‘Hot’ Land Auctions in the Outskirts of Hanoi

The real estate market, especially the land segment, is facing challenges in 2023. However, despite the difficulties, land auctions in many districts and suburban areas of Hanoi continue to attract attention due to their favorable location, well-developed infrastructure, and clear legal framework.

For example, a recent land auction in Dong Bang village, Dong Thai commune, Ba Vi district, attracted nearly 90 participants. This was the first land auction of the year in Ba Vi district, and it saw a large number of potential buyers compared to previous auctions in 2023. The auction included 29 land plots with starting prices ranging from 22.3 to 46.3 million Vietnamese dong per square meter. These plots had well-developed infrastructure, were located near National Highway 32, and were only about 5 kilometers away from the district center. Out of the 29 plots, 28 were successfully auctioned, with the highest bid reaching 47 million Vietnamese dong per square meter.

Các cuộc đấu giá đất đầu năm đều thành công (ảnh: N.M).

In Dong Anh district, an auction was held for the use rights of land plots in the LK6 area of the Thuy Lam auction land project. The purpose of the land use was for long-term residential construction, with a building density ranging from 76% to 100% and a maximum height of 5 floors. The auctioned land consisted of 33 plots with sizes ranging from 80 to 120.4 square meters. The starting prices ranged from 23.5 to 29 million Vietnamese dong per square meter, depending on the location. All the plots were successfully auctioned, with the highest bid reaching 61 million Vietnamese dong per square meter. The total revenue generated from the auction exceeded the initial estimated price by more than 143 billion Vietnamese dong.

In the coming days, there are several more land auctions scheduled in different districts. For example, in Phuc Tho district, there will be an auction for the use rights of 14 plots of land in the Dong Tre Lo Gio area of Vong Xuyen Xa on March 15. The starting prices for these plots are 17.2 and 18.5 million Vietnamese dong per square meter.

Similarly, Hoai Duc district will hold an auction for the use rights of 23 plots of land owned by the district People’s Committee on March 18. These plots are located in the Ma Trau area of Dong Nhan village, Dong La commune. The total area of the auctioned land is 2,441.8 square meters.

Meanwhile, Me Linh district will auction 19 plots of land on March 16. These plots are located in Chu Tran village, Tien Thinh commune, and are intended for long-term use. The starting prices range from 23.2 to 30 million Vietnamese dong per square meter.

Despite the challenges faced by the real estate market, land auctions continue to attract investors due to their advantageous features. In the months of March and the second quarter of this year, districts such as Dong Anh, Thanh Tri, Hoai Duc, Phuc Tho, and Me Linh will release new auctioned land plots that have invested in infrastructure and are strategically located near residential areas, connected to main transportation routes, and have well-developed social infrastructure to meet the demand for modern and civilized new residential areas.

Expert economist Dinh Trong Thinh believes that after a period of high prices, the real estate market in major cities such as Hanoi and Ho Chi Minh City has experienced a simultaneous decline. However, the high population density in these areas has resulted in a shortage of housing. Therefore, there is a significant demand for real estate, and positive news about market recovery has stimulated investors’ buying and selling activities. However, Thinh also cautions about the possibility of speculation driving up prices.

In conclusion, land auctions are still a leading product in the land market in 2024. With the improving prospects of the real estate market and the return of investor confidence, districts like Dong Anh, Thanh Tri, Hoai Duc, Phuc Tho, and Me Linh will continue to bring new auctioned land plots to the market. These plots have well-developed infrastructure, are strategically located near residential areas, and have integrated social infrastructure, facilitating the development of modern and civilized new residential areas.