There are cases of cutting losses of 50-100 million VND.

The auction of 68 plots of land in Ngo Ba area, Thanh Than village, Thanh Cao commune (Thanh Oai, Hanoi) took place on the morning of August 10. It is known that the plots of land to be auctioned have areas ranging from 60m2 to 85m2 with starting prices from 8.6 million VND/m2 to 12.5 million VND/m2.

Notably, at the end of the auction, the corner lot with the highest winning price was nearly 100.5 million VND/m2, 8 times higher than the starting price. The regular lots had winning prices of 63-80 million VND/m2, 5 to 6.4 times higher than the starting price.

Notably, right after the auction, many winning bidders immediately offered to sell the lot for a difference of 300 to 500 million VND/lot. For example, lot LK01-4 with an area of ​​85m2, the winning price was 7.2 billion VND (84.7 million VND/m2) is being offered for a difference of 500 million VND. Similarly, lot LK02-8 with an area of ​​85m2, the winning price was 7.03 billion VND (83 million VND/m2) is also being offered for a difference of 500 million VND.

On the contrary, some people have now lowered the selling price to around 100 - 200 million VND/lot, even selling at a loss compared to the winning price. For example, lot LK04-2 has an area of ​​nearly 61m2 with a winning price of more than 4.24 billion VND (nearly 70 million VND/m2) but is now being offered for sale at 4.1 billion VND, a loss of 140 million VND compared to the winning price.

Mr. Thanh Tung, an investor in Thanh Oai, said that he submitted bids for 4 plots of land in the auction on the morning of August 10 but did not win any of them. The results also made him predict, because the land prices of people selling around only fluctuated from 30 to 40 million VND/m2. Meanwhile, the infrastructure in the area has not changed for many years.

Explaining the reason for the high winning price, Mr. Tung said that the starting price and deposit were very low, only about 100-200 million VND. Therefore, many investors came to the auction with the mindset of "win all or lose nothing". If they could quickly transfer the property for a difference of 100-200 million VND, they would sell it immediately. If they could not sell, they would accept to forfeit the deposit for a small amount of money.

"I think there will be quite a few people who will have to forfeit their deposits. Because there are currently some people who are selling at a slight loss of 50 to 100 million VND," he emphasized.

According to a survey by Dan Tri reporters, the history of land prices for sale in Thanh Cao commune (Thanh Oai) on real estate news sites tends to increase.

Specifically, in the fourth quarter of 2023, the land price for sale fluctuated between VND14-23 million/m2; in the first quarter of 2024, it fluctuated between VND14-32 million/m2; in the second quarter of 2024, it fluctuated between VND18-39 million/m2. The winning price in the recent auction was up to VND100 million/m2, which investors considered unusually high compared to the market price being offered. Therefore, it will be very difficult for the winning investor to quickly transfer the land.

Why is the winning price up to 100 million VND/m2?

Speaking to Dan Tri reporter, Mr. Nguyen Cong Quang - Director of Thanh Oai District Land Fund Development Center - said that about 4,600 auction documents were submitted, but only 4,201 documents from 1,545 people met the requirements.

Regarding the issue of the winning price being much higher than the market price, Mr. Quang affirmed that the winning price was based on market supply and demand, and there was absolutely nothing unusual. Regarding the starting price, Mr. Quang said that the previous regulations on determining land prices allowed hiring consultants. The above land plot was determined by the consultant to have a starting price of 40 to 45 million VND/m2.

However, Decree 12 has changed the method of calculating the starting price. The Decree stipulates that the starting price is determined by multiplying the local coefficient K (land price adjustment coefficient) by the price in the land price list. The local land price list is low, so the starting price is low, from 8.5 to 12.6 million/m2.

Mr. Quang said that the new regulation leads to a low starting price for land auctions. However, the low starting price and low deposit (about 200 million VND) also attract many participants, shortening the time to determine the starting price compared to the previous regulation which lasted several months.