(Dan Tri) - According to a survey, in reality, the selling price of townhouses on some streets such as Ba Trieu, Dinh Tien Hoang, Hang Dao... are much higher than the regulations in the new land price list of Hanoi City.
Selling price of townhouses in the center of Hanoi is one billion VND/m2
The Hanoi People's Committee has just issued a new land price list effective from December 20 to the end of 2025. Compared to the old land price list, the adjusted residential land price list is 2-6 times higher.
Notably, land prices on many streets in Hoan Kiem district including Ba Trieu (from Hang Khay to Tran Hung Dao), Dinh Tien Hoang, Hai Ba Trung (from Le Thanh Tong to Quan Su), Hang Dao, Hang Khay, Hang Ngang, Le Thai To, Ly Thuong Kiet, Nha Tho, Tran Hung Dao (from Tran Thanh Tong to Le Duan) have the highest price of more than 695.3 million VND/m2.
According to the pre-adjusted land price list, the highest urban land price in Hanoi's inner city is 188 million VND/m2 on three streets: Hang Ngang, Hang Dao, and Le Thai To. Thus, the highest adjusted land price is nearly 3.7 times higher than before the adjustment.
According to a survey by Dan Tri reporters, in reality, the selling prices of real estate in these areas are much higher than the regulations in the new land price list of Hanoi City.
Specifically, on Ba Trieu Street, the price of real estate for sale is fluctuating from 800 million VND to 1 billion VND/m2. A 256m2 house with 3 floors on Ba Trieu Street is being offered for sale at 256 billion VND, equivalent to 1 billion VND/m2. The seller said that the house is being rented to a fashion company for 300 million VND/month, with 2.5 years left on the lease.
Many townhouses are being sold at prices much higher than those specified in the new land price list (Screenshot).
On Dinh Tien Hoang Street, Hai Ba Trung, the advertised price of townhouses ranges from 800 million VND to 1.2 billion VND/m2. Notably, on these streets, there are also townhouses advertised for sale at 1.5-1.8 billion VND/m2.
For example, a townhouse in Hai Ba Trung with an area of 650 square meters is being sold for VND1,200 billion, equivalent to VND1.85 billion/square meter. Another townhouse on Dinh Tien Hoang Street with an area of 210 square meters is being sold for VND325 billion, equivalent to VND1.55 billion/square meter.
On Hang Dao, Hang Khay, and Hang Ngang streets, the common prices for townhouses for sale range from VND800 million to VND1.3 billion per square meter. Notably, there is currently a townhouse for sale on Hang Khay street for VND2 billion per square meter. This house has an area of 85 square meters, with a total selling price of VND170 billion. According to the seller, this house is "just a few steps away" from Hoan Kiem Lake walking street, next to Trang Tien commercial center.
On Le Thai To and Nha Tho streets, townhouses for sale are commonly priced from VND900 million to VND1.5 billion per square meter. Notably, on Le Thai To Street near Hoan Kiem Lake, some townhouses are priced at over VND2 billion per square meter. For example, a 3-storey house with an area of 58 square meters on this street is being offered for sale at VND139 billion, equivalent to VND2.4 billion per square meter.
On Ly Thuong Kiet and Tran Hung Dao streets, the selling price of townhouses ranges from 800 million VND to 1.4 billion VND/m2.
What do the experts say?
The 2024 Land Law, effective from August 1, will abolish the old land price framework (built every 5 years) and instead apply an annual land price list. The new price list will not be controlled by the land price framework and will be forced to be built close to market prices. Experts say the new land price list will impact real estate prices.
In a report sent to the Government Office in September, the Ministry of Construction calculated that if the 2024 land price is applied, the land use cost of real estate projects will increase significantly compared to before. Because the main costs affecting housing and real estate prices include 7 expenses, including: land use fees, site clearance compensation costs; project construction costs such as housing, real estate; related taxes and fees, etc.
Therefore, the new land price list close to the market price will increase land-related costs such as site clearance, land recovery compensation, land-related taxes and fees, etc., while costs related to land use fees often account for a large proportion of the total cost of a housing project, ranging from 7-20% for high-rise apartment projects and 25-50% for villa and townhouse projects.
Hang Dao Street, Hoan Kiem District, Hanoi (Photo: Duong Tam).
In addition, prices between projects vary depending on location and favorable conditions of technical infrastructure. Compensation costs for assets on land often account for an insignificant proportion, about 2%, of construction investment costs.
Through a preliminary survey of a number of projects, the Ministry of Construction believes that applying the new land price list will have a chain reaction, triggering a 15-20% increase in real estate and housing prices compared to before.
Mr. Dinh Minh Tuan - real estate expert - commented that the new legal framework from the 2024 Land Law will increase project implementation costs. One of the most important points of the 2024 Land Law is to remove the old land price framework, instead, based on the purpose, land use period, input information, other influencing factors... to determine the price.
According to him, the new land price list is close to the market price, causing the budget related to land such as land clearance costs, land recovery compensation, and land-related taxes and fees to increase. Basically, land owners will benefit more, and businesses with strong finances will find it easier to clear land according to market mechanisms. However, project development costs are also higher than before, so investors must increase product prices.
Expert Nguyen Thi Hong Van said that real estate prices continue to increase due to the expected increase in compensation and site clearance costs.
She argued that the 2024 Land Law has removed the regulation on land price framework, allowing localities to determine land prices according to the market annually instead of every 5 years as in the old law. This regulation helps to streamline the compensation and site clearance process, helping projects to be implemented quickly.
"Compensation prices approaching market prices along with strict compensation support will increase investment costs in the project, leading to increased real estate prices," Ms. Van stated her opinion.
Source: https://dantri.com.vn/bat-dong-san/bang-gia-dat-tai-ha-noi-695-trieu-dongm2-gia-rao-ban-dang-bao-nhieu-20241223012414611.htm
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