HCMC – Prime Minister Pham Minh Chinh has issued a directive urging relevant authorities to urgently review and inspect the most recent land use rights auctions that showed signs of irregularities, according to the Government news website (baochinhphu.vn).
In the directive dated August 21, PM Chinh acknowledged that while some land use rights auctions had been successful, there were instances where winning bids unusually exceeded starting prices.
These inflated bids have raised public concern and could negatively impact social and economic development, the investment and business environment, as well as the housing and real estate markets, according to the directive.
To address these concerns, PM Chinh has instructed local authorities to direct relevant agencies to thoroughly review the organization of land use rights auctions in their respective areas.
The Minister of Construction has been tasked with collaborating with the Ministry of Natural Resources and Environment and local authorities to examine and assess the impact of recent land use rights auctions, particularly those with unusually high winning bids.
This directive follows a series of land auctions held in early August on the outskirts of Hanoi City, where thousands of registrations were received, and winning bids exceeded VND100 million per square meter, causing a stir in the market.
In the most recent auction earlier this week, more than a dozen plots sold for over VND100 million (over US$4,000) per square meter, with the highest bid reaching VND133.3 million (US$5,300) per square meter—18 times higher than the starting price. Many investors and experts view these prices as far above the fair value of similar plots in the area.
