Land auction in Vinh city: Positive signs

(Baonghean) -In previous years, the land market in Vinh City was bustling, with every house selling land, every person buying land, and land prices in the suburbs skyrocketing. In two years (2011, 2012), the real estate market was frozen, causing heavy damage to the city's economy. However, since 2013, thanks to the reasonable exploitation of land funds to serve those with real housing needs, in the first 11 months of the year, the city has successfully auctioned 128 land lots, reaching 135 billion VND. It is expected that by the end of 2013, land auctions in the city will reach 200 billion VND.

A corner of Pham Dinh Toai Street (Vinh City) was formed from planned land.

During the land auctions in 2013, many people, especially young families, participated in the auctions to build houses. Mr. Nguyen Van Thinh, from Thanh Chuong, currently works in Vinh City. Because he does not have a house, he and his wife submitted an application to participate in the land auction in the planning area of ​​Mau Don hamlet (Hung Loc commune) with an area of ​​155m2.², the price after the auction was 877 million VND. Ms. Huong - a customer in Nghia Dan also successfully participated in the auction of a land lot in the planning area in Yen Khang, Yen Xa - Hung Dong, the price was less than 4 million VND/m2. Mr. Canh, a newly married Vinh City Police officer also successfully participated in the auction of a lot in Hung Loc with the price of over 5 million VND/m2.². A winning bidder named Dat said: "The prices of the plots of land have dropped lower than in 2012, plus the area is moderate, not too large, I was able to buy a plot at a price close to the market price."

Mr. Bach Hung Hau - Deputy Director of Nghe An Auction Center, a unit participating in land auctions in the city, said: In Hung Loc, the center auctioned 12 land lots with up to 130 registrations and 100% were sold out after the auction. Land prices in Hung Loc range from 5 to 5.5 million VND/m2.², and in Hung Dong only from 3.2 - 4.2 million VND/m²”. Mr. Pham Van Hao - Chairman of the Board of Directors of Nghe An Property Auction Joint Stock Company - the main seller for Vinh City Land Fund Exploitation Center, said: Currently, people do not "prefer" project land and turn to find land auctioned by the State because they feel more secure, after buying, they will be granted a certificate immediately. The province has also approved reasonable prices and the city focuses on investing in adequate infrastructure, so land buyers have convenience when building houses. Currently, people buy for the purpose of use, not for speculation. Since the beginning of the year, the company has also sold more than 100 plots of land in the city.

For Vinh City Land Fund Exploitation Center, successful land auction is a heavy task in the current frozen market context, the city's budget revenue does not meet the plan. But good news is continuously updated: In January 2013, Vinh City Land Fund Exploitation Center successfully auctioned 14 billion VND from the land auction planning area of ​​block 3, Trung Do ward; 6.8 billion VND from the Yen Khang planning area, Yen Xa - Hung Dong; and another 4.4 billion VND in the Quan Bau planning area.

In March, the successful land auction earned 4.8 billion VND, in April, an additional 3.4 billion VND. The peak was in September 2013, with over 60 billion VND successfully auctioned, including many areas with active auctions such as Canh Phuong Nghi Phu field with 31.7 billion VND, Vinh Tan area with 8.3 billion VND, Hung Loc with 6 billion VND... Summary up to the end of November 2013: land auction companies in the city have auctioned 128 land lots out of 274 planned lots. From now until the end of 2013, the city will continue to auction the remaining land lots such as: 15 lots in Block 3, Trung Do Ward, 7 lots in Hung Phuc, 84 lots in Yen Khang, Yen Xa - Hung Dong, 40 lots in Vinh University Resettlement Area, 15 lots in Hung Dung. And it is expected to collect 200 billion VND from land auctions in 2013.

Land auctions, along with other land revenues, have improved compared to previous years, contributing to raising the total revenue from land use fees in the first 11 months of 2013 of the whole province to 460 billion VND, reaching 110% of the ordinance estimate, up 10% over the same period. The revenue is mainly from Vinh, Nghi Loc, Yen Thanh, Do Luong, Thanh Chuong...

Discussing the reasons for the city to achieve the above encouraging results, Mr. Nguyen Hoang Minh - Director of Vinh City Land Fund Development Center said: The city has planned and built a diverse land fund in advance and announced the plans. Timely investment in infrastructure in planning areas in the area. Using land use money to invest in infrastructure. The city is also determined in implementing land auctions. The land price at this time is suitable for people with real land and housing needs and has also attracted a large number of applications. Implementing plot division suitable for the budget of people with average incomes with an area of ​​100 - 150m2², price for many lots from 3 to 5 million VND/m²should be suitable for many subjects with land purchase needs.

However, the land auction process is currently facing many difficulties: The starting price currently decided by the province is still higher than the market price, so it is not attractive to people to bid. Regarding the auction process, according to Decision No. 37 of the Provincial People's Committee, it is stipulated that from the second round onwards, the bidding step of the next round is the highest bid of the previous round plus at least 1%, the highest is 2% for the highest bidder of the previous round. The person who pays the highest price of the last round according to the above regulations is the auction winner. According to many people, this auction step should be regulated with a wide range of 2% to 15% of the value to limit brokers. Another limitation is the situation of many brokers without a solution to prevent them due to the lack of sanctions for detection and handling. There are no regulations on checking and supervising the reception of documents and conditions before the auction. In addition, it is necessary to regulate the deposit higher than 15% to limit brokers.

Regarding public announcements on mass media, many companies believe that in addition to posting announcements on Nghe An newspaper and Radio and Television, it is necessary to widely propagate in wards and communes through loudspeaker systems so that people know.

According to Mr. Pham Van Hao - Chairman of the Board of Directors of Nghe An Property Auction Joint Stock Company, the purchasing power at the auctions was vibrant because the auction land prices this year were lower, people were more confident when buying land from the State, and the propaganda work was better, so the auctions were also successful. However, the real estate market is still sluggish. Therefore, to remove difficulties for the real estate market, synchronous solutions from all levels of government are needed.

Article and photos: Chau Lan