New land price list of Ho Chi Minh City is still lower than market price

Since the land price adjustment coefficient (coefficient K) is no longer applied from August 1, Ho Chi Minh City is forced to readjust the land price list to apply it, and in fact the land price in the draft is lower than the market price.

On the afternoon of July 29, the Department of Natural Resources and Environment of Ho Chi Minh City held a press conference to provide information on adjusting the Land Price List according to Clause 1, Article 257 of the 2024 Land Law.

Mr. Nguyen Toan Thang, Director of the City Department of Natural Resources and Environment, said that the 2024 Land Law stipulates that the land price list issued by the provincial People's Committee according to the provisions of the 2013 Land Law will continue to be applied until December 31, 2025.

If necessary, the Provincial People's Committee shall decide to adjust the land price list according to the provisions of the new Law to suit the actual situation of land prices in the locality.

According to Mr. Thang, the new land price list will be applied in 12 cases and affect 12 corresponding groups of subjects. Of which, only 1 group will benefit, 3 groups will not be affected and up to 8 groups will be affected.

The Ho Chi Minh City Department of Natural Resources and Environment said that the new draft land price list, updated from actual transactions on the market and still being adjusted, will not increase real estate prices. Photo: Le Toan

Responding to a reporter's question about whether the Department was in a hurry to develop a new land price list, Mr. Thang said that although he really wanted more time to adjust the land price list, the land price list regulations applied from August 1 will no longer have regulations on adjustment coefficients like the 2013 Land Law and must update resettlement land prices.

“This is a legal regulation, it is impossible not to implement. This land price list will be applied until December 31, 2025. From January 1, 2026, adjustments will be made according to the regulations allowed by law. Maybe by the end of 2024, we will summarize and re-evaluate the impact of the land price list,” Mr. Thang said.

Regarding the principles and methods of implementation, Mr. Thang said they were all implemented in accordance with legal regulations.

The draft land price list is built based on the market database of land prices, land transaction data over the years through the Tax Department and the Land Registration Office. "That is, based on successful transaction records," he added, the agency also adjusted to give appropriate prices so there is no increase in real estate prices on the market.

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

For example, the land price on Dong Khoi Street according to the current land price list is 162 million VND/m2. Two years ago, when the City approved the specific land price for a ground floor house at 680 million VND/m2, if calculated by interpolation, the land price in this area corresponded to 970 million VND/m2.

Now, the expected adjusted land price for Dong Khoi Street is 810 million VND/m2.

At the press conference, many opinions also expressed concern that when people buy agricultural land, they must then pay an additional fee to change the land use purpose at market price, which is equivalent to buying land twice.

Regarding this issue, Mr. Thang explained that people who first bought agricultural land, now want to convert it to residential land, they have to pay a fee to change the land use purpose. Because the original purpose of use is different.

"If you buy residential land and have to pay extra to change the land use purpose, then it is considered paying twice," said Mr. Thang.

Source: https://baodautu.vn/batdongsan/bang-gia-dat-moi-cua-tphcm-van-dang-thap-hon-gia-thi-truong-d221064.html