Land auction in Nghe An: Less brokers, more prices

Contribute to increasing budget revenue

CollaborateAuction of usage rightsLand use rights (LUR) is a sensitive and complicated field. Previously, although the Law had regulations, due to the lack of specific guidance and monitoring mechanisms, the state management order in this field was loose, leading to disorder.

However, since the Provincial People's Committee expanded the auction of land use rights by indirect means and secret ballot, this activity has really become routine.

Research at the Property Auction Center (Department of Justice) also shows that if in 2018, the land use rights auction was conducted directly, the average selling price only increased by 0.19% compared to the starting price, in which there were localities where the land selling price was almost equal to the starting price. However, in 2019, thanks to indirect auctions and secret ballots, the selling price increased by an average of 34.58% compared to the starting price.

Mr. Dao Xuan Son - Head of the Department of Natural Resources and Environment of Quynh Luu district said: Since switching to indirect land use right auction, although the land lots have not been sold out as planned, the budget revenue has exceeded nearly 50%. In addition to meeting the needs of people who need land, a number of large investors have participated and auctioned sosignificantly reduce the phenomenon of toutsbut very effective.

Authorities check the identity papers of land auctioneers. Photo: Nguyen Hai

Since the land use rights auction switched to indirect secret ballot, the results have been very clear. Not only has the phenomenon of brokers running rampant and causing disorder at land auctions in localities been reduced, but the revenue for the budget has also increased significantly.

Mr. Bui Thai Tho - Head of Judicial Support Department, Department of Justice

According to the report of the Department of Finance, up to this point, the whole province has auctioned land at 1,854 billion VND/yearly plan of 2,500 billion VND. In districts such as Quynh Luu, Do Luong, Yen Thanh, Dien Chau, Nghi Loc, Vinh City... many land lots have auction rates with selling prices increasing by 30-50% compared to the starting price, contributing significantly to increasing budget revenue.

Due to investment in basic infrastructure and favorable location, the land lots put up for auction in Quynh Hong commune have increased in price by one and a half to double the starting price. Photo: Nguyen Hai

Strengthening supervision and transparency

Although the initial auction work under the new regulations has brought about efficiency, it is not without limitations and shortcomings. From the actual observation, research and reflection of the people, there are still many concerns and worries.
First is the capacity of organizations participating in land auctions. Currently, Nghe An has 22 established auction enterprises, including 1 Property Auction Service Center under the Department of Justice and 21 enterprises. However, most of the enterprises operate in many fields and only a few specialize in auctions.

That is why recently, there have been businesses and land auction companies that have brought unqualified people into the company and colluded with land brokers during the auction process to make profits. Some subjects were caught red-handed by the investigation agency, forcing the Department of Justice to submit to the Ministry of Justice to revoke the certificates of some auctioneers, and fine 3 auction organizations and 4 individuals for violating auction activities.

Due to investment in basic infrastructure, the land plot in Hamlet 5, Nghi Phu Commune with dozens of lots put up for auction will bring revenue to Vinh City's budget. Photo: Nguyen Hai

In addition, currently, the deposit rate for each plot of land is quite high (not more than 20% of the starting price of the plot of land), but the regulations on receiving deposits for land use rights auctions are not clear. Some localities authorize land auction organizations to receive them, but some localities assign banks to receive them. This causes a lot of concern.

Mr. Phan Xuan Vinh - Vice Chairman of Dien Chau District People's Committee shared: There was a time when the district organized auctions for hundreds of land lots, each lot costing an average of 1-1.5 billion VND, so the deposit was very large. If a reputable auction organization accepts the deposit, then you can rest assured and vice versa. Therefore, there should be a regulation to assign the local bank to collect the deposit. When coming to the auction, people present papers and if they do not win, they must confirm so that people can come and get their deposit back in the most convenient and fastest way...