Account equal to… 0 participate in real estate bidding

Two land lots that two businesses won land auction in Thu Thiem new urban area (Thu Duc City) up to this point has not yet paid into the state budget as committed. According to economic experts, that means that it may take a long time for 2 new land lots to be deployed as a project, both wasting land resources and losing opportunity costs of land. The job of creating material wealth for society when tens of thousands of square meters of land is still there is unknown.

Experts said that the above fact is leaving bad consequences for the real estate market in Ho Chi Minh City because businesses paying high prices have pushed up land prices in Thu Thiem area in particular, Ho Chi Minh City said. general up. On the other hand, it also affects the legal policy on land, asset auction, and dishonest businesses will take advantage of these loopholes to manipulate the real estate market.

“They can sell their assets and they may have run away. Not to mention many people are buying at very high prices. Many investors are using financial leverage, have to borrow, but they can’t hold it. For a long time, especially in the context of inflation, the State Bank will have to raise interest rates and when raising interest rates, financial costs will increase.If banks squeeze debt, it will lead to the collapse of asset price bubbles, leading to bad debt in the banking system”, said Dr. Do Thien Anh Tuan – Lecturer in the Fulbright Economics Teaching Program.

Land plots in Thu Thiem new urban area (Thu Duc City, Ho Chi Minh City) are auctioned. Photo: workers.

Master, Lawyer Nguyen Thanh Dam – Ho Chi Minh City Bar Association said: “In the auction is not strict, people only stipulate that the deposit before the time of participating in the auction is 5 – 20%, ignoring the evaluation. Evaluation of financial capacity Evaluation of the financial capacity of enterprises participating in the auction here is an assessment of the financial statements of the last 3 years to see how the financial health of the business is. That financial capacity must be guaranteed by a unit or credit institution so that when winning the auction to execute the project, there is no basis.

Many people think that, in order to overcome the situation of participating in virtual bidding, Ho Chi Minh City needs to have a mechanism to clearly define the right to develop projects and then, along with other criteria, to be eligible to participate in the bidding process. land price for project development.

Thus, the State will collect both the project development auction and the land auction. Investors must have the capacity and desire to develop the project before buying land, not buying land and then transferring it.

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