With new land price list, District 1 streets have increased sharply in price, close to market price.

Land prices increase sharply to suit the market

On the afternoon of July 29, the Department of Natural Resources and Environment of Ho Chi Minh City held a press conference on adjusting the new land price list of Ho Chi Minh City, which will be applied from August 1.

Responding to a question from a reporter from Nguoi Dua Tin , Mr. Nguyen Toan Thang, Director of the Department of Natural Resources and Environment of Ho Chi Minh City, affirmed that the new land price list will not increase land prices dozens of times in the city center as feared.

"The new land price list is built based on previous data on actual real estate transaction prices, or market prices, and then through research and scientific evaluation to get the new price list," said Mr. Thang.

Specifically talking about land prices in the central area of ​​Ho Chi Minh City, Mr. Thang gave an example of Dong Khoi Street (District 1) according to the new land price list, the land price will be 810 million VND/m2. Previously, according to the old land price list, this area had a land price of 162 million VND/m2.

When using the current land price list, the authorities have recorded transactions in the Dong Khoi street area (District 1) at times reaching 970 million VND/m2.

Therefore, a representative of the Department of Natural Resources and Environment of Ho Chi Minh City said that the new land price list will bring the regulated land price closer to the market price, while not causing disruption to the real estate market.

Leaders of the Department of Natural Resources and Environment of Ho Chi Minh City at a press conference on the afternoon of July 29.

Providing more information about the time of application of the new land price list, a representative of the Department of Natural Resources and Environment said that the new Land Law has been decided by the National Assembly to take effect from August 1, 2024.

Therefore, the authorities need to advise the People's Committee of Ho Chi Minh City to build a new land price list, without coefficients like the current land price list.

To solve this problem, the drafting team has followed a shortened process and a special mechanism to build a new land price list faster and in time for the 2024 Land Law to take effect.

In addition, the 2024 Land Law stipulates that the land price list is applied to 12 cases to carry out administrative procedures, so it is important to social life.

If the adjusted land price list is not implemented in the city, it will lead to "blockage" in public investment disbursement as well as administrative procedures for people and organizations.

The adjustment of the Land Price List according to the Land Law 2024 is carried out according to market principles. However, when applied, it will affect a number of groups of subjects.

No land price fluctuations expected

According to the synthesis data of Ho Chi Minh City, the expected land price in the draft adjusted Land Price List has increased compared to the land price list in Decision No. 02/2020/QD-UBND dated January 16, 2020 of the People's Committee of Ho Chi Minh City about 7 times.

However, the current land price list when used must be multiplied by the land price adjustment coefficient of 3.5 times. Therefore, the actual land price list adjusted this time only increased about 2.5 times.

Accordingly, the land price according to the adjusted expected land price list is only equivalent to 70% of the market price level.

Also according to statistics from the Department of Natural Resources and Environment of Ho Chi Minh City, land prices in 2024 and previous years show that land prices have gradually stabilized, gradually reflecting the true value of real estate on the market.

However, in the near future, there will be no fluctuations in land prices due to the large inventory of apartments and townhouses. Although the demand for land and office rentals has decreased, prices remain high.

Therefore, the representative of the Department of Natural Resources and Environment of Ho Chi Minh City said that the decision to adjust the price list of land types must take into account the trend and level of fluctuations of the market, ensuring that the price list of land types is similar to the market land price.

When applying the new land price list, it will have a positive impact on the real estate market in the coming time, impacting macro policies, stimulating production and consumption such as slowing down, extending, reducing tax collection, land use fees, restructuring the economy including monetary and credit policies, supporting inventory clearance.

Through preliminary assessment, the group with the most influence is the subject of land use purpose conversion and land use rights recognition of households and individuals.

However, comparing the 2013 Land Law with the 2024 Land Law: cases of stable land use before October 15, 1993 do not have to pay land use fees; in cases where the area exceeds the limit, the land price list of 2005 will be collected.

The remaining land use cases are considered based on the origin and time of land use to have appropriate collection rates.

According to the draft Decree on land use fee and land rent collection that the Government is about to issue, the collection rate will be considered based on the time frame from 10% to 50% of the expected adjusted land price list.

In addition, land users belonging to policy families, meritorious people, and poor households will have land use fees exempted or reduced according to Government regulations.

Thus, the expected adjusted land price list is actually bringing the regulated land price closer to the common market level step by step, contributing positively to fairness and transparency for land-using groups and avoiding losses to the State budget. Land use will therefore be more economical.

Source: https://www.nguoiduatin.vn/tphcm-co-bang-gia-dat-moi-duong-pho-quan-1-tang-gia-manh-sat-thi-truong-204240729164359173.htm