Brian Jeffrey
The Ministry of Natural Resources and Environment (MONRE) has identified discrepancies in land auction prices and has urged local authorities to update their land price frameworks to align with current market prices. The ministry emphasized that these disparities, particularly seen in winning bids exceeding starting prices by large margins, could disrupt the market and negatively impact various sectors including investment, business, and real estate.
Concerns were raised about the outdated price frameworks still being used in some regions, leading to significant differences between announced prices and actual market prices. This discrepancy was evident in recent land auctions, such as one in Hanoi’s Hoa Duc suburban district where the winning bid was 18 times higher than the starting price, surpassing even official prices in prime districts like Hoan Kiem and Ba Dinh.
Local authorities have been urged to reevaluate and adjust their pricing frameworks by comparing officially set prices with prevailing market rates to prevent speculation and ensure fair transactions. Prime Minister Pham Minh Chinh has also called for a thorough examination of land auctions showing irregularities, involving the cooperation of multiple ministries.
