How will land prices change when the Provincial People's Council is given more authority to adjust

Khánh Linh |

Reader Nguyen Nhu Ngoc (Lang Son) asked: "How will allowing the Provincial People's Council to increase or decrease land prices affect the real estate market? ".

Lawyer Nguyen Anh Thom - Hanoi Bar Association said that Clause 11, Article 1 of Decree 226/2025/ND-CP (effective from August 15, 2025) has been amended and supplemented by the Government, Clause 2, Article 20 of Decree 71/2024/ND-CP related to determining land location in the construction of land price lists.

The new regulation requires the People's Councils (PCs) at the provincial level, in addition to relying on Clause 1, Article 20 of Decree 71/2024 on determining land location, to base on the actual situation in the locality.

From there, the Provincial People's Council issued specific criteria to determine the location for each type of land, as well as the number of land locations in the land price list, at the same time as deciding on the land price list.

For plots of land and land with favorable or unfavorable factors in use, the Provincial People's Council is authorized to regulate price increases or reductions. Some specific land groups include:

Commercial and service land; non-agricultural production and business land (not commercial and service land) with high profitability, with the advantage of being used as a production and business premises.

Agricultural land in residential areas, within ward administrative boundaries; agricultural land within the same plot of land with houses.

Residential land has a more favorable or less favorable factor in terms of use value compared to plots of land in the same location in the land price list.

Previously, price increases or decreases only needed to be based on determining land location in the land price list; now it is mandatory to consider the actual situation in the locality.

The group of land subject to price adjustment is expanded to "agricultural land in the same plot of land with housing".

If previously it was mainly regulated to "increase prices" for land groups with advantages (such as commercial land, services, agricultural land in residential areas), now Decree 226/2025 has allowed both price increases and decreases depending on reality.

Khánh Linh
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