How to prevent speculation and price inflation?

Recently, land prices have increased dramatically, especially with consecutive "waves" of auctioned land. Previously, in Hanoi , Hoai Duc district organized an auction of 19 plots of land in Long Khuc village, Tien Yen commune. Among them, there was a plot of land with an offer price of 133.3 million VND/m2 - more than 18 times higher than the starting price. This plot of land has an area of ​​113m2, so the total value is up to 15 billion VND. Meanwhile, in Thanh Oai district, 68 plots of land in Thanh Than village, Thanh Cao commune were auctioned, including a plot of land with an offer price of up to 100 million VND/m2, 8 times higher than the starting price.

Faced with the above-mentioned "hot" developments in the auctioned land segment, the Prime Minister has issued a directive to rectify land auction activities. The Ministry of Natural Resources and Environment has also had to send a team to conduct a surprise inspection of the land use rights auction in Thanh Oai and Hoai Duc districts to check compliance with regulations on determining starting prices, assessing the conformity of the winning auction price with the actual land price on the market; conditions, procedures for organizing land use rights auctions, on-site inspection of the land put up for auction and other related contents.

Experts say that increasing the deposit value will limit speculation, price inflation, and disruption to the real estate market. (Illustration photo)

It can be seen that the above land locations in the two districts are quite far from the center of Hanoi. Although the technical and social infrastructure are not really good, when the auction was held, a "wave" of price increases occurred, making many insiders "dizzy". And, it is understandable to question whether or not there was "price inflation", speculation, and profiteering occurring in these auctions.

Because in fact, in recent times in many auctions in localities across the country, many people participated with the purpose of speculation, willing to put down a deposit to participate in the auction and win with an extremely high price, then willing to forfeit the deposit if they cannot sell it. This is also a concern for localities every time they organize a land auction.

According to regulations, the maximum deposit value is 20% of the starting price. Real estate experts say that this is completely reasonable because a high deposit level will limit those who drop deposits to cause disturbances and influence the results of auctions for personal gain.

However, in reality, due to the determination of a low starting price, too different from reality, the value of the deposit compared to the land price after the auction ends is only 3-5%, even in some cases only corresponding to 1%, this leads to the situation of deposit cancellation for many reasons, maybe due to miscalculation, maybe due to collusion to push up prices... If the deposit price is from 10-20% of the actual value of the won land lots, this situation will not happen. This is considered an effective solution in the context of land plots showing signs of "virtual fever" as today.

Legal experts also believe that the phenomenon of local land price increases in some localities will cause impacts, losing the advantage of attracting local investment capital, disrupting land use planning and affecting the macro economy. Therefore, the authorities need to improve the efficiency of land use rights auctions.

Along with that, in addition to propaganda work, management agencies need to strengthen inspection and supervision of the organization and operation of asset auction organizations, monitor compliance with the law, and comply with the Code of Professional Ethics of the auction team. At the same time, it is necessary to promptly rectify and strictly handle violations, if any, of asset auction organizations, auctioneers and related individuals and organizations.

Source: https://congthuong.vn/tinh-trang-sot-nong-dau-gia-dat-o-ha-noi-phai-ngan-chan-tinh-trang-dau-co-thoi-gia-the-nao-341105.html