The Land Law 2024, effective on August 1, has removed regulations on land price brackets. Instead, each locality will decide on its own land price list and adjust it annually, instead of every 5 years as before. At the same time, the land price list must be adjusted and supplemented according to market fluctuations.
According to the new Land Law, people who are compensated for agricultural land will also be entitled to a number of additional costs such as support costs for moving livestock, costs to support dismantling and relocation of assets attached to land... People will also enjoy more benefits regarding compensation and resettlement when land is recovered according to the Land Law 2024.
Notably, households and individuals using agricultural land that are eligible for compensation under the law when the State recovers land are compensated in the form of agricultural land or in money or in land for a specific purpose. use other than the type of land recovered or by housing.
Many experts believe that in the short term, removing the land price bracket will increase land prices, site clearance compensation, and investment costs, thereby pushing up real estate prices. In the long run, the market is determined by the balance of supply and demand, becoming more transparent and sustainable.
However, by January 1, 2026, provinces and centrally run cities will apply the new land price list. Every year, the Provincial People's Committee must submit to the Provincial People's Council to adjust, amend and supplement the land price list, applicable from January 1 of the following year.
Thus, agricultural land compensation prices do not increase immediately at the same time as the new Land Law is applied. However, some localities are quickly completing the adjusted land price list. If completed and applied soon, compensation land prices will increase compared to before applying the new law.
Recently, Ho Chi Minh City announced a draft adjusted land price list applicable for the remaining months of the year. At the meeting in early August, Mr. Nguyen Toan Thang - Director of Ho Chi Minh City Department of Natural Resources and Environment (TNMT) said that adjusting the land price list includes 7 steps and currently the Department has completed 6 steps.
"All data collected by the consulting unit throughout the city has been calibrated and transferred to the assisting team of the Ho Chi Minh City People's Council for review and appraisal" - he said.
Notably, in the draft promulgating the Decision to adjust the land price list in Ho Chi Minh City, the Department of Natural Resources and Environment proposed to adjust land prices in many districts by an average increase of 5-10 times. Some localities in suburban and suburban areas are expected to adjust 15-50 times compared to the present.
