Land price list expected to increase from 2026
From January 1, 2026, the land price list according to the 2024 Land Law will be applied. Many localities have been building new land price lists with high increases.
For example, the Hanoi Department of Agriculture and Environment is seeking opinions on the draft submission on the development of the first land price list to be announced and applied from January 1, 2026. Notably, this department proposed the highest land price in Hanoi for residential land on the roads in the old Hoan Kiem district at more than 702 million VND/m2. The highest increase proposal is for suburban areas, with an increase of 16% to 26%.
Commenting on this issue, economist Nguyen Quang Huy - CEO of the Faculty of Finance - Banking (Nguyen Trai University) - said that, besides opportunities, innovating the price list poses a big challenge: How to make the price list both close to the actual price and avoid causing "shock" to people, businesses and the real estate market.
Mr. Huy said that the construction of a new land price list is a necessary step forward to overcome the gap between "state price" and "market price" that has existed for a long time. However, Mr. Huy also noted that increasing the land price list poses some risks that need to be identified and handled promptly. If prices are adjusted too quickly, the financial costs of people and businesses will increase sharply, affecting their ability to pay and invest. Some projects may have to restructure financial plans, or even postpone implementation. The market may also have a "waiting" mentality, reducing short-term liquidity.
socialized, people in suburban areas and areas with land use conversion will be directly affected when financial obligations increase. Without an appropriate support mechanism, it is easy to develop anxiety and concern.
"Therefore, the management of land price policies needs to be both reasonable and reasonable; both ensuring market principles and maintaining social stability" - Mr. Huy emphasized.
Sharing the same view, Lawyer Nguyen Van Dinh - real estate legal expert - said that the increase in land price list will indirectly push up land prices. In case the State allocates land to implement the project, the enterprise will have to pay more, helping to increase revenue for the budget. Or in the case of land recovery by the State, people are also compensated close to market prices, helping to reduce disputes and complaints in the land sector.
However, Lawyer Nguyen Van Dinh said that, in another aspect, the land price list can disrupt people's lives, causing costs related to land use to increase.
For example, cases of paying land use fees when the State recognizes land use rights (issuing a first book), allowing the change of land use purpose of households and individuals; paying annual land rent; calculating land use tax; registration fees and especially income tax from transferring land use rights... are all based on the land price list.
According to the lawyer, if the land price list increases twice, the land use fee, tax, fee, fee... that people have to pay will be double the amount, while this is a group of entities with a large number. The land price list will certainly cause a wide-range, inclusive impact.
Overcoming disadvantages due to increasing land prices
According to Lawyer Nguyen Van Dinh, an important solution that management agencies need to consider is to adjust the system of legal documents related to tax obligations, fees, charges, land use fees, and land rents.
For example, for income tax from land use rights transfer of households and individuals, the current Law on Personal Income Tax stipulates a tax rate of 2% and is calculated according to the land price list. With the assumption of an increase in the land price list, the 2% tax rate needs to be studied to adjust down so as not to increase the tax burden for entities.
According to the lawyer, in fact, this solution has begun to be applied by the State. For example, according to Decree No. 103/2024 on land rent collection, in case of land lease with annual payment, the land rental price is calculated as a percentage multiplied by the land price for land rent calculation.
Decree 103 stipulates a percentage ranging from 0.25% to 3% (this rate was previously from 1% to 3%). Thus, Decree 103 has reserved that in case of 4 times increase in land prices, people's land rent will remain stable.
Adjusting legal documents on taxes, fees, charges... in land use in this direction will contribute to overcoming disadvantages caused by increased land prices, protecting people, especially vulnerable groups, helping to maintain social stability but still turning land into economic development resources thanks to "collecting correctly and fully" from investment projects using land.
