According to that, there are 4 methods for determining land price, including: Comparative method, income method, surplus method, and land price adjustment coefficient method.
The comparative method is implemented by adjusting the price of plots of land with the same land use purpose, having a certain degree of similarity in factors affecting land price that have been transferred on the market, won the land use right auction, and completed the financial obligations according to the auction decision through the analysis and comparison of factors affecting land price after excluding the value of attached assets (if any) to determine the price of the land plot to be appraised.
The income method is implemented by taking the average annual net income per unit area of land divided by the average interest rate of savings deposits in Vietnamese currency with a 12-month term at commercial banks held by the State with over 50% of charter capital or total number of voting shares on the provincial level of the three consecutive years up to the end of the previous quarter with available data prior to the land valuation date.
The surplus method is implemented by taking the total estimated development revenue minus the total estimated development costs of the land plot, area, on the basis of using land in the most effective way (land use coefficient, building density, maximum number of floors of the structure) according to the approved land use plan, detailed construction plan.
The land price adjustment coefficient method is implemented by taking the land price in the land price table multiplied by the land price adjustment coefficient. The land price adjustment coefficient is determined through the comparison of land price in the land price table with market land price.
