Risk of market disruption
According to the report of the Ministry of Finance at the meeting of the Steering Committee for Price Management in the second quarter of 2025, the Ministry of Agriculture and Environment (MONRE), the removal of the land price framework along with new regulations on price lists according to the 2024 Land Law has contributed to expanding the management and development of the real estate market in a transparent direction, approaching market prices.
However, some localities have not promptly monitored common land price fluctuations in the market, leading to the land price list being significantly lower than the actual price.
The phenomenon of large differences between starting prices and winning prices in many localities has appeared, raising concerns about taking advantage of auctions for profit, disrupting the market and negatively affecting the investment, business and real estate market environment.
The Ministry of Natural Resources and Environment also stated: The decentralization and delegation of authority in determining and deciding on land prices has initially been effective, contributing to the liberation of land resources, promoting the disbursement of public investment capital.
However, many localities are facing difficulties due to lack of human resources and experience, not having fully issued necessary guiding documents such as economic - technical norms, organizational structure, data, etc., leading to slow implementation of the Law and affecting land access and handling administrative procedures.
The Ministry of Natural Resources and Environment predicts that when localities simultaneously issue new land price lists according to the 2024 Land Law, land prices will have large fluctuations with different frontages between localities, causing many impacts on the market.
Land prices increase sharply in many places
In Da Nang, from today, July 7, 2025, Decision 45/2025/QD-UBND to adjust and supplement land prices in the area takes effect. This is the second time in more than half a year that Da Nang has adjusted land prices.
According to the new decision, the average land price increase rate is high compared to the old land price list, an average increase of 125-170% compared to the beginning of the year. A typical example of the most expensive road in Da Nang is Bach Dang Street, from Le Duan to Nguyen Van Linh with a new price of more than 340 million VND/m2, an increase from more than 286 million VND/m2 from January 2025. Before 2025, according to the land price list, this road section was determined to be only about 148 million VND/m2.
In particular, in coastal areas, Ngu Hanh Son district, land prices on unnamed streets in residential areas also increased by 157-172% - showing the level of simultaneous adjustment from the center to the suburbs.
In Hanoi, the new land price list (applicable from the end of 2024 to the end of 2025) recorded an increase of 2-6 times compared to the old price list. Some central streets such as Hang Dao, Le Thai To, Hai Ba Trung, Nha Tho... have land prices up to nearly 700 million VND/m2, the highest in the country. The new price list also stipulates price reduction according to the distance from the land plot to the street, but in general, the new price level is still very high.
Need a transition period to avoid "priced shock"
The merger of provinces from July 1 also raises the issue of how to maintain land prices in the same locality. For example, in Ho Chi Minh City, the land price in Thu Duc area (old) is regulated at about 88 million VND/m2, while in Vung Tau it is 34 million VND/m2, in Thu Dau Mot area (old Binh Duong) it is only about 20 million VND/m2. This large difference shows that if a unified price list is applied, it will cause price shock, affecting both people and the market.
Therefore, the proposal of the Department of Natural Resources and Environment of Ho Chi Minh City to continue applying 3 separate land price lists for each area (old Ho Chi Minh City, old Binh Duong, old Ba Ria - Vung Tau) until the end of 2025 is considered reasonable and practical, avoiding creating a "virtual fever" due to the policy.
Speaking with Lao Dong, Associate Professor, Dr. Nguyen Dinh Tho, Deputy Director of the Institute of Strategy and Policy on Agriculture and Environment, said: Land valuation always faces two pressures: Approaching market prices to be transparent and generate revenue, but at the same time maintaining the ability of businesses and people to access land. If it is tilted towards one side, it can easily cause market imbalance".
According to Mr. Tho, when the People's Committees of provinces build land price lists, they must carefully consider between increasing land prices to suit the market and controlling land prices to increase access to land, support businesses and reduce costs for people. Finding a reasonable balance between these two factors is the "key" to perfecting the land valuation system, contributing to sustainable socio-economic development.
Experts agree that: The old land price should be maintained during the transition period (1-3 years), then a unified land price list should be built, but according to the principle of zoning - clearly dividing core areas, satellite areas, rural areas to avoid applying a single price for all areas.
In the document sent to the Ministry of Finance, the Ministry of Natural Resources and Environment proposed: People's Committees of provinces and cities direct the review of land price lists; if the price is not suitable, it needs to be adjusted according to local reality according to the provisions of Article 17 of Decree 71/2024 applicable until December 31, 2025.
At the same time, review the auction of land use rights, strictly handle violations, and prevent auction profiteering. Strengthen the review and updating of the system of legal documents on prices. Expand the scope of application of land price lists, narrow cases of determining specific land prices. Clarify the responsibilities of agencies in calculating financial obligations related to land. Inspect, check and strictly handle cases of intentional delay in housing projects, tax evasion, incorrect declaration of transfer prices, violations in auctions...
In particular, localities need to publicize planning, adjust land price lists, and announce deposit cancellation subjects to limit auction manipulation.
Merging provinces and cities is a strategic step in restructuring the apparatus and developing the region. It is necessary to control so that land prices do not increase abnormally after the merger to avoid consequences such as: Unequality in land access, bubble market and negative impact on local finances.
Hanoi strengthens state management of agriculture, environment, land
On July 4, the Hanoi People's Committee issued Official Letter No. 3903/UBND-NNMT on organizing the implementation of tasks and powers of competent agencies and individuals in the field of state management of agriculture, environment and land.
The City People's Committee directs the City's Departments and branches and the People's Committees of communes and wards, based on their functions and tasks, to focus on studying Decrees No. 131/2025/ND-CP, 136/2025/ND-CP, 151/2025/ND-CP and related regulations, organizing the implementation of tasks and powers in the fields of agriculture, environment and land in accordance with legal regulations.
Strictly implement documents No. 3865/UBND-NNMT dated July 2, 2025 on compensation, support, and resettlement when the State reclaims land; Notice No. 394/TB-VP dated June 22, 2025 to local authorities at both levels in the fields of agriculture, environment, and land.
