districts, 30-40km from the city center, were priced at up to hundreds of millions of VND/ ^m2 .

Accordingly, on August 10, the Thanh Oai District Land Fund Development Center (Hanoi) coordinated with Vietnam Auction Joint Stock Company to auction 68 land lots in Ngo Ba area, Thanh Than village, Thanh Cao commune, Thanh Oai district.

The auctioned land lots have an area of ​​60-85 ^m2 /lot, the starting price of the auctioned land lots is from 8.6 - 12.5 million VND/ ^m2 .

What surprised investors participating in the auction was the sky-high winning bid prices of the land lots, ranging from 52 to 100 million VND/ ^m2 , 7 to 8 times higher than the starting price, depending on the location of the land lots.

A representative of the Thanh Oai District Land Fund Development Center said that the auction was attended by 1,600 people, with a total of 7,000 registration documents submitted to participate in the auction. This is a record number of documents participating in a land auction in Thanh Oai District, Hanoi up to now.

The winning auction price of the land lots was 4-7 billion VND/lot higher than the starting price. Many people who won the auction sold the land lots at a price difference of 300-500 million VND/lot.

Previously, Dong Anh district, Hanoi also organized a land auction, the winning price of many land lots also jumped to more than 100 million VND/ ^m2 .

In addition to Thanh Oai district, this August, a series of suburban districts of Hanoi will also organize land auctions, of which Hoai Duc district will organize an auction of 19 land lots in Long Khuc area, Tien Yen commune on August 19, with a starting price of about 7.3 million VND/ ^m2 .

Similarly, the Soc Son District Land Fund Development Center is preparing to auction 16 land plots in Dam Ngai area, Xuan Thu commune.

Phuc Tho District Land Fund Development Center is preparing to auction 30 land lots in Doc Tranh area, Trach My Loc commune; and 9 TT8 plots in Dong Phuong area, Tho Loc commune.

High demand, low supply?

In Hanoi, the City People's Committee said that by the end of May 2024, land auctions had reached more than 20% of the target, collecting VND5,100 billion in budget revenue. Since the beginning of the year, consecutive sessions have been successfully organized in the districts of Me Linh, Dong Anh, Dan Phuong, Thuong Tin... In many sessions, the amount collected was tens of billions higher than the starting point.

Speaking to Tuoi Tre Online , Mr. Nguyen Van Dinh, Chairman of the Vietnam Real Estate Brokers Association, said that the auction prices of land in suburban districts of Hanoi have increased abnormally recently and that the demand for investment and business is very high, but there is too little supply, too few projects are brought to the market, this creates pressure to push up land prices in the market.

Regarding the impact on the real estate market, Mr. Dinh affirmed that real estate prices on the market are virtual, but the auction price in Thanh Oai compared to Dong Anh in the past is much lower. This reflects the scarcity of land in the market, investors flock to land auctions.