The People's Committee of Ho Chi Minh City has just issued a new land price list effective from October 31, 2024 to December 31, 2025.
According to Mr. Le Hoang Chau - Chairman of the Ho Chi Minh City Real Estate Association (HoREA), compared to the residential land price list of the draft Adjusted Land Price List (draft land price list) announced by the Department of Natural Resources and Environment on July 29, 2024, the residential land price list in the decision of the People's Committee of Ho Chi Minh City on October 22 (new land price list) has been adjusted and changed reasonably.
The new land price list has been synchronously adjusted from the highest land price to lower land prices in each district, Thu Duc City according to each land location and adjacent land locations of each locality.
Typically, the land price of the parallel road of National Highway 22 (from Nguyen Anh Thu Street to Ly Thuong Kiet Street) in Hoc Mon District is VND32.3 million/m2, a decrease of 54.5% compared to the price of VND71 million/m2 according to the draft land price list.
The new land price list overcomes the unreasonable land price situation of the draft land price list in District 1, District 4 and District 5.
The draft land price list has multiplied the old land prices by coefficients of 5, 11.3 and 5.6 respectively to come up with the new land prices without adjusting them according to each land location.
The new land price list has been adjusted to each land location of the roads in each district to be more reasonable.
Mr. Le Hoang Chau commented that the new land price list ensures fairness between those who have fulfilled their financial obligations to pay land use fees in the first 10 months of 2024 and those who will fulfill their financial obligations to pay land use fees from the effective date of the Decision from October 31, 2024.
However, with increasing land prices, land use fees will also increase.Therefore, Mr. Le Hoang Chau suggested that the Department of Natural Resources and Environment pay attention to 4 cases of land users who are affected by the unwanted impacts of the new land price list, including: Individuals who need to apply for recognition of residential land use rights, first of all, more than 13 thousand plots of land for which land users have not been granted the first Certificate; Land users request to change the land use purpose for the agricultural land area, non-agricultural land in the same plot of land with houses, while the land area for housing construction has a "pink book" located in the urban area, rural residential area; Especially individuals and households with houses and land located in suspended planning areas, typically the Binh Quoi Thanh Da project, for many years, people have had their land user rights suspended, and if the suspension is removed, they may be disadvantaged a second time when they may have to pay higher land use fees than before.
In terms of the market, the Association assesses that the new land price list will not immediately impact the real estate market because current real estate and commercial housing projects are mainly priced according to the surplus method; but will affect the real estate market at the stage when real estate enterprises receive the transfer of land use rights to implement real estate projects, urban areas, commercial housing, social housing, people will have the mentality of wanting to sell at higher prices than before, leading to pressure to increase housing prices.
Therefore, HoREA proposes that the State take effective measures to control the activities of speculators, land brokers, and dishonest enterprises who can take advantage of the new land price list to stimulate prices, inflate land prices, disrupt the market for the purpose of illegal profiteering.
