Warning of risks from speculative land price surges in Nghe An.

Many risks

Recently, in many localities in Nghe An province, the buying and selling of land plots that have just been won at auction but have not yet been issued land use right certificates (red books) has become quite common. Notably, these transactions are largely not carried out in accordance with legal regulations, but rather through power of attorney or handwritten agreements between the parties, posing many legal risks.

In reality, there have been numerous cases where auction winners, before fulfilling their financial obligations to the State, quickly resell the land plot to others to profit from the price difference. This difference ranges from tens of millions to hundreds of millions of dong, and in some exceptional cases, even billions of dong per plot. To "legitimize" the transaction, the parties often agree that the winning bidder receives the full payment from the buyer, then creates a full power of attorney, allowing the buyer to act on their behalf to fulfill financial obligations, apply for the land title, and have full rights to dispose of the land plot.

The practice of buying and selling land after winning an auction and then authorizing the buyer to handle post-auction procedures is becoming increasingly common. Essentially, this is a way to circumvent the law, shifting most of the risk to the buyer. According to Article 188 of the 2024 Land Law, land users can only transfer land use rights when they have a land use right certificate and have fulfilled all financial obligations. For land won through auction, the law clearly stipulates: Only after paying the full amount and receiving the land use right certificate can the winning bidder transfer the land.

In the event that the transaction is deemed invalid due to insufficient legal requirements, the buyer risks losing money and land if the authorized party unilaterally terminates the contract, dies, loses legal capacity, or the property is seized to enforce a judgment.

From the perspective of the winning bidder, receiving a profit margin outside the contract may be considered a sign of tax evasion, subject to administrative penalties, and even face criminal liability in serious cases.

More worryingly, in recent years, many localities in Nghe An have seen a phenomenon of selling the same plot of land to multiple people, known as "land speculation" or "double deposit." This phenomenon not only disrupts the real estate market but also leaves a series of legal consequences, pushing buyers into the risk of disputes. For example, Ms. N. (residing in Vinh Loc ward) deposited 100 million VND to buy a plot of land in the former Nghi Phong commune, but later discovered that an acquaintance had also deposited money for the same plot, forcing her to cancel the transaction to reclaim her deposit.

Furthermore, many investors find themselves in a dilemma when buying land based on rumors about zoning plans, especially in relation to the VSIP 4 Industrial Park Project. The situation of overlapping stakes easily leads to frozen liquidity, increased financial pressure, and the risk of a chain reaction of stalled transactions.

Warning about price manipulation tactics by brokers.

In reality, whenever information emerges about planning or preparations for infrastructure projects, industrial parks, tourist areas, or new urban developments, brokers from all over immediately flock to the area. They take full advantage of investors' fear of missing out on opportunities to create artificial price surges.

Real estate agents readily present self-created 3D planning maps, painting a picture of grandiose infrastructure, expanded roads, and modern urban areas.

In the former Nghi Phong commune, Ms. N was introduced by a real estate agent to a "beautiful plot of land, deposit early and profit immediately." Trusting the agent, she put down a deposit, but upon inspecting the land, she was shocked to discover it was located right next to a cemetery. Also in the Nghi Phong area, a plot of land advertised as being on a "72m planned road," currently priced at 41 million VND/m², was claimed to guarantee a profit of one and a half or even double when the project is implemented.

In recent days, since news emerged that VSIP Nghe An Co., Ltd. had sent a document to the Provincial People's Committee requesting permission to survey, research, and propose investment in the VSIP 4 Industrial Park, the Dai Hue commune area immediately became a "hot spot," attracting hundreds of people daily to inquire about, invest in, and buy and sell land.

Mr. Ho Anh Tien, Chairman of the People's Committee of Dai Hue commune, said that to date, even the local government has not yet determined the specific location for the project. The investor has not worked with the People's Committee of the commune, nor has there been any surveying or marking of boundaries on the ground, yet many brokers have confidently asserted that this area will be developed into an industrial park, causing many residents and investors to hastily invest in land.

Given the complex developments in the market, on January 5, 2026, the People's Committee of Dai Hue commune issued a notice warning of risks related to land speculation, advising residents and investors to be extremely cautious, verify planning information with relevant authorities, and only conduct transactions when the legal aspects are clear.

Price manipulation occurs not only in the free market but also in land auctions. In reality, many land brokers and speculators often register to bid on multiple lots simultaneously, driving prices up abnormally high compared to their true value.

For example, at a land auction in Quang Chau commune with a total of 81 plots, the starting prices were only 1-1.5 billion VND, but the winning bids were pushed up to 3.2-3.8 billion VND per plot. When the list of winning bidders was announced, most of the winners were brokers. Immediately after the auction, most of these plots were put up for sale and resold even though the winning bidders had not yet fulfilled their financial obligations or received their land ownership certificates. Ms. Nguyen Thi M. (residing in Quang Chau commune) said: "Because I didn't win the auction, I had to buy from a broker at a higher price. I've only put down a deposit so far, and I'm very worried, but I still have to buy it so my children can build a house."

Brokerage activities need to be managed more effectively.

Many real estate experts assert that the recent land price surge in Nghe An is partly due to brokers inflating prices.

The Law on Real Estate Business stipulates that individuals are not allowed to freely practice real estate brokerage but must operate within the framework of a business, possess a certificate, and be subject to state management. However, in reality, the market still widely suffers from "illegal" practices. Many brokers lack professional certificates, legal knowledge, operate spontaneously, in groups, stage scams, prioritize short-term profits, and readily spread misinformation to entice buyers.

Mr. Nguyen Quoc Khanh, Chairman of the Nghe An Provincial Real Estate Association, believes that the core reason why brokers easily inflate prices is the lack of transparency and public disclosure of planning information, land use plans, and land prices in many localities. People face difficulties accessing official information, making them easily misled by false rumors. According to Mr. Khanh, the fundamental solution to stabilize the market is not only to punish individual brokers who violate regulations, but more importantly, for localities to fully and promptly disclose planning information, providing people and investors with a basis for verification.

In addition, online platforms for posting real estate listings also need to be brought under regulation. Websites and social media accounts that post information about land price surges, contributing to artificial price increases and manipulating prices, also need to be investigated. At the same time, the State needs to continue to strictly deal with groups of speculators who profit illegally and distort the market...

Experts advise that people, especially those with legitimate needs for land to settle down, should be extremely cautious about the "market-creating" schemes of some real estate brokers. Before deciding to invest, buyers should proactively research planning information with local authorities and avoid following the crowd mentality to prevent falling into the trap of artificial land price surges.