New land price list could increase 10 times current price

According to experts, the annual land price list will help make the real estate market more transparent and professional. However, this will also be the reason for the increase in selling and renting prices.

At the Conference "Propaganda, dissemination, and effective implementation of policies and laws on land, housing, and real estate business" organized by the Vietnam Real Estate Association in coordination with the Ministry of Natural Resources and Environment and the Ministry of Construction on October 15, one of the new points of the 2024 Land Law that many speakers and guests were interested in was the regulation on annual land price lists.

To confirm the "heat" of land prices, Dr. Can Van Luc, Chief Economist of BIDV, said that the Draft Land Law 2024 recorded more than 12 million comments, with 1 million comments on issues related to land prices alone. These numbers are proof that the story of the annual land price list receives great attention from public opinion.

Dr. Can Van Luc spoke at the event.

However, determining land prices is still a difficult problem. The expert from BIDV said that even land consulting and valuation units are "not daring to work for fear of making mistakes and being criminalized".

“Land valuation and consulting units need a reasonable methodology to ensure accurate information. As for the accuracy of land prices, they do not need to take responsibility, because this is something that always fluctuates,” said Mr. Luc.

The pressure of "fear of being wrong" on valuation units comes from the lack of information sources on land. According to Mr. Luc, the national database on the real estate market is the best source of input information, with the highest priority among the five sources of information, based on Decree 71/2024/ND-CP. However, this database source has not yet been completed.

In the future, to realize this data system, entities such as trading floors, real estate businesses, etc. need to actively contribute information about real estate transactions. Even if businesses intentionally conceal it, authorities need to have sanctions to handle it.

According to Dr. Can Van Luc, the annual land price list will be the premise for land valuation close to market price, at the same time removing shortcomings, especially the phenomenon of two prices. This will be the basis for enterprises to carry out compensation, site clearance, fulfill financial obligations to the State, calculate project investment costs and efficiency, etc.

However, Mr. Luc also emphasized that applying a land price list closer to the market could increase land use costs, land prices, selling prices, and real estate rental prices. It is expected that after the official land price list is implemented in 2026, land prices in some localities are expected to increase from 2 to 7 times, even 10 times higher than the current land price list.

Speaking to reporters of the Investment Electronic Newspaper on the sidelines of the Workshop, Associate Professor, Dr. Nguyen Quang Tuyen, Head of the Faculty of Economic Law, Hanoi Law University, affirmed that bringing the land price list closer to the market will certainly increase the land costs of enterprises, thereby making the price level of real estate projects higher.

“Businesses are not charities, so it is difficult to ask them to lower their selling prices, while input costs are rising. To cool down real estate prices, the government needs to proactively use budget capital to increase supply, specifically social housing projects, to regulate the market,” said Mr. Tuyen.

Source: https://baodautu.vn/batdongsan/bang-gia-dat-moi-co-the-tang-gap-10-lan-gia-hien-tai-d227494.html