Primary apartment listings in Hanoi are sold out after each sale, 4 methods of land valuation

Hanoi revokes and abolishes 153 projects; Hanoi apartment prices skyrocket, large number of searches; 4 land valuation methods... are the latest real estate news.

Latest real estate: Scarcity of supply and skyrocketing prices have caused Hanoi apartments to approach the price level of Ho Chi Minh City apartments, although less than two years ago, the gap was quite large. (Photo: Hoang Ha)

Hanoi revokes and abolishes 153 projects

The Hanoi People's Committee has just reported on the implementation results of Resolution No. 04/2022 of the City People's Council on measures to accelerate investment progress, focusing on handling slow-to-implement non-budget capital projects using land in Hanoi.

Accordingly, the cumulative handling results up to June 15, 2024 (expected implementation results up to the end of June 2024) have 705/712 projects (accounting for 99%) with a total area of more than 11,300 hectares of land with inspection, examination, post-inspection conclusions and handling instructions, assigning units to continue to monitor, urge to accelerate investment progress, and put land into use.

7/712 projects (accounting for 1%) with a total area of 88.5 hectares of land, have had a policy decision but have not been allocated or leased land by the State. The Department of Planning and Investment is continuing to review to consider a handling plan. Results for the first 6 months of 2024, a decrease of 25 projects compared to the end of 2023 (32 projects).

Specifically, 410/712 projects with a total area of over 9,000 hectares of land were removed from the list of slow-moving projects and continued to be monitored. The results of the first 6 months of 2024 increased by 80 projects compared to the end of 2023 (330 projects).

Of these, 12 projects were proposed to be removed from the list due to duplication, and the investor proposed to study them without the opinion of the City People's Committee.

After inspection and examination, 155 projects' investors proactively overcame the shortcomings and were proposed to be removed from the list of slow-to-implement projects.

9 projects after the National Assembly issued a Resolution to remove obstacles for commercial housing projects (problems when implementing according to the provisions of Decree No. 30/2021/ND-CP dated March 26, 2021 of the Government), the City People's Committee has sent a document reporting to the Ministry of Natural Resources and Environment on the current status and solutions to implement commercial housing projects through agreements on receiving transfer of land use rights or having land use rights for other land.

Notably, there are 153 projects that have had land reclaimed, land allocation and lease decisions annulled, project activities terminated, implementation stopped, or the assignment of investors to study and develop planning was terminated.

For 295 projects with a total area of over 2,200 hectares of land, there have been instructions to continue monitoring, urging and organizing post-inspection after the 24-month extension period, the 24-month extension period due to the force majeure of the Covid-19 pandemic. The results of the first 6 months of 2024 decreased by 55 projects compared to the end of 2023 (350 projects).

Of which, 110 projects with a total area of more than 330 hectares of land are behind schedule and slow to put into use. The City People's Committee has decided to extend the land use term for 24 months and the investors must pay the State an additional amount of money equivalent to the land use fee and land rent for the 24-month extension period (42 projects have their extension period extended by 24 months due to force majeure due to the Covid-19 pandemic).

For 185 projects with a total area of more than 1,900 hectares of land, there have been conclusions from inspection, examination, and post-inspection. The City People's Committee assigned the City Departments and People's Committees of districts, towns, and cities to monitor and continue to urge implementation for each project.

Apartment is the hottest keyword

According to data compiled by Batdongsan.com.vn, Hanoi apartments are the type of property with the sharpest increase in searches in the first half of this year, with an increase of about 46% compared to the same period last year. Meanwhile, private houses, townhouses and villas for sale recorded searches increasing by 33%, 27% and 9% respectively.

Scarcity of supply and skyrocketing prices have caused Hanoi apartments to approach the price level of Ho Chi Minh City apartments, although less than two years ago, this gap was quite large.

Although the number of searches for real estate types in Ho Chi Minh City did not fluctuate as strongly as in Hanoi, it still recorded a fairly high increase. Specifically, the number of searches for land for sale increased by 45%, the number of searches for private houses increased by 34%, the number of searches for apartments, villas and townhouses increased by 33%, 25% and 22% respectively.

In terms of selling prices, the Hanoi market also recorded a price acceleration that was superior to that of Ho Chi Minh City. Accordingly, in Ho Chi Minh City, in the first 6 months of 2024, except for the apartment type, which recorded a 6% increase in selling prices over the same period, the remaining types did not have significant fluctuations.

Meanwhile, in Hanoi, apartment prices skyrocketed by 31%. In fact, in the past few months, the primary market in Hanoi sold out after each sale despite the sharp increase in prices, with the clearest evidence being Lumi Hanoi and some subdivisions in Vinhomes Smart City Urban Area such as The Capony, Lumi Evergreen, Solar Park, etc.

Along with apartments, private house prices also increased by 32% compared to the first half of 2023. The reason is said to be due to the high price of apartments and the scarcity of supply, many people turned to looking for private houses in the same price range of 2-4 billion VND, causing the selling price in this segment to increase sharply. Similarly, land prices, villa prices and townhouses in Hanoi also increased by 19%, 18% and 10% respectively.

