New land price list in Ho Chi Minh City: Prices of undeveloped land and land with title deeds are sure to increase sharply.

Draft of the new land price list: Land prices are lower than market prices.

According to observations by a reporter from Dan Tri newspaper, the Land Registration Office in Thu Duc City, Ho Chi Minh City, has been quite crowded with people applying for land use rights certificates these days. On the morning of October 17th, the office was almost full. Mr. D.T. Phong, who brought his power of attorney documents to apply for a land use rights certificate, arrived at the office at 10 am, expressing concern that he might not get his turn even after the morning working hours, fearing the crowds and arriving too late.

When asked about the draft of the new land price list in Ho Chi Minh City, Mr. Phong said he was interested. He believes the new land price list is closer to market prices, significantly affecting those who hold agricultural land and want to convert it to residential land. However, he believes that regulations that have been legalized must be complied with.

Mr. NTTịnh held the real estate transfer documents in his hand, saying that transactions have been facilitated since the city issued a document clarifying the tax calculation method. Currently, Mr. Tịnh submits his documents normally and is scheduled for processing within about 10 working days. Regarding the new land price list, he said he is still monitoring it as there is no official information yet.

According to the draft of the new land price list submitted by the Department of Natural Resources and Environment (TN&MT) to the Ho Chi Minh City People's Committee on October 16th, the highest land price recorded is 687 million VND/m2, in the area of ​​Dong Khoi, Le Loi, and Nguyen Hue streets (District 1). This price is four times higher than the current price list, but is lower than the previous draft land price list (810 million VND).

Several other routes in District 1 and District 3 also saw price reductions compared to the previous draft. In suburban areas, the new land price list also showed significant decreases.

For example, the highest proposed price for land along the parallel road to National Highway 22 is 32 million VND/m2, a significant reduction from the previously proposed 71 million VND/m2. The new price also represents a 20-fold increase, instead of the more than 50-fold increase compared to the current price list.

According to the leaders of the Ho Chi Minh City Department of Natural Resources and Environment, the new draft land price list, compared to the old version, has been adjusted to balance land prices in bordering areas. In addition, the adjusted land price list will be approximately 50% of the market price.

An investigation by Dan Tri reporters also revealed that land prices in the new draft are significantly lower than market transaction prices. On Dong Khoi and Nguyen Hue streets (District 1), actual transaction prices are recorded at 1.2 billion VND/m2, but the draft price list shows 687 million VND/m2.

For example, the proposed price for houses on Nam Ky Khoi Nghia Street, District 3, is over 300 million VND/m2, but in reality, the common price is over 400 million VND/m2. Similarly, on Tran Nao Street (Thu Duc City), actual transactions are over 200 million VND/m2, while the proposed land price is 149 million VND/m2.

Many people were seen going to the Thu Duc City Land Registration Office to complete land registration procedures (Photo: Khong Chiem).

Experts predict that land prices for residential plots and land with title deeds will increase sharply.

Mr. Vo Hong Thang, Deputy General Director of DKRA Vietnam, said he had access to the latest draft of the adjusted land price list for Ho Chi Minh City. He assessed that the group most immediately affected are those in suburban areas, owning agricultural land and wanting to convert it to residential land and subdivide it, such as Cu Chi, Hoc Mon, Binh Chanh, and Can Gio. This is because the new land prices have increased dozens of times compared to the current price list. These are the people who are essentially "buying new land."

Mr. Thang also noted that after the market began to see the introduction of new land price lists, the price level of residential land plots and land with title deeds has seen a sudden surge. In the coming period, this segment will become scarce, especially land plots with title deeds and residential land in urban areas with existing residents, where the consumption rate has increased by more than 30%.

Assessing the impact of land price regulations on projects, he argued that in the short term, projects that already own land and only have to pay land use fees will not be significantly affected. However, in the long term, when investors acquire new land, they have to clear and compensate for the land, which increases the cost of land, contributing to the selling price and driving up the price of products in the market.

From an overall perspective, Mr. Thang believes the new land price list will bring many advantages, helping land prices approach market prices, accelerating compensation and land clearance, thereby shortening project implementation time and saving financial costs. However, whether the saved financial costs will balance the increased land prices remains an unknown, depending on the legal resolution process of the project.

If Ho Chi Minh City issues land price lists quickly and removes legal obstacles promptly, the increase in real estate prices will be curbed. Therefore, experts believe that all actions must be taken simultaneously to achieve the highest effectiveness, and the regulatory role of state management agencies is crucial.

Mr. Nguyen Quoc Bao - Chairman of the Ho Chi Minh City Real Estate Club (HREC) - also agreed that the issuance of the new land price list is good, as land prices are closer to market prices, making the market more transparent and clear, and better for the State budget. The new land price list will also contribute to reshaping the market and entering a new cycle.

Mr. Bao believes that the selling price of the project will certainly be higher in the near future due to rising land costs. Businesses will make less profit, but to achieve better profits, they need to focus on quality to sell at a better price.

Real estate expert Tran Khanh Quang assessed that the draft of the new land price list shows a reduction of about 20% compared to the previous draft, but it is still 5-10 times higher than the current price list. However, adjusting the price list is necessary and in accordance with the new regulations of the Land Law.

He observed that with the new draft, prices are approaching 50-70% of market value. If the draft is enacted, the market will experience significant fluctuations, especially in suburban areas of Ho Chi Minh City such as Cu Chi, Hoc Mon, District 12, Binh Tan, Binh Chanh… Because in these areas, there is still a large amount of agricultural land, and people need to convert it to residential land to build houses.

Therefore, experts predict two possible scenarios. Firstly, existing residential land prices will rapidly increase by 20-30% in the next six months. Secondly, investors will continue to convert existing land into residential land for commercial purposes, leading to a 30-50% increase in land prices within the next 6-12 months.

Mr. Quang's only concern is that in the draft of the new land price list, residential land is priced according to each road. However, agricultural land prices are based on specific areas, with a more uniform pricing system, resulting in prices that remain low and do not accurately reflect market conditions. Therefore, he proposes that agricultural land prices should be calculated specifically according to each road, similar to residential land prices.

Source: https://dantri.com.vn/bat-dong-san/bang-gia-dat-moi-tai-tphcm-gia-dat-nen-dat-co-so-chac-chan-tang-manh-20241018091313053.htm