Decision No. 71/2024/QD-UBND of Hanoi People's Committee on adjusting, amending and supplementing Decision No. 30/2019/QD-UBND promulgating regulations and land price list of all types in the city, officially effective from December 20, 2024 to the end of 2025, has had major changes.
Accordingly, based on the new decision, land prices in the Land Price List in the capital will increase from 2 to 6 times depending on the area.
In which, the district area increased from 190 - 270% compared to the old level; in districts and communes of the town about 150 - 190%; commercial service land in the central area increased by 50 - 100%, suburban area 30 - 50%; agricultural land price increased by about 15%.
The actual investigation of Lao Dong reporters shows that the above increase in adjustment level has somewhat affected people when they have to pay land use fees to the State when they want to change the purpose of use, this fee also increases correspondingly with the adjustment level of the new Land Price List.
Ms. Nguyen Thi Thao (Long Bien, Hanoi, name changed) said that her family has had more than 1,400 square meters of land in Long Bien since 1970. The red book was issued in 2003, but only 300 square meters is residential land, the remaining 1,100 square meters is garden land.
According to Ms. Thao, if now the land is divided among her children to each build a house, each square meter of land converted from garden land to residential land will cost about 15 million VND. With the area of garden land, if converted to residential land, it is expected to cost about 15 billion VND.
Recently, Mr. Nguyen Quan (in Ha Dong district, Hanoi) invested in agricultural land and perennial crop land in Thach That and Chuong My districts (Hanoi) but has not yet converted it to residential land.
According to Mr. Quan, in these areas, land prices have increased 2-4 times, so the cost of converting to residential land will also increase. "I am considering options, temporarily suspending the conversion at this time to wait for further market developments in the coming time" - Mr. Quan said.
Professor Dang Hung Vo - former Deputy Minister of Natural Resources and Environment (MONRE) - assessed that in reality, there are different opinions on whether the land price list is low or high.
Professor Vo emphasized that the land price list must be equivalent to the market and suitable for the market. The question is how to implement it? This is the story of the State's policy.
In which cases 80% of the market principle is applied, in which cases 20% of the market principle is applied, specific cases will have different application rates. How to apply to attract investment, develop the economy, and ensure social security depends on the State's regulatory policy.
Mr. Le Van Binh - Deputy Director of the Department of Land (Ministry of Natural Resources and Environment) - said that real estate projects (housing, resort real estate) do not apply land price lists but apply specific methods for calculation.
Land price list is mainly to collect financial obligations of individual households and cases of annual land lease projects; other cases are auctions and bidding.
Regarding the cost of converting land use to residential land, Mr. Binh assessed that in Hanoi, converting agricultural land in residential areas or agricultural land attached to residential land to residential land now has many problems.
Previously, the conversion was very difficult because the price for people to convert was only half the price of residential land. Now, it is done "fairly" according to the price list, converting residential land in residential areas will apply the price list of residential land in residential areas.
According to the Deputy Director of the Land Department, the land price list is close to the market price so that there is no difference between the two prices.
Some other opinions say that the new land price list has a negligible impact on real estate prices, but also helps slow down the speculative wave, and people receive compensation close to the actual value.
