“Land Prices in Dong Hoi Quadruple After Auction, Sparking ‘Cornering’ Speculation”

According to investigations by Nguoi Lao Dong reporters, recent land auctions in Dong Hoi city have attracted hundreds of participants, causing land prices to soar. Some plots sold for up to four times their starting price, heating up the local real estate market like never before.

The auction, organized by Truong Ha Partnership Auction Company in collaboration with the Management Board of Investment Construction and Development of Dong Hoi City Land Fund on June 13, attracted more than 300 people with over 700 sets of documents. 36 land plots in Hai Thanh, Bac Nghia, and Bao Ninh wards were up for auction, ranging in size from nearly 95 sq. m. to over 337 sq. m., with starting prices ranging from VND 568 million to over VND 6.7 billion per plot.

However, many plots were sold for much higher prices than the starting bid. Specifically, Plot No. 131 in Hai Thanh Ward, with an area of 140 sq. m. and a starting price of VND 872 million, was sold for over VND 3.8 billion, an increase of 4.4 times. Plot No. 137 was also sold for VND 3.45 billion, 3.3 times higher than the starting price.

Plots in prime locations saw differences of up to VND 1.5-3 billion. After winning the auction, many immediately resold their plots on social media, creating a “surfing” loop that was previously seen during land fever a few years ago.

In just the last two sessions, some individuals won bids for more than 20 land plots, with a total value of tens of billions of dong. In particular, in areas such as Bac Ly and Duc Ninh, there were cases where one person consecutively won 6-7 plots, each worth between VND 1.5 and 2.7 billion. Out of the 24 auctioned land plots, 19 plots saw differences of hundreds of millions to over VND 1 billion.

Many residents of Dong Hoi city expressed concern that the soaring land prices would push up artificial prices, distorting the market and causing difficulties for those with genuine housing needs.

An official in the auction industry shared that a similar phenomenon occurred in the 2019-2020 period, where many auctioned land plots were pushed to three to four times their starting prices. However, after the short fever, the market quickly became stagnant, and many land holders had to sell at a loss.

“The current escalation of land prices after auctions needs to be carefully considered to avoid herd behavior leading to a real estate bubble burst”, the official said.

In a separate development, the Quang Binh Province Land Development Center announced that it has temporarily halted notifications of land auction organizations for the time being. The reason given was that the auctions held recently had “issues.” Participants were bidding far above the market price.

The halt was agreed upon to review and seek the opinion of the Quang Binh Provincial People’s Committee.