The Ministry of Construction said that many localities are promoting the organization of land auctions in urban areas and new residential areas, bringing a positive impact to the market. However, experts also warn of "virtual fever" and the risk of losing safety.
Massive auction of land
Reporting on the housing and real estate market situation in the first quarter of 2024, the Ministry of Construction said that according to survey assessments, after the Lunar New Year holiday in some areas, selling prices increased slightly and transactions were quite hot. Dynamically, the organization of land auctions in urban areas and new residential areas has been implemented by localities more than the same period in 2023.
In Hanoi, the People's Committee of Chuong My district organized an auction for the right to use 44 adjacent plots of land (area from 170-360m2/lot) belonging to the Van Son lake golf course resettlement project, Hoang Van Thu commune at a price starting from 5.5-8 million VND/m2;
Dong Anh District People's Committee organized an auction of 72 plots of land (area from 87.5-167m2/lot) belonging to the technical infrastructure construction project of Thuy Lam commune's land use rights auction area with starting prices from 23,000 VND. 5-24.5 million VND/m2.
Son Tay Town People's Committee also organized an auction of 31 plots of land (area from 94-140m2/lot) under the Project of Construction of technical infrastructure land auction of land use rights in Van Gioi - Dong Quan area with starting prices. score from 28-33 million VND/m2.
Many localities have promoted the organization of land auctions in urban areas and new residential areas recently,
It is known that land auctions in Hanoi recently attracted great attention from investors. Accordingly, Quoc Oai district has just successfully auctioned 34 plots of land belonging to 3 ĐG02 projects; Stage 08 of Khanh Tan village, Sai Son commune and Stage 06 of Can Huu commune with a total area of 3,100 m2 were held on April 25 with more than 150 participating customers.
The starting price for the lowest plot is 24.8 million VND/m2, the highest plot is 52.8 million VND/m2. The auction successfully sold all 34 plots of land. Among them, the highest winning auction plot was at 74.1 million VND/m2, a difference of more than 21 million VND/m2 compared to the starting price. The land plot with the lowest winning price is 28 million VND/m2, higher than the starting price of more than 3 million VND/m2.
At the end of March, Me Linh district also successfully auctioned 30 plots of land, of which, some plots reached more than 50 million VND per square meter, nearly double the starting price. Or at the end of February, 33 plots of land in Thuy Lam commune, Dong Anh district were all successfully auctioned, including one lot that was double the starting price of more than 60 million VND per square meter.
In Binh Dinh, the Provincial People's Committee approved the auction of 84 plots of land (area from 105-135m2/lot) at the northern residential area project of social housing in Nhon Binh ward with a starting price of 15-21.6 million VND /m2; 23 (area from 140/158 m2/lot) land lots at Binh Tuong Commune Resettlement Area project with starting price of 6.6-10.2 million VND/m2; 15 lots of land (area from 124.5 ÷ 362.5 m2/lot) in Long Van new urban area with starting price of 19.2-25.2 million VND/m2; 9 plots of land in the Resettlement Area serving the project to upgrade and expand National Highway 1D with starting prices of 14-18.6 million VND/m2; 12 plots of land in the Resettlement Area serving the Urban - Commercial Area construction project north of Ha Thanh River at a price of 22-26.4 million VND/m2.
The People's Committee of Kien Giang province organized an auction of 167 plots of land on the Cai Tre canal residential area, Kien Luong district with a starting price of 220 million VND/plot and 43 plots of land on the residential line of the sea dyke road through Vinh Quang ward, Rach city. Price.
"This is also considered a factor that can help make the land market more vibrant in the near future," assessed the Ministry of Construction.
Avoid forming virtual land fevers
The Ministry of Construction also said that in terms of transaction volume in the land segment, in the first quarter of 2024 there will be an increasing trend compared to the fourth quarter of 2023. Accordingly, the amount of land transactions is equal to 119.86% compared to the fourth quarter of 2023 (in the fourth quarter of 2023, there were 81,476 land transactions) and 145.18% compared to the same period in 2023.
Meanwhile, the real estate market report for the first quarter of 2024 and forecast for the second quarter of 2024 of the Vietnam Association of Real Estate Brokers (VARS), assessed many areas with a sudden increase in land transactions, especially plots of land that have been separated.
In particular, more and more investors appear to be "hunting" for land in the suburbs of large cities, localities with strong infrastructure development and high urbanization rates.
Although the successful transaction price decreased by 20-30% compared to the fever peak, it gradually stabilized and showed no signs of further decline. Compared to the fourth quarter of 2023, the price increased by about 5%. Particularly, the market near Hanoi and attached to industrial parks has an increase of 10-20%.
However, VARS also issued a warning to pay close attention to avoid forming "virtual fevers", posing a risk of losing safety, while the market is still in the process of recovery.
