Việt Nam has raised deposits required for participation in residential land auctions to as much as 50 per cent of the starting price and introduced bans of up to five years for winning bidders who fail to fulfil payment obligations, as part of an effort to curb real estate speculation and market distortion.

 

These regulations were introduced in the Government’s Resolution 66.11/NQ-CP dated January 6, taking immediate effect and lasting until February 28, 2027.

 

Specifically, individuals participating in actions related to residential land-use rights must be required to place a deposit of at least 10 per cent and up to 50 per cent of starting prices, up from the previous range of 5 per cent to 20 per cent regulated under the Law on Asset Auction.

 

The move is aimed to prevent bidders from driving prices higher and then abandoning their deposits for profits, a practice that is said to contribute to distorting the land market.

 

Winning bidders who fail to fulfil their financial obligations resulting in cancellation of the auction results will be banned from participating in residential land auctions for two to five years. Those who only make partial payments will be banned from six months to three years.

 

Authorities will be responsible for issuing decisions on the bans within 10 days of the cancellation of auction results.

 

The resolution will remain in effect until February 28, 2027. If relevant laws or resolutions passed by the National Assembly come into effect before March 1, 2027, the corresponding provisions in this resolution will cease to apply.

 

Land auction markets have seen sharp price increases since late 2024, especially in the suburban areas of Hà Nội, with some plots paid at record levels of more than VNĐ100 million per sq.m.

 

Some auctions were later found to have serious problems, including winning bidders not making payments, fuelling concerns over speculation. — VNS

 

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