Hanoi’s Suburban District Halts Auction of 57 Prime Land Plots: What’s Behind the Sudden Halt
Hanoi Land Auctions Suspended Amid Unusually High Bids
The auction of 57 land plots in the Muc Xa Hamlet Dam area, Cao Duong Commune, Thanh Oai District, scheduled to take place on September 8, will continue to be postponed.
Reason for Suspension
Vietnam Auction Company has announced the temporary suspension of the auction of the right to use 57 land plots in Dam area, Muc Xa village, Cao Duong commune, Thanh Oai district, Hanoi (phase 1). The reason is that on August 29, Thanh Oai District People’s Committee issued Official Dispatch No. 2421 on temporarily suspending the auction of land use rights for 114 land plots in Cao Duong commune.
Refund of Application Fees
Customers who have registered to participate in the auction will have their application fees refunded within two working days from the date of this announcement.
Previous Suspension
Regarding these 57 plots of land, previously (August 7), Truong Son Joint Stock Auction Company announced the temporary suspension of the auction. The reason is that Thanh Oai District People’s Committee re-determined the starting price for auctioning land use rights for 114 plots of land in Cao Duong commune according to Decision No. 46 dated July 18 of Hanoi People’s Committee.
Other Suspended Auctions
Recently, many land auctions in suburban districts of Hanoi have been temporarily suspended. The National Joint Stock Auction Company No. 5 has issued a notice on the temporary suspension of land use rights auctions for 27 plots of land in Phu Luong, Yen Nghia and Duong Noi wards (Ha Dong district).
The auctioned lots range in size from 48m2 to 72m2, with starting prices of VND22.9 million/m2. The auction is scheduled to take place on September 7. Deposits for each lot range from VND200 million to over VND400 million.
Hoai Duc District also announced the suspension of the auction on August 26 for 20 plots of land LK01, LK02 and the auction on September 9 for 32 plots of land LK05, LK06.
Investigation into Unusually High Bids
According to the Hanoi People’s Committee, recently in the city, there has been a phenomenon of land use rights auctions with winning prices many times higher than the starting price. For example, land auctions in Thanh Oai district were 7-8 times higher, and in Hoai Duc district, the highest price was 18 times higher than the starting price.
Hanoi People’s Committee believes that the above unusually high bids may affect socio-economic development, investment and business environment, housing and real estate markets.
The City People’s Committee requests the Hanoi Department of Natural Resources and Environment to coordinate with relevant departments and branches to inspect all land auctions in Thanh Oai and Hoai Duc districts in the past time. From there, promptly detect and resolutely handle violations of the law (if any). Review the process, procedures, regulations… on land use rights auctions of districts, towns and cities. At the same time, report to the City People’s Committee to direct the implementation of measures to ensure the organization of land use rights auctions according to regulations.