In the Hanoi market, the scarcity of supply and skyrocketing prices have caused Hanoi apartments to approach the price level of Ho Chi Minh City apartments, although less than two years ago, this gap was quite large. Notably, the price increase in the apartment segment in Hanoi is not a local situation, but occurs in all segments, regions and projects. Currently, the apartment segment has cooled down but still maintains the best liquidity compared to the rest of the market.

Lam Dong real estate transactions increase

Lam Dong Provincial Department of Justice has just provided information and data on transaction volume and prices of real estate types through notarization in the province in the second quarter of 2024.

Real estate in Lam Dong in the second quarter of 2024 increased by more than 1,500 transactions.

Specifically, in the second quarter of 2024, in Lam Dong province, there were a total of 5,722 real estate transactions, with a total value of more than 7,031 billion VND.

Of which, the land type had 5,383 transactions with a total value of 5,874 billion VND. The locality with the largest number of land transactions was Lam Ha district, with 1,064 transactions.

Compared to the previous quarter, land in Lam Dong in the second quarter of 2024 increased by 1,572 transactions. The places with a large number of transactions were Lam Ha district, Duc Trong district and Da Lat city.

For individual houses, in the second quarter of 2024, Lam Dong province had 312 transactions, with a total value of VND 1,119 billion. On average, each house had a selling price of more than VND 3.5 billion. Most of the individual house transactions were concentrated in Da Lat city, Bao Loc city and Duc Trong district.

Compared to the first quarter of 2024, the number of individual housing transactions in Lam Dong has not fluctuated much. However, there are signs that people are "hunting" for this type of housing in Duc Trong district.

For example, in the first 3 months of this year, Duc Trong district did not have a single housing transaction. But in the second quarter of 2024, this locality had 145 transactions, leading the province.

Regarding the apartment type, transactions are still mainly concentrated in Da Lat City. In the past three months, there were 27 transactions with a total value of 38.3 billion VND. On average, each apartment has a selling price of more than 1.4 billion VND. Compared to the previous quarter, apartment transactions in Lam Dong in the second quarter of 2024 increased by 6 transactions.

Four methods of land valuation according to Decree 71/2024/ND-CP

The Government has just issued Decree No. 71/2024/ND-CP regulating land prices, which provides guidance on four land valuation methods, effective from the effective date of Land Law No. 31/2024/QH15.

Clause 5, Article 158 of the 2024 Land Law stipulates land valuation methods including:

One: The comparison method is implemented by adjusting the price of land plots with the same land use purpose, certain similarities in factors affecting the price of land transferred on the market, winning the auction of land use rights for which the auction winner has fulfilled financial obligations according to the auction winning decision through analyzing and comparing factors affecting land price after excluding the value of assets attached to the land (if any) to determine the price of the land plot to be appraised;

Two: The income method is implemented by taking the average annual net income on a land area divided by the average savings interest rate of 12-month term deposits in Vietnamese Dong at commercial banks in which the State holds more than 50% of the charter capital or total number of voting shares in the provincial area for 3 consecutive years up to the end of the most recent quarter with data before the time of land valuation;

Third: The surplus method is implemented by taking the total estimated development revenue minus the total estimated development cost of the land plot or land area on the basis of the most effective land use (land use coefficient, construction density, maximum number of floors of the building) according to the land use planning and detailed construction planning approved by the competent authority;

Four: The land price adjustment coefficient method is implemented by multiplying the land price in the land price table by the land price adjustment coefficient. The land price adjustment coefficient is determined by comparing the land price in the land price table with the market land price.

In addition, Decree 71/2024/ND-CP also specifically stipulates the procedures and contents for determining land prices according to four methods including comparison, income, surplus, and land price adjustment coefficient. In addition, the Decree also specifically stipulates factors affecting agricultural and non-agricultural land prices.

The Decree clearly states: Based on the actual situation in the locality, the organization implementing the proposed land valuation shall have the Department of Natural Resources and Environment preside over and coordinate with relevant departments and branches to advise and submit to the Provincial People's Committee to specify the factors affecting land prices, the maximum difference of each factor affecting land prices to determine a certain level of similarity, and the method of adjustment for each difference of each factor affecting land prices.

In case the provincial People's Committee has not yet specified or has insufficiently specified the factors affecting land prices, the maximum difference of each factor affecting land prices, and the adjustment method for each difference of each factor affecting land prices, the organization implementing land valuation shall propose specific details in the explanatory report on the development of the land price plan for the Land Valuation Council to consider and decide.

In addition, the Decree also clearly states the responsibilities of agencies and units in providing information. Accordingly, agencies, organizations and units assigned to manage, exploit and use information sources specified in Point b, Clause 2, Article 4 and Point b, Clause 1, Article 5 of this Decree are responsible for providing information to serve land valuation work in writing or electronically within 5 working days from the date of receipt of the request document of the organization performing land valuation.

Source: https://baoquocte.vn/bat-dong-san-moi-nhat-bang-hang-chung-cu-so-cap-tai-ha-noi-het-sach-sau-moi-lan-mo-ban-4-phuong-phap-dinh-gia-dat-276748.html