Nghe An: Rural land prices increase rapidly

Rural land is "expensive" for customers

Building infrastructure for land auction in Yen Thanh town, Photo: Van Truong

Recently, at the People's Committee of Dong Son commune, Do Luong district, an indirect auction of 43 land lots took place. This land was previously an abandoned brick and tile production area, now planned for land auction, thought to be difficult to sell but at the auction there were over 400 customers participating.Plots of land from 154 m²up to 303 m², starting price from 5 - 9 million/m²However, after the auction, there are lots of land over 20 million/m2.². With 43 plots of land starting at 49,461 billion VND, after auction it reached 89,416 billion VND (exceeding 39 billion VND, reaching 80.78%).

Genderreal estate businessIt is believed that with the price over 20 million/m²Many people can also easily buy 200 m²Land adjacent to the road in wards Truong Thi, Quang Trung, Le Mao... Vinh city. And with the location 200 m²Land in Dong Son commune, Do Luong district, if you spend that amount of money to own and use it, the price is too high. Mr. Nguyen Van Dung in Do Luong town, an auction participant, shared: "I thought that the impact of the Covid-19 epidemic would keep the land price stable, so I "bid" indirectly for 15 million VND/m²but still failed".

The representative of the People's Committee of Do Luong district added: The reason for the "fever" of rural land is that customers from everywhere come to buy, not just in Do Luong area (they mainly buy for speculation), not to mention that some credit policies have been loosened.

Right at the market and town points, people have increased demand to buy for commercial services. Therefore, right at the transaction sessions, the auction winners can sell on the spot. Another reason is that the infrastructure of land auction areas in Do Luong is invested quite synchronously from the road system, electricity, traffic... very convenient, so it also attracts buyers. From the beginning of 2020 to now, Do Luong has auctioned land for 120 billion VND, expected to reach 140 billion VND by the end of this year (exceeding the target assigned by the province by 15-20%).

In the districtYen Thanh,Rural land is also very active. For example, in Tang Thanh commune, Yen Thanh, recently an auction was held for over 30 plots of land but there were over 300 participants in the auction. The starting price was only 500 - 600 million VND/plot but through the auction it was "pushed" up to 1.2 - 1.6 billion VND/plot.

Mr. Dao Van Khai - Chairman of the People's Committee of Tang Thanh Commune shared: Although the land is only along the inter-hamlet road, making it difficult for business, the price is still high because the land fund in the commune has gradually narrowed, combined with the increasing demand for housing.

People buy land in Hung Hoa commune, Vinh city. Photo: Van Truong

Not only is the land auction exciting, but there are also many transactions of buying, selling and transferring land after the auction. Mr. Tran Van Tinh in Yen Thanh town said: Land bought back after the auction also has a very high price, I bought back a 170 m2 plot of land²In block 4 of Yen Thanh town, a man built a house for his child for 2.4 billion VND, while in 2019, they auctioned it for only 1.9 billion VND. Not to mention that many other plots of land in remote communes such as Tien Thanh, Ma Thanh, Quang Thanh were also bought and sold quite busily after the auction.

According to the report of the Yen Thanh District Land Use Registration Office, there are about 15-20 land transfer contracts every day. Yen Thanh used to be a hot spot in land auctions due to the situation of "brokers" colluding and lowering prices. Since changing the auction form from direct to indirect voting, money into the budget has increased and land has reached the hands of people with real needs.

According to the report of Yen Thanh District People's Committee, in 2020, the province assigned Yen Thanh district 140 billion VND in land. However, in the first 11 months of 2020 alone, Yen Thanh sold over 280 billion VND in land. It is known that the reason for the increase in land prices in Yen Thanh is because people's lives are increasingly improving. Yen Thanh has many communes with a number of workers sent abroad to buy land for storage. Not to mention that the infrastructure of the land auction area is invested synchronously, so the land value is also "pushed" up.

Not only in Yen Thanh, Do Luong, Quynh Luu districts but also in communes in the neighboring areas of Vinh city such as Nghi Thai, Phuc Tho, Nghi Phong, Nghi Xuan (Nghi Loc district) also increased compared to before, with quite a lot of transactions.

Continue to tighten land auction management

It can be said that, the implementation of the form of land auction by indirect voting after a period of initial implementation has brought about some positive effects such as: Security and order are ensured; overcoming the situation of "brokers" and "gangster" nature causing chaos in localities where land auctions are organized; people with real need to buy land have actually bought the land they need, contributing to reducing pressure on localities.

The rate of bidding exceeding the starting price is high (an average increase of 20-30%), increasing the State budget revenue; the work of collecting applications and organizing land auctions is simpler and faster than direct auctions. Thereby, showing the attention to solving pressing problems of Party committees and authorities at all levels, creating trust among the people, fairness and objectivity in land auctions in the whole province.

However, this form still has shortcomings, some property auction organizations lack experience in handling some situations during the process of receiving documents and announcing results.land auction. Most people do not grasp the market price, so it is difficult to determine the price to pay to win the auction. The issue of customer information security has not been achieved, because although the auction is by indirect voting, the current regulations on the sale of auction participation documents and the security of information of auction participants are the responsibility of the auction organization.

The regulation that land auction participants must register with the auction unit which land lot they will be bidding on before voting creates a loophole for “land brokers” to bargain and arrange with buyers. These shortcomings are being studied and advised by relevant sectors to complete institutions to overcome the current shortcomings in land use rights auctions.

Building infrastructure for land auction in Do Luong. Photo: Van Truong

In order to improve the effectiveness of land use rights auctions, the People's Committee of Nghe An province requests the Department of Justice to strengthen propaganda and widely disseminate the contents of the Law on Property Auctions and documents guiding the implementation of the law. Continue to strengthen State management, coordination in inspection, examination, supervision, guidance, and resolution of difficulties and problems in land use rights auctions for timely correction; detect and handle according to authority or request competent authorities to handle cases of property auction organizations, auctioneers, auction participants and organizations and individuals who violate the law in property auctions.

Along with that, direct and supervise property auction organizations in the province; post auction information on the province's electronic information portal and the Ministry of Justice's portal so that individuals and organizations have more information to register to participate in the auction... The provincial police direct functional departments, district and commune-level police to strengthen the work of grasping the situation, ensuring security and order at land use rights auctions; promptly detect and strictly handle violations of the law in land use rights auction activities according to the provisions of law.

In addition, in order to ensure publicity and transparency in the auction process, and at the same time have a basis to handle violations of legal regulations, the People's Committee of Nghe An province requires auction organizers to install the entire security camera system before organizing the auctions.

Many localities have not complied with the regulations of the Provincial People's Committee in land auctions.

(Baonghean.vn) - According to the Provincial Land Fund Development Center, although Decision No. 12/2018/QD-UBND, dated March 2, 2018, stipulates the responsibility of the District People's Committee to compile a list of annual land use rights auction projects in the area, most localities have not yet implemented it.

'Brokers' still appear in land auctions in Cua Lo town

(Baonghean.vn) - Reflecting to the Legal Committee of the Provincial People's Council at the supervision of land use rights auctions, a representative of the People's Committee of Cua Lo town said that the implementation of land auctions in the form of direct auctions, people who do not need to buy land also participate in land auctions, distorting the market and causing chaos in security and order.