Hanoi suburbs bustling with land auctions starting price only 73 million VND/m2

Exciting suburban land auctions

In August 2024, one of the localities that will start the "race" for land auctions in the suburbs of Hanoi is Thanh Oai district. Specifically, the district will organize an auction of land use rights for 68 plots in Ngo Ba area, Thanh Than village, Thanh Cao commune.

Auctioned land in Alley Ba, Thanh Than village, Thanh Cao commune (Thanh Oai, Hanoi) Photo: Tam Phuc Real Estate

The above Alley Ba area is located on the inter-commune road of Binh Minh - Thanh Cao. The land is only 100m from Thanh Cao Commune People's Committee, 300m from Thanh Cao Secondary School, and 200m from the central market.

The area of each plot of land ranges from 60 - 85 m2, the starting price is around 8.6 - 12.5 million VND/m2. The auction will take place on the morning of August 10 at the hall of Thanh Oai District People's Committee.

Next, on August 19, Hoai Duc district will auction 19 plots of land in Long Khuc area, Tien Yen commune. The area of each plot of land ranges from 74 - 118 m2, the starting price is 7.3 million VND/m2. The auction venue is the hall of the Hoai Duc district cultural, information and sports center.

The above land is bordered to the Northeast by the main traffic route of Tien Le village, Tien Yen commune and Tien Yen Kindergarten. In addition, the land is also very close to the commune's primary and secondary schools.

More than a week later, on August 29, Phuc Tho district will hold an auction of 30 plots of land in Doc Tranh area, Trach My Loc commune; and 9 plots in Dong Phuong area, Tho Loc commune. The auction is scheduled to be held at the hall of the Phuc Tho district cultural, information and sports center.

In Doc Tranh area, the land areas range from 96 - 148 m2, starting price from 23.4 million VND/m2. In Dong Phuong area, the land areas range from 134 m2, starting price is 19.8 million VND/m2.

The auctioned plots of land are located next to residential areas and only about 500 meters from the secondary school and the commune People’s Committee. The technical infrastructure of the two areas has been basically completed, including electricity, water supply and drainage, telecommunications networks, etc.

In Soc Son, the district People's Committee also issued a decision on auctioning the right to use 16 plots of land in Dam Ngai area, Xuan Lai village, Xuan Thu commune. The plots of land have an area of 110 - 220m2.

Currently, the district's land fund development center is still in the process of determining the starting price and price steps. The auction is expected to take place in August 2024.

Recently, many districts on the outskirts of Hanoi have reaped huge profits from land auctions. For example, Dan Phuong district successfully auctioned 85 lots in July. The highest winning price for the lot was nearly VND100 million/m2, double the starting price. Not only that, the number of applications for participation was also very high, up to 1,252 sets, equivalent to each lot having up to 15 interested customers.

Explaining the heat from land auctions

Explaining the excitement of land auctions, Mr. Nguyen The Diep, Vice President of the Hanoi Real Estate Club, said that the regulation on annual land price lists in the 2024 Land Law could cause real estate prices to increase. Therefore, many investors are rushing to buy land before the new price list is applied on January 1, 2026.

“Moreover, the auctioned plots of land are usually priced from 3 billion VND or less. This is an easy-to-liquid price range and suitable for many people’s financial conditions,” Mr. Diep shared.

In addition, the expert also said that the districts on the outskirts of Hanoi have great advantages in terms of land fund and development space. Taking advantage of the relatively positive market sentiment in the first half of this year, district leaders will not miss the "golden goose" called land auction to increase revenue for the local budget.

According to the second quarter 2024 market report of the Vietnam Association of Realtors (VARS), land auctions in the suburbs of Hanoi have witnessed success in both the number of registrations and the amount of money collected. In the first 6 months of 2024, there were lots successfully auctioned with a value 10 times higher than the starting price.

Regarding the land segment in general, VARS experts commented that the transaction volume recorded an increase but was not really vibrant. However, the market has seen more investors "hunting" for land and proactively building houses on plots for business purposes.

“Some areas have seen localized growth in transactions and then stagnation, including the suburbs of Hanoi. However, prices in these areas have still increased by about 10-20% compared to the beginning of the year,” VARS experts said.