Hanoi land prices increase 2-6 times, making the dream of settling down difficult

The Hanoi People's Committee has just issued an adjusted land price list effective until December 31, 2025. Compared to the old land price list, the adjusted land price list is 2-6 times higher.

Land prices in inner-city districts have generally increased by 190-270% compared to the old level. The increase in districts and communes in the town is about 150-190%. Commercial and service land in the central area is 50-100% more expensive, in the suburbs 30-50%. Meanwhile, agricultural land prices have increased by about 15%.

According to regulations, the new land price list of Hanoi City will be applied to calculate land use fees when the State recognizes land use rights, changes land use purposes; calculates land rent; calculates related taxes such as land use tax, income tax from land use rights transfer; calculates fees in land management and use; calculates compensation for damage caused in land management and use; calculates starting prices for land auctions...

Therefore, many people are worried that housing prices will increase along with land prices, making the already difficult dream of settling down even more difficult for people.

Ms. Nguyen Thi Nam - Head of the Department of Natural Resources and Environment of Ba Vi district said that the adjusted land price list helps speed up land recovery and specific valuation, but also causes difficulties for the poor and households that cannot afford to pay.

If land prices exceed people's ability to pay, illegal construction on garden land may increase. This causes difficulties for management agencies and disrupts local construction order.

Mr. Vu Cuong Quyet - General Director of Dat Xanh Mien Bac said that for businesses, having a land price list will support all stages, helping to appraise land prices closely following market prices. The adjusted land price list is an important basis for businesses to determine land taxes.

However, if land tax is determined according to market price, the land use conversion tax of enterprises will be higher, thereby, the output real estate selling price for buyers will be higher.

However, Mr. Quyet said that although the new land price list will speed up the progress of calculating land use fees for ongoing projects, it will also contribute to increasing the housing supply for the market. When the supply is abundant, investors will not dare to push prices too high but must balance, keeping prices moderate to match supply and demand.

Professor Dang Hung Vo - former Deputy Minister of Natural Resources and Environment said that the new land price list of Hanoi City needs to avoid causing policy shock, ensure it is suitable for the people, and not cause social imbalance.

To achieve this goal, according to Professor Dang Hung Vo, it is necessary to use additional tools in land clearance and auctions, instead of relying solely on land price lists. Measures such as avoiding the situation of empty land acquisition during land clearance; or reapplying the method of determining specific land prices in auctions, help exploit land resources more effectively and reduce conflicts of interest between parties...