Land price issues continue to attract attention after the Department of Agriculture and Environment of provinces/cities drafted a proposal on the development of a first land price list to be announced and applied from January 1, 2026 with prices increasing many times compared to the current land price list.
According to the Vietnam Institute for Real Estate Market Research and Evaluation (VARS IRE), the land price list is an important tool in state management of land, both a basis for calculating financial obligations and budget revenue, and a legal basis for determining compensation, support and resettlement prices. Therefore, the construction of a land price list needs to be carried out carefully, scientifically and with a reasonable roadmap to accurately reflect the real value of the market, while avoiding disruption and creating financial pressure for people and businesses.
VARS IRE organized an in-depth discussion program on the draft land price list in the form of direct and online combinations, with the participation of economic, financial, real estate experts and business representatives. At the discussion, many opinions said that the issuance of a new land price list is an inevitable step in market transparency and narrowing the gap between state prices and market prices. However, the sharp increase in many areas is posing many risks to people, businesses and bank credit activities.
For people, especially households that are carrying out procedures for changing land use purposes, granting land use right certificates or receiving compensation, site clearance, the application of the new price list will increase financial obligations. The cost of changing the purpose of use, issuing red books or buying houses can exceed the affordability of middle-income people, increasing the risk of complaints and disputes in areas under compensation and site clearance.
Meanwhile, real estate businesses will be directly affected when compensation costs and land use fees - which account for a large proportion of the project cost structure - increase significantly, causing the total investment to increase. For projects under implementation, businesses may find themselves in a difficult position when costs exceed the estimate; for projects that have not yet started construction, financial planning will become more cautious. Many small and medium-sized enterprises may have to temporarily suspend or narrow investment, leading to the risk of reducing supply in the market, especially in the mid-range and affordable segments.
The increase in land prices also affects credit activities when banks have to adjust the mortgage asset valuation framework, tighten lending ratios to control bad debt risks. Increased housing prices and ownership costs can cause purchasing power to decline, especially the group of first-time home loans. If the land price list increases faster than the real value, the deviation between valuation and the market can affect credit quality and cause instability in the financial market.
For local authorities, the new land price list will help increase budget revenue through taxes, fees and land use fees, this revenue can be reinvested in infrastructure and urban beautification. However, the volume of documents that need to be updated on land prices will increase sharply, easily causing overload in handling administrative procedures, especially in the context of the two-level urban government model still being completed. On the other hand, increased investment costs may reduce the attractiveness of the investment environment, especially in potential areas but have not yet invested in synchronous infrastructure.
Experts from VARS IRE commented that the land price list is only meaningful when applied to a specific purpose, such as compensation and site clearance, but if applied generally to many other purposes such as calculating land use fees, auctions or tax calculations, the price list will lose its practicality. Determining the role of the land price list needs to aim at the long-term goal of transparency, fairness and sustainability.
It is necessary to clearly define the responsibility between the Central and local governments, in which the State issues a unified pricing method framework, while localities are responsible for operating and regulating according to reality. At the same time, it is necessary to ensure a reasonable adjustment roadmap, avoid causing "shock" to the market and sudden impacts on people and businesses.
The issuance of a new land price list from 2026 is an important step forward in land management, but for the policy to be effective, there needs to be a risk control mechanism, a clear roadmap and solutions to harmonize the interests of the State, businesses and people.
