Adjusting land prices in Ho Chi Minh City

Adjusting land price list needs to pay attention to many issues

In recent days, information surrounding the Draft adjusted land price list in Ho Chi Minh City has remained very "hot" and received much attention from the people as well as the authorities.

In addition to the benefits for people whose land is recovered, being compensated, supported, and resettled more satisfactorily, with higher compensation amounts than before; reshaping the land price framework to be more realistic, transparent, and clear, experts say that the draft will also have an undesirable impact on the real estate market, including commercial housing projects and social housing projects, and at the same time push up real estate prices.

According to information from the Ho Chi Minh City Real Estate Association (HoREA), this unit has issued many urgent documents proposing opinions and contributing social criticism on the "Draft adjusted land price list".

The information about the adjusted land price list being issued in Ho Chi Minh City has made many people interested and worried that as house and apartment prices increase, it will be more difficult for people to access them.

According to HoREA, on July 29, the Department of Natural Resources and Environment of Ho Chi Minh City (DONRE) announced information on the Draft land price list in Ho Chi Minh City applicable from August 1, 2024 to December 31, 2024 (Draft adjusted land price list).

The draft adjusted land price list commonly increases 10-20 times compared to the land price of the current land price list as stipulated in Decision No. 02/2020/QD-UBND dated January 16, 2020 of the People's Committee of Ho Chi Minh City.

However, up to now, the Association has found that only Ho Chi Minh City has announced information about the draft adjusted land price list.

Faced with the above issue, HoREA suggests that the drafting agency should put itself in the people's shoes to see more clearly why at present it should not issue a land price list applicable from August 1, 2024.

In the proposal document, HoREA said that the drafting agency needs to pay attention to 4 cases that will be affected by the draft adjusted land price list.

The first is the case of individuals who need to request recognition of land use rights, including 13,035 land plots for which land users have not been granted the first certificate.

The land registration office in Ho Chi Minh City is always crowded with people, especially after there was a lot of information related to the adjustment of land price list.

The next case is to request legalization of land use rights for agricultural land and non-agricultural land located in urban areas and rural residential areas attached to houses on the same plot of land.

In case of requesting to separate land plots at the same time as changing the land use purpose to residential land to divide among children.

And fourth, in the case of individuals and households whose houses and land are located in suspended planning areas such as newly built residential areas, renovated residential areas or in suspended projects.

Worried that the adjustment will push up housing and land prices?

In addition to some feedback to the authorities on hot issues that need attention when applying the adjustment of land price list in Ho Chi Minh City. Mr. Le Hoang Chau, Chairman of HoREA, said that the draft adjusted land price list has an unwanted impact on the real estate market, including commercial housing projects and social housing projects.

Speaking at the Social Criticism Conference on the draft Decision to adjust Decision 02/2020 of the Ho Chi Minh City People's Committee on land price list in Ho Chi Minh City, the Chairman of HoREA commented: "When the land price list increases many times, people will have the mentality of raising prices and the real estate market tends to push real estate transaction prices higher than before.

This also causes businesses in the process of receiving real estate transfers to have to buy at prices many times higher than before, which will affect the goal of reducing housing prices to a reasonable level."

In addition to the obvious benefits, the draft land price adjustment is also making investors worry that housing and land prices will increase accordingly.

According to HoREA, the draft adjusted land price list also has an undesirable impact on public investment projects that use land, increasing the cost of compensation for site clearance, support, and resettlement, first of all, traffic projects, urban and rural infrastructure. A typical example is the project to renovate, relocate, and resettle people living on and along Xuyen Tam Canal, Binh Thanh District.

From a business perspective, speaking with Nguoi Dua Tin , Mr. Ha Van Thien, Deputy General Director of Tran Anh Group Joint Stock Company, said: "The adjustment of land price list has been reviewed, inspected and appraised by the authorities for a long time. If the new land price in Ho Chi Minh City is issued, it will create a new 'wave' for the real estate market in Ho Chi Minh City, in which land prices in all areas will increase."

Mr. Ha Van Thien, Deputy General Director of Tran Anh Group Corporation.

"If land prices change, the cost of buying and selling land will increase, or compensation for site clearance will also increase, causing project construction costs to increase. From there, businesses will definitely have to adjust their strategies with product prices changing more than before. This will force housing prices to increase in all real estate segments," said Mr. Thien.

Talking to Nguoi Dua Tin , Mr. Nguyen Quoc Cuong, General Director of C-Holdings Joint Stock Company said: "To develop a real estate project, there are many factors that directly affect the price of the product. For example, legal matters, construction, land fund and conversion of land use fees.

The higher the costs that investors and businesses spend, the higher the product price must be. Therefore, if land prices are adjusted to increase, real estate prices in the future cannot decrease.

Mr. Nguyen Quoc Cuong (second from right).

As a long-time real estate investor, Mr. Quoc Truc (residing in Tan Phu, Ho Chi Minh City) commented: "The increase in land prices will increase housing prices, which reduces the ability to own a house for people with average and low incomes. Along with the development and promulgation of the state land price list, we need to pay more attention to policies to support people to access social housing and low-cost housing."

New land price list will help real estate market transparency

Speaking at the Social Criticism Conference on the draft Decision to adjust Decision 02/2020 of the Ho Chi Minh City People's Committee on land price list in Ho Chi Minh City. Ms. Nguyen Thi Kim Thuy, Vice President of the Vietnam Fatherland Front Committee of Ho Chi Minh City, hopes that the newly applied land price list will contribute to promoting compensation and site clearance for many projects in Ho Chi Minh City such as: Ring Road 3, Xuyen Tam Canal...

Because the new price is closer to the market, it is easy to get the consensus of the people because the support and compensation levels will increase. At the same time, the key projects and works invested by the budget will be on schedule, without being stuck.

The application of the new land price list will contribute to stabilizing and promoting the socio -economic development of Ho Chi Minh City and ensuring the market is increasingly transparent. Overcoming the shortcomings of the current land price list and ensuring fairness in implementing financial obligations on land for the people.

Source: https://www.nguoiduatin.vn/dieu-chinh-gia-dat-tai-tphcm-bai-2-nguy-co-bien-dong-thi-truong-bat-dong-san-20424081610531429.htm