Article 1: A "boost" for the real estate market
(Baonghean)The dissolution of land use rights auction councils at the provincial and district levels, and the assignment of land use rights auctions to professional auction organizations, is an important step towards ensuring that asset auctions are conducted openly, transparently, honestly, and fairly, contributing to the "socialization" of auction work.
In accordance with Government Decree No. 17/ND-CP, Circular 23/TT-BTP, and Decision 216/QD-TTg on the promulgation of regulations on auctioning land use rights for land allocation with land use fees or land lease, on August 1, 2012, the Provincial People's Committee issued Decision 37/QD-UBND promulgating regulations on auctioning assets in Nghe An province. Accordingly, the decision dissolved the Land Use Rights Auction Council at the provincial and district levels and assigned the auctioning of land use rights to professional auction organizations. After one year of implementing the transformation of the land use rights auction organization model, positive results have been achieved.
Housing construction in Hung Loc Ward Project - Vinh City
To effectively carry out the task of organizing land use right auctions with land use fees, Nghe An province has 5 professional auction organizations: the Asset Auction Center (under the Department of Justice), the Lottery Company (which has been converted into a multi-sector enterprise with asset auction services), Phu Quy Auction Joint Stock Company, Nghe An Auction Joint Stock Company, and Nghe An Auction Limited Company. Currently, 13 districts, cities, and towns have signed contracts to transfer land funds to professional auction organizations for auctioning, while 7 mountainous districts – Quy Hop, Tan Ky, Quy Chau, Que Phong, Con Cuong, Tuong Duong, and Ky Son – have not yet put their land funds up for auction.
A major challenge for land use rights auctions is that after the transition to a model where auctions are conducted by professional auction organizations, the real estate market froze, resulting in many land plots failing to attract bidders and ultimately failing to complete auctions. Consequently, the operations of these auction organizations faced considerable difficulties. To survive and thrive, each organization strived to improve its operations in order to attract landowners to its auctions. Mr. Pham Van Hoa, Director of the Asset Auction Service Center (under the Department of Justice), stated: “The Center has proactively coordinated with the People's Committees of districts, towns, and cities to receive applications and organize land use right auctions in accordance with the law. Recently, the Center signed 28 contracts with 7 districts for 490 land plots with a starting price of nearly 175 billion VND and successfully auctioned 212 plots with a selling price of nearly 96 billion VND. In addition, through the auctions, the State's legal policies on auction work have been promptly conveyed to local authorities, especially to those participating in land use right auctions.”
Despite operating during a challenging real estate market, there is still a genuine need for land among the population. Because land prices remain high, auction centers have coordinated with relevant authorities to set starting land prices based on the official price list, land price framework, and the actual value of each plot. They have also facilitated the auction process, attracting a significant number of participants. To date, professional auction organizations in the province have signed contracts to sell 1,468 land plots and successfully auctioned 787 plots, generating over 201.5 billion VND in revenue. However, the limited land auction sector in rural areas is currently facing significant difficulties. Only 7 communes in Thanh Chuong, Yen Thanh, and Dien Chau districts have successfully auctioned 25 plots of land. This is due to the low number of eligible participants.
According to an official from the Department of Justice: Professional auction organizations generally comply with the law and the province's regulations on asset auctions. Contract signing, auction advertising, application processing, deposit collection, and participation fees are all conducted in accordance with regulations. All land auctions are conducted by auctioneers following the correct procedures, and there have been no complaints regarding the land use rights auction activities of professional auction organizations. The transformation of the operating model in land use rights auctions not only contributes to a healthier land use rights auction process but also provides a boost to revitalize the real estate market.
(To be continued)
Hoang Vinh
