Widespread Impact on Multiple Targets
In an interview with PV Báo Lao Động, Mr. Võ Hồng Thắng, Director of the Service and Project Development Division of DKRA Group, stated that the land price table is expected to be adjusted by approximately 5-30 times, with some districts in HCMC reaching up to 50 times the current price (excluding the adjustment coefficient). Therefore, if approved, it will have a profound impact on many targets, particularly the two main groups: residents and real estate businesses.
Regarding the need to change the land use purpose, especially from agricultural land to non-agricultural land, the cost of converting to residential land may increase significantly compared to the current situation. However, the extent of the increase will depend on specific guidance from Circulars and Decrees.
From another perspective, for households affected by land clearance and compensation, those allocated for relocation will have certain advantages in terms of compensation prices and the determination of relocation prices, which are complex and time-consuming.
The application of the land price table to calculate land use tax is also expected to have a certain impact, increasing non-agricultural land use tax. However, the application of the new land price table will only be implemented after the current land price table expires on December 31, 2026.
"Put Yourself in the Shoes of the People to Understand"
Regarding the draft land price adjustment table, Mr. Lê Hoàng Châu, Chairman of the HCMC Real Estate Association (HoREA), suggested that the drafting agency should put themselves in the shoes of the people to understand and see why, at the current time, it is not necessary to issue a land price table applicable from August 1, 2024, but rather focus on developing the "first land price table" applicable from January 1, 2026, as stipulated in the 2024 Land Law.
"HoREA welcomes the Department of Natural Resources and Environment's announcement of the Draft Land Price Table, allowing HCMC residents to know the land prices in the near future and has been of great interest, even shocking, to the new land prices in the Draft Land Price Table. Especially for those who need to obtain a Certificate of Land Use Rights for over 13,035 plots of land without a Certificate of Land Use Rights, accounting for 0.7% of the total number of plots in the city; or those who need to legalize their land use rights for agricultural land plots located in urban areas, or those who need to split land plots while changing land use purposes to residential land, as illustrated above," said a HoREA representative.
According to this expert, the HCMC People's Committee should continue to apply the land price table and the current land price adjustment coefficient until December 31, 2025, as stipulated in Article 257, Clause 1, of the 2024 Land Law, to give residents sufficient time to complete procedures for obtaining a Certificate of Land Use Rights and "paying off" the old land use tax to reduce the financial burden on residents and achieve this goal, the city will earn the people's trust.
