Proposing the order and content of land price determination according to 4 methods

The Ministry of Natural Resources and Environment is seeking comments on the draft Decree on land prices, which specifically stipulates the procedures and contents of determining land prices according to four methods including comparison, income, surplus, and land price adjustment coefficients related to the implementation of the Land Law (amended) 2024, effective from January 1, 2025.

Accordingly, based on the purpose of land use to be valued, the characteristics of the land plot or land area to be valued, the collected information, the conditions for applying land valuation methods prescribed in Clause 6, Article 158 of the Land Law, the land valuation consultancy organization hired to determine land valuation is responsible for analyzing, selecting appropriate land valuation methods and proposing in the Explanatory Report to develop a land valuation plan as a basis for the natural resources and environment agency to submit to the Land Valuation Council at the same level for decision.

Information on land prices, land rental prices, and premises rental prices to apply the comparison method, the surplus method, and to develop land price adjustment coefficients is information within a period of no more than 24 months from the time of land valuation and before, collected in the national database on land and the national database on prices.

Information can also be collected from the following sources: Winning price of land use rights auction in case the auction winner has fulfilled financial obligations according to the decision approving the auction results at the unit organizing the land use rights auction; Land price recorded in the land use rights transfer contract that has been notarized and certified at the Land Registration Office; Land price used to collect financial obligations for cases of land use rights transfer collected at the tax authority; Land rental price, premises rental price recorded in the land rental contract, premises rental or collected at the tax authority; Land transfer price, land rental price, successful premises rental price on the market collected at real estate trading floors with confirmation and seal of the real estate trading floor; Land transfer price on the market collected through direct interviews with the transferor or transferee.

Information on costs and income from land use from non-agricultural land use to apply the income method is collected from the following sources:

The cost of generating income from land use specified in Point b of this Clause shall be determined based on the norms and unit prices issued by competent state agencies; in case there are no norms and unit prices issued by competent state agencies, the cost shall be based on information and average data of actual costs commonly available on the market of at least 3 plots of land with the closest distance to the plot of land or land area to be appraised and shall not be limited by the administrative boundaries of commune-level, district-level, or provincial-level administrative units.

Income from production and business activities recorded in financial statements or land rental prices, premises rental prices collected according to "Land rental prices, premises rental prices recorded in land rental contracts, premises rental contracts or collected at tax authorities; Land transfer prices, land rental prices, successful premises rental prices on the market are collected at real estate trading floors with confirmation and stamp of the real estate trading floor" within 3 consecutive years up to the end of the most recent quarter with data before the valuation time.

In case the income of the land plot to be valued is not complete each year and does not accurately reflect the actual income from land use, collect information on land rental prices and premises rental prices of at least 3 land plots for comparison.

Information on costs and income from the use of agricultural land to apply the income method shall be collected at statistical agencies, tax agencies, and agricultural and rural development agencies; in cases where there are no statistics or data from tax agencies or agricultural and rural development agencies, information shall be collected on actual costs common in the market of at least 3 plots of land with the closest distance to the plot of land or land area to be appraised as stipulated in the regulation "With the closest distance to the plot of land or land area to be appraised and not limited by the administrative boundaries of commune-level, district-level, and provincial-level administrative units", specifically as follows:

Within a period of 03 consecutive years up to the end of the most recent quarter with data before the valuation time for annual crop land, aquaculture land, salt-making land, other agricultural land; At least 3 consecutive harvests before the valuation time for perennial crop land; During an exploitation cycle before the valuation time for production forest land, industrial crop land according to specialized legal regulations.

When applying comparison methods, the surplus method must prioritize the selection of comparable land plots in the following order: Similar in location, infrastructure conditions, area, size, shape, land use coefficient, construction density, building height and other factors affecting land price compared to the land plot to be appraised; The time of transfer or winning the auction of land use rights is closest to the time of appraisal; Has the closest distance to the land plot or land area to be appraised and is not limited by the administrative boundaries of commune-level, district-level and provincial-level administrative units.

When collecting information to apply land valuation methods, land valuation consulting organizations must be honest, objective and legally responsible for the accuracy of the investigation information.

The unit organizing the auction of land use rights, the land registration office, the tax authority, the statistical agency, the agricultural and rural development agency, shall be responsible for providing information to serve the land valuation work in writing or electronically within no more than 5 working days from the date of the written request of the land valuation consultancy organization. The land valuation consultancy organization shall be responsible for storing, managing and using the collected information and data in accordance with the provisions of law.

The draft has just been announced, the Department of Natural Resources and Environment is responsible for posting the draft land price list on the electronic information page of the Provincial People's Committee, the Department of Natural Resources and Environment for 30 days to collect comments from relevant agencies, organizations and individuals. The Provincial People's Committee submits the land price list to the People's Council of the same level for approval.

The Provincial People's Council directs the Provincial People's Committee to organize the completion of the land price list for decision on promulgation; publicly announce the land price list on January 1 every year and update it in the National Land Database.

Based on the requirements for state management of local land prices, the provincial People's Committee shall submit to the People's Council of the same level for approval before deciding to adjust, amend, or supplement the land price list in the year in the following cases: When forming new roads and streets not yet included in the current land price list; when projects using land have been completed and put into use but the land price is not yet included in the land price list; cases of applying the land price list prescribed in Clause 3, Article 111 and Clause 1, Article 160 of the Land Law but the land price is not yet included in the land price list.

In which it is possible to adjust, amend, and supplement the price of one type of land, several types of land, or all types of land in the land price list. The Ministry of Natural Resources and Environment proposes that it is possible to adjust and supplement the land price list at one land location, several land locations, or all land locations; at one value area, several value areas, or all value areas.

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