This was the first auction held by Tay Phuong commune since the implementation of the two-tier local government model in July 2025. The event was organized by the commune People’s Committee in coordination with National Partnership Auction Company No5.

In the morning session, 22 land plots in Binh Xa village were successfully auctioned. The plots ranged from 69.2 to 117.1 square meters, with starting prices of just VND11.8–18.5 million per square meter.

The highest winning bid reached VND164.5 million per square meter, almost nine times the starting price. The lowest winning bid was VND63.8 million per square meter, 5.4 times the initial price.

On the same day, 20 plots in the Ma Co area and two plots in Dong Nga were also put up for auction. Each plot ranged from 68.5 to 150 square meters, with starting prices between VND10.8 million and VND50.8 million per square meter.

All of these plots found buyers. The highest price reached VND96.8 million per square meter, nearly nine times the starting price, while the lowest was VN 62.8 million per square meter, 5.8 times higher than the initial level.

Thach That was previously considered a “hot spot” for land auctions in late 2024 and early 2025. At an auction on December 4, 2024, 28 plots in Binh Xa village, Binh Phu commune (former), were bid up to more than VND185 million per square meter, 32 times the starting price. However, when the payment deadline expired, only four plots fulfilled their financial obligations, while more than 85 percent were abandoned.

In May 2025, the plots were re-auctioned, with the highest winning price again exceeding VND 180 million per square meter.

Nguyen Vu Cao, Chair of Khang Land, said the market is still strongly influenced by FOMO (fear of missing out) psychology.

“The market is in a transition phase, but many unhealthy elements from the previous cycle remain. Land auctions in some areas may be exploited by certain groups to artificially inflate prices and create waves across surrounding areas,” he said.

According to Cao, these groups are willing to purchase a few plots at extremely high prices to push up the overall price level. Once local prices are anchored at a higher level, they profit from properties they had accumulated earlier.

“Auction winners do not always make profits from the very plot they win, but from surrounding plots,” he added.

He warned that if the market follows such price manipulation waves, it could create distortions, making price control more difficult and running counter to the Government’s market stabilization goals.

Authorities have recently tightened land auction regulations under Resolution 66.11/2026. The deposit requirement has been raised to a maximum of 50 percent of the starting price, compared with 20 percent previously. Winners who fail to complete payment (forfeit deposits) will be banned from participating in auctions for two to five years; those who fail to fully pay the winning amount may be banned for six months to three years.

Previously, the Law on Property Auction only imposed bans on enterprises forfeiting deposits in investment or mineral exploitation projects, with no specific provisions for individuals participating in residential land auctions.

Pham Thanh Tuan, a lawyer from the Hanoi Bar Association and a real estate legal expert, said the new regulation addresses the previous legal gap and significantly strengthens deterrence against individuals who win auctions and then forfeit deposits.

“The risk of being banned from auctions for a long period will force participants to think carefully before forfeiting deposits, thereby helping curb speculation, price inflation and the risk of ‘artificial fever’ driven by land auctions,” Tuan said.

Meanwhile, Cao noted that while raising deposits and banning violators for several years is necessary, these are only surface-level solutions.

According to him, regulators need to strengthen oversight to prevent groups from exploiting auctions to disrupt the market. Fundamentally, he said, the key solution lies in developing supply in line with actual market demand, particularly affordable housing that meets the needs of the majority.

For investors, he advised against chasing FOMO-driven waves. “If you ride the price inflation wave, the risk of capital being tied up in unsold inventory is very high, and ultimately small investors will bear the losses,” he said.

Hong Khanh