Nghe An: Many people abandoned deposits of hundreds of millions, 'fleeing' from auctioned land lots

18/32 auctioned land lots in the planning area of ​​Nhan Thanh commune, Yen Thanh have had their deposits "abandoned". Photo: Van Truong

Mr. Nguyen Si Tung - Chairman of the People's Committee of Nhan Thanh Commune (Yen Thanh) said: At the end of March 2021, Nhan Thanh Commune, Yen Thanh District organized an auction of 32 land lots, starting price over 600 million VND/lot, each set of documents to participateland auctionmust deposit 100 million VND. In the auction, there were over 200 applications from people everywhere participating. Through the auction, the land price was pushed up more than double the starting price, reaching from 1.2 to 1.5 billion VND.

The deadline for paying the auction winning money is April 26, however, up to this point, only 18/32 plots have been completed. Mr. Nguyen Si Tung added: The plots that won the auction but did not pay according to current regulations have been submitted to the competent authority to cancel the results and re-auction the land. The deposit of 100 million VND of the plots that won the auction but did not fulfill their financial obligations by the deadline will be transferred to the State treasury according to regulations.

Mr. Nguyen Tho Sac - a resident of Nhan Thanh commune shared: "Land brokers in Dien Chau after winning the auction offered to sell to us, but because the land price was too high, over 1.2 billion VND, we could not buy it."

Also in the above situation, in early April 2021, the People's Committee of Ma Thanh commune auctioned 36 land lots. According to regulations, on May 3, financial obligations for the auctioned land lots must be fulfilled. However, only 12/36 land lots fulfilled their financial obligations, the rest accepted to "abandon" their deposits.

Although the infrastructure for planning the land auction area in Yen Thanh town has been invested synchronously, due to the impact of the epidemic, it is very difficult to sell. Photo: Van Truong

Mr. Bui Trong Long - Secretary of the Party Committee of Ma Thanh commune shared: The reason for abandoning the deposit of hundreds of millions of dong to "run away" from the auctioned land lot is because some speculators pushed the land price up too high, then could not resell it; there was a land lot with a starting price of over 700 million dong but the subjects pushed it up to over 2 billion dong.

Currently, Yen Thanh district has about 40 remaining land lots after auction, concentrated in the communes of Nhan Thanh, Ma Thanh, Khanh Thanh, Vinh Thanh...

Ms. Dang Thi Dung - Head of Finance DepartmentYen Thanh districtsaid: For land lots that are past the deadline for completing financial obligations, the communes will submit to the District People's Committee to cancel the auction results due to violations of regulations. These land lots will be included in the auction plan in the following period.

Do Luong district is also struggling because of land investment, typically Mr. M. in Do Luong town, during the recent "virtual" land fever, invested and borrowed money to buy more than 10 plots of land worth over 10 billion VND in Lac Son commune, Do Luong with the hope of quickly making a profit. However, the real estate market is frozen, no one buys the land for sale, even selling at the same price as the original price, while having to bear the daily interest on bank loans.

Land in Do Luong district is very difficult to trade in the current sluggish market. Photo: Van Truong

According to the report of the Department of Natural Resources and Environment of Do Luong district, up to this point, the whole district has more than 20 land lots that have won the auction but "abandoned the deposit", concentrated in Lac Son commune, Do Luong town, Thuong Son...

At this time, real estate prices in many places are not reflecting their true value. Therefore, experts recommend that real estate investors pay attention to product pricing to determine investment prices appropriate to the market, minimizing risks.

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