The issuance of a new land price list by Ho Chi Minh City, with increases many times greater than the old one, has attracted the attention of many participants in the real estate market.
The issuance of a new land price list by Ho Chi Minh City, with increases many times greater than the old one, has attracted the attention of many participants in the real estate market.
The new land price list in Ho Chi Minh City has increased from 4 to 38 times compared to the old list, depending on location and area. The highest land prices are on Nguyen Hue, Le Loi, and Dong Khoi streets (District 1), reaching 687.2 million VND/m2, more than four times the old price. Ham Nghi and Han Thuyen streets (District 1) also have prices around 430 million VND/m2, an increase of about four times. In suburban areas like Hoc Mon district, land prices have increased by nearly 39 times compared to the old list.
Regarding the new land price list in Ho Chi Minh City, Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association (HoREA), said that there will be four cases where land users will be affected by this adjustment.
 |
| There will be many cases where land users are affected by the adjustment of the new land price list in Ho Chi Minh City. |
Firstly, there are cases where individuals need to apply for recognition of land use rights for residential land. This primarily concerns 13,035 plots of land for which the land users have not yet been issued initial land use certificates.
Secondly, land users are applying to change the land use purpose for agricultural land and non-agricultural land within the same plot of land containing a house, where the land used for building the house already has a land ownership certificate, and is interspersed within urban or rural residential areas.
Thirdly, land users may apply to subdivide residential land, agricultural land, and non-agricultural land other than residential land, simultaneously changing the land use purpose to residential land for distribution to their children and grandchildren.
Fourth, this applies to individuals and households whose land and houses are located in "suspended planning" areas, such as new residential construction planning areas, residential renovation planning areas, or within "suspended projects," typically the Binh Quoi Thanh Da project.
For many years, residents in the stalled project have had their land use rights suspended. However, if the suspension is lifted, they may suffer a second disadvantage by potentially having to pay higher land use fees than before.
This expert also believes that the new land price list in Ho Chi Minh City has not yet had an immediate impact on the real estate market. The reason is that current real estate and commercial housing projects are primarily valued using the surplus method. However, when businesses acquire land use rights to implement projects, people tend to want to sell at higher prices than before, leading to pressure that pushes up housing prices.
From a business leader's perspective, Mr. La Cam Nam, General Director of An Phuc Loc Real Estate Company, believes that the new, significantly higher land prices in Ho Chi Minh City will cause public anxiety about price increases. This will create a domino effect, leading sellers to raise house prices themselves. Furthermore, the high land prices in Ho Chi Minh City will make it difficult for real estate developers to acquire land for projects, thus creating a market filtering process. Only developers with strong financial capabilities will be able to acquire land and develop projects.
"The market will have less supply. Developers cannot go looking for new planned areas to develop projects because they do not have the capacity to buy up individual plots of land from residents and then compensate them at market prices," Mr. Nam said.
Mr. Ta Trung Kien, Deputy Director of Wowhome Real Estate Joint Stock Company, also commented that having a new land price list that is basically close to market prices will be convenient for businesses when implementing projects. They will be able to factor in costs from the beginning and estimate various types of expenses.
“The selling price of the product to customers after deducting costs may be higher than before due to the application of the new land price list, but the investor can balance it by calculating the surplus. For investors whose projects have already handed over apartments to customers, if the new land price list is available, they will understand the costs and quickly process the ownership certificates for customers. However, if taxes are high, they have to pay more money, while the assets are apartments that have already been handed over to customers, so they feel burdened and it is unreasonable,” Mr. Kien shared, adding that the investor's future projects will certainly include all input costs, including land use tax. All updated prices will be higher than in the past.
Earlier, at a press conference on the afternoon of October 22nd, Mr. Nguyen Toan Thang, Director of the Department of Natural Resources and Environment of Ho Chi Minh City, also acknowledged that the adjustment of land price tables has affected the demand for land use conversion among some residents in the city.
To address the aforementioned impact, the Prime Minister has assigned the Ministry of Finance to develop and advise the Government on the issuance of a Decree stipulating the exemption and reduction of land use fees for cases not specified in Clause 2, Article 157 of the 2024 Land Law, including cases of land use conversion by households and individuals. Ho Chi Minh City will also strive to provide feedback to ensure that people owning agricultural land are not significantly affected.
Source: https://baodautu.vn/batdongsan/do-tac-dong-cua-bang-gia-dat-moi-tai-tphcm-d228142.html
Comment (0)