Rural land auctions: why is it "hot"?

“The highest bid for the lot was the corner lot, priced at 133.3 million VND/m2. The lowest lot was also 92 million VND/m2. Now people have put in a lot of money, about 50%. That day, the lot for the lot of 133 million VND was auctioned for 9-10 rounds, then they stopped bidding and had to draw lots.” - Posing as an investor buying land, the reporter was led by a broker named Van to introduce the auctioned land in Long Khuc village, Tien Yen commune, Hoai Duc district, Hanoi .

At the end of August 2024, the Hoai Duc district government organized an auction that is said to have set the most records ever for land in rural areas such as: The largest number of participating applications, the most "record" auction (9 rounds, lasting 19 hours, from 9:00 a.m. the previous day to nearly 5:00 a.m. the next day), the highest winning bid - 18 times higher than the starting price.

Auctioned land plot in Long Khuc village, Tien Yen commune, Hoai Duc district, Hanoi

No one could have guessed that land prices in the "village" would be so high.

Hundreds of millions of VND/m2 of land in rural areas, of course people in villages and communes - where the main livelihood is farming - cannot afford to buy land. They assert that "the whole world, but the villagers, do not have much money to invest."

Immediately after the auction ended, many brokerage floors "sprouted" up next to the land with advertising signs of all sizes, stretching from the beginning to the end of Long Khuc area.

A real estate broker named Van said that some auction winners also went to these real estate offices to "consign" their goods: "They resold them at a higher price. The last auction had a small difference, only 200 million VND/piece, but this time the difference is higher because they have put in all their money."

When seeing "customers" wondering about the price, H. - another real estate broker said that the land here is "worth every penny", because this place has a very prime location, nowhere else has it:

This area is close to several major roads such as Thang Long Avenue and there is a project to build Ring Road 4 connecting with many major traffic routes. From here to Hanoi Children's Hospital and the National Maternity Hospital in Quoc Oai area is less than 10km. Moreover, the land in Hoai Duc area is higher than Quoc Oai because it is in a protected area. If there is a flood, it usually flows to the other side of the Day River. This area also has 2 large, cool lakes and a soccer field.

As planned, on November 4, the second auction will be held at this same place. Like the previous time, the sales records have also reached a record, more than anyone else, real estate brokerage offices are eagerly waiting for the "goods". Brokers said that as soon as the second round was scheduled, many people came down to see the auctioned land and residential land of the village.

As long as customers have demand, these real estate brokers are willing to introduce to customers many other real estate products in Hoai Duc district such as residential land, service land, garden land... Even the real estate brokers themselves are surprised that the land in their village is "so valuable":

Land prices in my village are skyrocketing. I still remember last year the land price was just over 40 million VND/m2, but now the land in the village, where cars can go, has gone up to 80 million VND/m2.

Is the price of rural land in Hoai Duc district “inflated”, when land is “anchored” at a high price, does it affect social security in the area? What is the government doing to make land auctions public and transparent, and to avoid the situation of “abandoning deposits” when winning the auction? We will return to this issue in a recent program.

Source: https://vov.vn/kinh-te/bat-dong-san/dat-dau-gia-o-nong-thon-vi-sao-nong-post1132694.vov