The Hanoi People's Committee has just issued a Decision to amend and supplement the content of Decision No. 30/2019/QD-UBND on the price list of land types in the city.
According to calculations, compared to the 2019 land price list, the adjusted land price list will have an increase of 2 - 6 times for residential land.
This new land price list is the basis for calculating compensation, determining land prices for resettled people and people receiving compensation for residential land; calculating land use tax and personal income tax from the transfer of land use rights.
The price list is also used to adjust fees and charges related to land use, transfer or when carrying out administrative procedures on land...
According to the new land price list, in 5 districts that are about to become districts in Hanoi such as Thanh Tri, Gia Lam, Dong Anh, Hoai Duc, Dan Phuong, the average land price after adjustment has increased by about 200%. Of which, Thanh Tri district is the place with the highest land price increase.
For example, land prices on Nghiem Xuan Yem Street (section through Tan Trieu Commune and from Cau Dau to the end of Thanh Liet Commune), Nguyen Xien Street (section through Tan Trieu Commune) and Pham Tu Street (from the border with Dai Kim Ward to the intersection with Cau Buu Street at the Phuc La - Cau Buu intersection) in Thanh Tri District are currently at the highest level of nearly 117 million VND/m2.
Compared to the 2019 land price list, the new price on Nghiem Xuan Yem Street increased by nearly 520%; Nguyen Xien Street increased by about 260%.
In Gia Lam district, Ha Huy Tap street (Yen Vien town) has the highest price after adjustment at 68.14 million VND/m2, an increase of 195%; Nguyen Duc Thuan street (Trau Quy town) is 65.13 million VND/m2, an increase of more than 310%; the area bordering National Highway 5 and National Highway 1B has a price of 64 million VND/m2 after adjustment.
Assessing the impact of the new land price list, Associate Professor Dr. Nguyen Quang Tuyen - Head of the Faculty of Economic Law (Hanoi Law University) - commented that the adjustment of the land price list will more or less affect input costs, so whether we want it or not, real estate prices may increase.
Sharing the same view, many real estate experts also believe that the new land price list affects the cost of compensation for site clearance because land users tend to demand higher compensation than before, meaning input costs increase.
When this cost is pushed higher, it will have a chain effect, increasing the price of buying and renting houses as well as factories in industrial parks.
In particular, Hanoi's land price list is increasing sharply compared to before, which may affect housing prices in the capital, mainly new projects that have not yet been formed. Hanoi's announcement of a new land price list may affect apartment prices, which tend to increase in the near future.
