Land in suburban districts of Hanoi starting at 125 million VND/m2, winning bid up to 100 million VND/m2

On August 10, Thanh Oai District Land Fund Development Center ( Hanoi ) coordinated with National Joint Stock Auction Company No. 5 to organize an auction of land use rights for 68 plots of land in Alley Ba, Thanh Than village, Thanh Cao commune, Thanh Oai district.

The project of Alley Ba, Thanh Than village, Thanh Cao commune (Thanh Oai district) was assigned by Hanoi People's Committee to Thanh Oai District People's Committee to implement the project of constructing technical infrastructure for auction in Decision 6381 dated December 14, 2023.

Of the total 10,297.3 m2 equivalent to 68 lots, there are 5,595.1 m2 of land auctioned for residential land use rights; 3,323.3 m2 of land for technical infrastructure and 1,378.9 m2 within the red line. The starting price for the land plots ranges from VND 8.6 million/m2 to VND 12.5 million/m2. The step price applied to all land plots is VND 100,000/m2. The auction attracted 1,500 participants.

The auction results surprised many people , such as lot LK01-4, area 85 m2, starting price 11.2 million VND/m2, winning auction price 84.7 million VND/m2, total land value is 7.2 billion VND. Lot LK01-11, starting price 12.5 million VND/m2, winning auction price 90.6 million VND/m2. Lot LK03-10 with area nearly 65 m2 had the highest winning price of over 100.5 million VND/m2, 8 times higher than the starting price.

The total amount of money Thanh Oai district collected from this land use rights auction was 404.6 billion VND, the difference in starting price was 349 billion VND (about 8 times higher).

Notably, right after the auction, many land brokers appeared on social media groups selling land at the winning price plus a difference of hundreds of millions of dong, depending on the location of the land lot.

According to the broker's price list, the lots have a common price difference of 200 to 500 million VND/lot. There is a lot in the LK05 area that has a price difference of up to 700 million VND.

Real estate experts assess that the fact that there are "hot" suburban land areas, especially in the context of economic difficulties, investors need to consider carefully. Many areas are bustling but the buyers and sellers are not investors but may have tricks of "land brokers". It is not excluded that in auctions, there may be investors pushing up prices to increase the prices of surrounding land for profit.