Adjust land prices to suit the market
Recently, the Office of the Ho Chi Minh City People's Committee has submitted a document to the Prime Minister to seek guidance on calculating financial obligations on land, for records after the effective date of the 2024 Land Law until the issuance of the adjusted land price list, according to the provisions of Clause 1, Article 257 of the 2024 Land Law.
According to information from the document of the Ho Chi Minh City People's Committee, the land price of the land price list for special urban areas is only 162 million VND/m2 at most, so the land price list of Ho Chi Minh City according to the 2013 Land Law in recent years is no longer suitable and does not accurately reflect the actual situation of land prices in the locality.
The draft to adjust land prices in Ho Chi Minh City is having many different opinions. Not only businesses but also people still have many concerns.
Every year, Ho Chi Minh City submits a report to the Ho Chi Minh City People's Council to approve the land price adjustment coefficient (coefficient K) applicable to each group of subjects and each area with different socio-economic conditions...
According to information from the Ho Chi Minh City People's Committee, from August 1, 2024 (the effective date of the 2024 Land Law), there is no regulation that the Ho Chi Minh City People's Committee annually submits to the City People's Council for approval of the land price adjustment coefficient (K) as in the 2013 Land Law, so the land price list applied after August 1, 2024 will not apply the 2024 land price adjustment coefficient.
Real estate market transparency
At the Conference on social criticism of the draft decision to adjust Decision 02/2020 of the Ho Chi Minh City People's Committee on land price list in the city organized by the Vietnam Fatherland Front Committee of Ho Chi Minh City. Mr. Nguyen Toan Thang, Director of the Department of Natural Resources and Environment of Ho Chi Minh City shared: The land price list according to Decision No. 02/2020 dated January 16, 2020 of the City People's Committee has not approached the market land price, so it is necessary to adjust it to comply with the provisions of the Land Law 2024; remove bottlenecks in public investment disbursement and carry out administrative procedures for people and organizations.
In addition, the adjustment of the land price list aims to ensure compliance with legal regulations, contribute to stabilizing and promoting economic development, ensuring the market is increasingly transparent. Overcoming the shortcomings of the current land price list and ensuring fairness in implementing financial obligations regarding land for the people.
Ho Chi Minh City finds it necessary to amend and adjust the Land Price List built according to the 2013 Land Law (Decision No. 02/2020/QD-UBND dated January 16, 2020 of the Ho Chi Minh City People's Committee) to suit the actual situation of land prices in the locality.
This also gradually approaches the market price which will be issued from January 1, 2026 according to the provisions of the Land Law 2024.
However, the Ho Chi Minh City People's Committee also said that it is facing difficulties and obstacles in resolving administrative procedures regarding financial obligations in the transition period from August 1, 2024 to the time the land price list is adjusted according to the provisions of Clause 1, Article 257 of the 2024 Land Law is issued.
Specifically, the problem is as follows: From August 1, 2024, if the unadjusted land price list in Decision No. 02/2020/QD-UBND dated January 16, 2020 is applied without multiplying by the 2024 land price adjustment coefficient, it will not be suitable for the current actual land price conditions in the locality.
Meanwhile, if we continue to apply the unadjusted land price list in Decision No. 02/2020/QD-UBND dated January 16, 2020 multiplied by the land price adjustment coefficient in 2024, there are no regulations guiding its implementation.
Ho Chi Minh City finds it necessary to amend and adjust the Land Price List built according to the 2013 Land Law (Decision No. 02/2020/QD-UBND dated January 16, 2020 of the Ho Chi Minh City People's Committee) to suit the actual situation of land prices in the locality.
Therefore, in order to avoid congestion in the process of resolving records related to financial obligations on land arising in the period from August 1, 2024 until the land price list is adjusted according to the provisions of Clause 1, Article 257 of the 2024 Land Law is issued, the People's Committee of Ho Chi Minh City recommends that the Prime Minister assign the Ministry of Natural Resources and Environment and the Ministry of Finance to guide the implementation of resolving the above-mentioned problems so that Ho Chi Minh City has a basis for implementation.
Consulting people on the Draft adjusted land price list
Regarding the Draft adjusted land price list in Ho Chi Minh City, recently there have been many mixed opinions from experts, businesses, and people, causing a "wave" of multi-dimensional information about the adjustment of the land price list.
The Ho Chi Minh City Party Committee has announced information about organizing online consultation of people living in Ho Chi Minh City on the Draft adjusted land price list.
The Ho Chi Minh City Party Committee has announced information about organizing online consultation of people's opinions on the Draft adjusted land price list.
Specifically, the survey period is from August 19 to August 23. Of particular note are the contents of questions 5 and 7 of the opinion survey. Specifically, the survey is about the impact of the land price list, some information related to real estate transactions such as taxes, transfer fees; the difference between land prices according to the state price list and land prices on the free market.
Impact on low- and middle-income earners in buying houses or renting land; increased compensation costs for land clearance; lack of social housing projects; land valuation; risk of real estate bubble.
In addition, in the consultation section, there is also a proposal from the Ho Chi Minh City Department of Construction that boarding houses wishing to operate must ensure a minimum floor area of 5m2/person, a 4m wide alley, no more than 100m from the main road and have an emergency exit.
The adjustment of land prices in Ho Chi Minh City is having a huge impact on people.
Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association (HoREA), said that adjusting the land price list is a very important issue related to the socio-economy and social security of the people. He suggested that the agency drafting the land price list should put itself in the people's shoes to understand and see clearly why the land price list should not be issued at this time.
Talking to Nguoi Dua Tin , Mr. Minh Trieu (residing in Thu Duc City, Ho Chi Minh City) said: "In recent days, information about adjusting land prices in Ho Chi Minh City has appeared, making many people both happy and worried. Many people who benefit are happy because land and house prices will increase rapidly if the Law is applied. Many people are worried because land taxes will increase, making it difficult to access home buying."
Information about land price adjustment in Ho Chi Minh City has been a "hot" topic in recent days.
"The adjustment of land prices has been carefully studied by state agencies and must be in accordance with the current Law. However, people like us also expect opinions on the above issue, so when the City has information to survey people, it is clearly listening to people and businesses. This shows transparency. Adjusting land prices to match the market is in line with the trend and must be done sooner or later. But how to do it in a way that is suitable, easy for people to access, and does not cause difficulties for people will be supported," said Mr. Trieu.
With the adjusted land price list, land prices in many places have increased.
The new draft land price list developed by the Department of Natural Resources and Environment of Ho Chi Minh City is commonly 10 - 20 times higher than the land price of the current Land Price List.
According to information from the Ho Chi Minh City Real Estate Association (HoREA), when adjusting land prices, the area of one district and four counties had land prices increase in some locations over 30 times, and in particular, some locations in Hoc Mon district had prices increase up to 51 times.
According to the draft land price list, the highest land price in Ho Chi Minh City is 810 million VND/m2 of the 3 streets Dong Khoi, Le Loi, Nguyen Hue (District 1), 5 times higher than the land price of 162 million VND/m2 of the Land Price List according to Decision No. 02/2020.
Link to survey people's opinions on the Draft land price adjustment in Ho Chi Minh City:
https://docs.google.com/forms/d/e/1FAIpQLSdzkAUU2SkFpiPQ6ZhtiMoUaRUmARbjPRkUUjcIDyCYcEI6fQ/viewform
Source: https://www.nguoiduatin.vn/tphcm-xin-huong-dan-go-vuong-dieu-chinh-bang-gia-dat-204240819230116871.htm
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