Land prices must reflect market values.

Much expectation is being placed on the National Assembly's planned comprehensive revision of the 2024 Land Law at its second session, which opens in October.

High expectations are being raised as the National Assembly plans to comprehensively amend the 2024 Land Law at its second session (opening in October). (In the photo: a real estate project in Ho Chi Minh City - Photo: QUANG DINH)

According to Article 257 of the Land Law, the deadline for localities to publish the first land price list is January 1, 2026. Localities are responsible for issuing new land price lists and applying them from January 1 of each year.

The land price table represents a very important step forward in the history of land law development since 1987 because it abolished the land price framework issued by the Government every five years. It replaced the framework with a price table that is regularly updated to reflect actual fluctuations and applied annually.

Abolishing the price framework and adopting a price list is necessary, but why is there so much negative reaction in some localities, where land prices have increased by as much as several tens of times in some places?

The soaring prices have created difficulties, such as rural residents having to pay huge sums of money to convert their land to residential status, essentially buying land at exorbitant prices even if it's inherited land. Many real estate projects have stalled due to the significantly increased initial land use fee.

To remove obstacles and difficulties in the implementation of the Land Law and reduce the burden on the people, the National Assembly issued Resolution No. 254 (effective from January 1, 2026) to reduce the land use fee by 70% when converting agricultural land to residential land.

However, regulations regarding land price lists need to be further specified in the law and subordinate legal documents when considering amendments to the Land Law in the near future, in order to ensure the consistency and comprehensiveness of the land finance legal system.

To avoid further negative reactions regarding the land price list when amending the law, firstly, it is necessary to minimize the land use fee for converting agricultural land to residential land in rural areas.

Families eligible for government assistance, war veterans, impoverished households, and ethnic minority communities should be completely exempt from the transfer of ownership fees.

However, the conditions for transferring ownership must comply with the planning regulations and strict limits set by the local authorities.

Secondly, it is advisable to allow businesses to pay a portion of the land use fee until the project becomes operational, at which point they will only have to fulfill 100% of their obligations, in order to reduce the financial burden on real estate projects.

Therefore, when constructing a price list, it is necessary to ensure market principles are followed, accurately reflecting market prices according to the law of supply and demand.

The problem is that, in order to apply a price list that closely reflects market prices, the State must have policies and regulations in sub-legal documents for each case to allow for flexible application.

To avoid further negative reactions, regulations on pricing need to harmonize the interests of the State, the people, and businesses.

Automation in land valuation should be promoted to create price lists that closely reflect market prices. Simply using a smartphone to search for any plot of land should yield specific land and real estate prices, along with reference parameters.

To achieve this, ministries, departments, and localities must launch a campaign to add tens of millions of incomplete land parcels to the data warehouse as required by the Government; and put the land data into actual exploitation and use this year.

When data is digitized and transparent, and land valuation is more accurate, people whose land is confiscated will receive adequate compensation, eliminating bitter stories that lead to prolonged lawsuits.

In short, the overarching goal of "a prosperous people and a strong nation" must always be adhered to when establishing land price tables at all times, creating momentum for sustainable development.

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QUANG THẾ

Source: https://tuoitre.vn/bang-gia-dat-phai-sat-thi-truong-20260522080832417.htm