Recent Land Auctions in Hanoi: Trends and Impacts

In late 2024, an auction of 26 land parcels in the LK2 and LK6 blocks of Yen Quan Hamlet in Quoc Oai district showed dramatic price fluctuations. Although the starting price was set at VND4.7 million per square meter, some sales skyrocketed to VND76.7 million per square meter—16 times the initial price—while the lowest sale was VND40.7 million, 8.7 times higher than the start.

This auction’s prices were significantly lower compared to a previous auction for plots in the DG31/2019 block in late November, where the highest price drop recorded was VND18 million per square meter, approximately 20% less than before.

Earlier, another auction of 20 plots had prices peaking at VND95 million and going as low as VND71 million per square meter.

During August and September of 2024, land auctions in Hanoi’s suburban districts drew large crowds, with over 1,000 registrations in some cases. These areas became extremely popular, with new record prices, some reaching up to VND100 million per square meter. Nevertheless, recent auctions have indicated a downturn.

Market analysts attributed this decline to regulatory actions from state bodies, which has led to a notable drop in participant numbers and registrations.

For instance, an auction in November for 12 plots in Trach My Loc commune received only 120 submissions and attracted just 32 clients, a marked decrease from August’s events.

Interestingly, winning bids in this auction were unexpectedly low, with the highest price for the seven plots in Doc Tranh area at only VND37.6 million per square meter, and the lowest at VND28.8 million—this was merely 20% above the starting figures.

Additionally, the areas of Hoai Duc and Thanh Oai witnessed price reductions, with many bidders withdrawing and forfeiting their deposits.

During a November 2024 auction in Thanh Oai, the highest price dropped to VND75 million per square meter, a 20% reduction from the preceding auction. When compared to August’s rates, this represented a staggering 35% decline.

In early December 2024, the Prime Minister called on various ministries and local governments to address the escalating land prices, prompting some local authorities to delay auctions for legal reviews.

According to real estate legal expert Nguyen Van Dinh, revising land prices is essential for improving the integrity of land-use rights auctions.

High bidding often leads individuals to forfeit deposits as they fail to secure land deals due to low starting prices established under Article 159 of the 2024 Land Law, which ties these prices to official land value frameworks.

With Hanoi’s official prices set considerably lower than actual market value, auction starting points became unfeasibly low, causing winning bids to surge far beyond them.

A notable example occurred when bidders in Soc Son district pushed prices up to VND30 billion per square meter, starting from merely VND2-3 million, resulting in fierce competition that derailed the auction process.

The Ministry of Natural Resources and Environment (MONRE) has been proactive, instructing regional authorities to update the land price frameworks to better match market values.

Both HCM City and Hanoi are working on establishing new pricing structures that align more closely with market realities, which will give local governments authority to set more realistic starting prices, prompting bidders to carefully consider their offers.

“This change could lead to more organized and fair auctions, as opposed to the recent chaotic experiences,” Dinh stated.

In a recent update, the Hanoi People’s Committee has sanctioned a plan for land use in Cau Giay district for 2025, which includes the launch of 22 projects across an area of 28.36 hectares.