Hanoi re-examines all land auctions in Thanh Oai and Hoai Duc.

Before August 25, the Hanoi Department of Natural Resources and Environment must report to the City People's Committee on any violations of the law (if any) in recent land auctions in the suburbs of the capital.

Recently, the Hanoi People's Committee issued Document No. 2771/UBND-TNMT on inspection, detection and handling of violations of the law related to unusually high auction results for land use rights in Hanoi.

Many people question whether land auction teams are deliberately "inflating" local real estate prices. Photo: Nhat Linh

The document clearly states that recently, in the city, there has been a phenomenon of land use rights auctions with winning prices many times higher than the starting price, such as in Thanh Oai district, it is 7-8 times higher, and in Hoai Duc district, it is 18 times higher.

The above unusually high winning bids may affect socio -economic development, investment and business environment, housing and real estate markets.

To effectively carry out state management, ensure the auction of land use rights in accordance with the law, and contribute to stabilizing socio-economic development, the City People's Committee requests the Hanoi Department of Natural Resources and Environment to immediately coordinate with departments and branches including Justice, Finance, City Inspectorate, and City Police.

Accordingly, the city leaders requested that all land auctions in Thanh Oai and Hoai Duc districts in the recent past must be inspected, promptly detected, and resolutely handled for violations of the law (if any); and reported to the City People's Committee before August 25.

At the same time, the Hanoi Department of Natural Resources and Environment presides over and coordinates with the departments and branches: Justice, Finance, City Inspectorate, City Police to review the process, procedures, regulations... on auctioning the right to use of districts, towns.

The Department will have to report to the City People's Committee to direct the implementation of measures to ensure the organization of land use rights auctions strictly according to legal regulations, to be completed before August 27.

The City People's Committee also requested the People's Committees of districts, towns and cities to review all land use rights auctions in the area to ensure compliance with legal regulations; report to the City People's Committee any difficulties and problems beyond their authority.

Speaking to reporters from Dau Tu Newspaper, Ms. Pham Thi Mien, Deputy Head of the Market Research and Investment Promotion and Consulting Department of the Vietnam Association of Real Estate Brokers (VARS), said that the "land fever" in suburban auctions is partly reflecting the situation of supply exceeding demand in the market.

“The market has shown clearer positive signs, especially when new real estate laws have been implemented. However, when cash flow gradually returns to the real estate sector, the supply of land plots is also gradually becoming limited,” Ms. Mien assessed.

Accordingly, the new Law on Real Estate Business has tightened the subdivision and sale of land. Therefore, plots of land with moderate areas and clear legal status, such as the recently auctioned plots, suddenly became more attractive to investors. Taking advantage of the situation, many groups have used tricks to "inflate" real estate prices in the area.

“It is likely that there are groups that are deliberately pushing the price of some plots of land to the peak to create a media effect and orient public opinion. Then, they will make a profit from other plots of land in the area,” Ms. Mien questioned.

In addition, the VARS expert is also concerned that the record numbers from land auctions will be an "excuse" for the residential real estate segment to increase prices simultaneously. This will create a "virtual" price level and cause the market to fall into chaos.

Source: https://baodautu.vn/batdongsan/ha-noi-kiem-tra-lai-toan-bo-cac-buoi-dau-gia-dat-tai-thanh-oai-hoai-duc-d223042.html