Billion-Dollar Bust: Hanoi’s Suburban Land Lots See Deposits Forfeited After Record-Breaking Auctions
Thanh Oai District Land Auction Falls Short of Expectations
On September 17, the Thanh Oai District Land Fund Development Center announced that the recent land auction in Thanh Than village, Thanh Cao commune, Thanh Oai, Hanoi, yielded a lower-than-expected revenue. The auction, which took place on August 10, featured 68 land lots with starting prices ranging from 8.6 million VND/m2 to 12.5 million VND/m2.
The auction initially attracted a record 4,600 applications, with winning bids reaching several times the starting prices. However, only 13 plots of land have fulfilled their financial obligations, with a total amount of over 80 billion VND. These plots had winning prices ranging from 51.6 million VND to over 55 million VND/m2.
Notably, all plots of land with winning prices from 80 million VND to over 100 million VND/m2 have had their deposits forfeited. As a result, the budget revenue from the auction has reached only 20% of the expected amount, which was over 400 billion VND.