Nghe An land auction market is bustling again?
After a period of silence due to lack of buyers, some land plots near Vinh city and districts have resumed auctions and attracted investors.
Many unsold lands have been purchased.
The residential land subdivision planning area in Kim Trung hamlet (location 3), Nghi An commune (Vinh city) after 9 auction announcements (in 2023, 5 announcements were made with only 1 lot sold and in 2024, 4 announcements were made with no buyers), on September 23, the auction service organization sold 31 lots out of a total of 66 lots here.
Mr. Chu Van Mai - Chairman of Nghi An Commune People's Committee said: Due to the high starting price of land, the auction unit, IPA International Auction Joint Stock Company, requested the commune to report to the City People's Committee for consideration of a reduction. Based on market developments, as well as some other areas, Vinh City People's Committee agreed to adjust the Kim Trung planning area to reduce the starting price by 10% compared to before, thus creating a boost to the market.
In the first auction in September, the commune put 31 lots up for auction again and there were 143 applications participating in the auction, 31 lots were sold for a total of more than 70 billion VND. The lots sold increased on average by 10% compared to the starting price. It is expected that the remaining 35/61 lots in the residential land subdivision planning area in Kim Trung hamlet will continue to be auctioned on October 4.
In Quynh Luu district, after some errors and violations in the land auction at Dong Quan planning area, Quynh Hung commune, last September, the district resolved and reorganized the auction areas that had no buyers before. As a result, at Dong Quan planning area, Quynh Hung commune, the district successfully auctioned 23 land lots, the auction amount was nearly 43 billion VND, an increase of 8.9 billion VND compared to the starting price.
Mr. Ho Huu Hung - Head of the Justice Department of Quynh Luu district shared: Due to errors in the land auction in Quynh Hung commune, the auction work in the district had to stop for a while to review the entire process. In 2024, the district did not have many new planning areas put up for auction. However, the results of the re-auctions of the remaining areas were still positive. Specifically, in addition to 23 land lots in Quynh Hung commune, in September, the district put up 10 land lots in Quynh Lam commune for auction and after 3 times, there were a few lots left. Similarly, some of the 62 land lots in the planning area auctioned in Quynh Giang commune that were still pending from 2023 after 9 auctions, the purchase price increased with a reasonable starting level of 10-13%.
Suburban land prices increase
The most exciting event recently was the planning area in Hamlet 1, Nghi Phong Commune, Nghi Loc District, when the commune put 114 lots up for auction and had 1,600 applications. As a result, 113/114 lots were sold (1 lot is pending appeal). With each lot planned to have an area of 180-220m2, after the auction, the lowest lot was 1.8 billion VND, the highest was 3.7 billion VND, an average of 2-3 billion VND/lot.
Mr. Nguyen Cong Anh - Chairman of Nghi Phong Commune People's Committee said: The commune planned this area as originally planned with 131 lots, but currently only 114 are for sale. The advantage of Nghi Phong commune in general and the auction planning area in hamlet 1 in particular is that it is close to the 72m Vinh - Cua Lo road. The commune also has Provincial Road 535, coastal road and national highway passing through, so it is very convenient. During the land fever in 2021-2022, many plots of land in Nghi Phong commune along the inter-commune road had prices from 15 million VND or 20-25 million VND/m2, the highest is 30-35 million VND/m2.
Mr. Nguyen Thanh Hai - Head of the Finance and Planning Department of Nghi Loc district said: The recent auction results correctly reflect the district's assessment and the department also advised the district to closely monitor the auction process, ensuring that no errors occur.
The reason why this planning area attracts investors and the price increases by about 40% compared to the starting price is because this is a well-planned area with a convenient infrastructure system. This area has a fairly good planning, specifically about 300m near Vinh University, Campus 2, about 1km connected to National Highway 46, and 1km near Vinh - Cua Lo Boulevard. The planning location of the auctioned land plot is on both sides of the newly planned road 30m wide, these planned roads connect conveniently with the coastal routes, Vinh - Cua Lo. Next year, Nghi Phong commune is expected to be merged into Vinh city according to the Vinh City Expansion Project. It is also reasonable for many investors to buy land in Nghi Phong commune at this time when they have the finances.
The representative of the Department of Finance and Planning of Nghi Loc district also informed: In addition to the planning area in Nghi Phong commune, in the near future, the district will have a number of planning areas in Nghi Truong and Nghi Trung communes...
Mr. Tran Ngoc Tu - Chairman of Vinh City People's Committee said: "According to the planning, the future administrative center of Vinh city will be located on Vinh - Cua Lo road, the area near Nghi Duc and Nghi Phong communes, the new Vinh city center will move down to this area, balancing between the two urban areas of Vinh and Cua Lo".
This, together with the advantages of transportation such as the North-South expressway, the newly opened Vinh - Cua Lo road and the fishbone road system on both sides of Vinh - Cua Lo road, can be said that the prime land area in the future is very attractive to real estate investors.
Meanwhile, Mr. Ho Sy Hai - Vice Chairman of Nam Dan District People's Committee said that there is still land speculation and price inflation. Recently, in the land auction in Nam Anh commune, the starting price was only 415 million VND, but the winning price was 3.5 times higher, which is not normal. After winning the auction, many individuals filed complaints and abandoned their deposits, giving unreasonable reasons, forcing the district to intervene to resolve the consequences. The district's approved price is close to the market, and the auction is slightly higher. However, there is a situation where the floors have dozens of people organizing, manipulating prices, and every lot is present to bid higher, which is not true in Nam Dan district.
Mr. Ho Sy Hai also said: Nam Dan land is currently attractive to investors because of its good price compared to other localities such as Vinh City. Nam Dan has a new belt road in the North of Nam Dan district, which is beautiful, airy, and convenient for travel. In addition, the Yen Xuan flood area used to have very low prices, but now there is a new Yen Xuan bridge and the 5 Nam flood crossing road, which has promoted real estate in this area to warm up.
Returning to Nghi Loc district, at the planning area of hamlet 1, Nghi Phong commune, auctioned on the afternoon of September 24, out of 113 auctioned lots, 2 investors from outside the district won 15 lots each; 1 investor from Vinh city won 12 lots. That also reduced the opportunities for local people with real demand for residential land.
Mr. Nguyen Trung Long - Head of Price Department, Department of Finance said: The starting land price for land use rights auction in the districts is currently approved by the districts, so it is necessary to bring it close to the market and have measures to control the price. The starting price for land use rights auction is based on Articles 156 and 160 of the 2024 Land Law...
Nguyen Hai - Tran Chau
