The method of calculating the adjusted land price table that the land price consultancy unit is implementing is to take the current land price table and multiply it by the "coefficient" to get the new land price. Each district will have its own "coefficient" calculated based on the increase in land prices of the district. For example, District 1 is determined to have a land price increase of 5 times across the district (the coefficient will be 5), District 4 will increase 11.3 times across the district, District 5 will increase 5.6 times across the district, then the coefficients will be 11.3 and 5.6...
According to HoREA, the above method has many shortcomings, making the adjusted land prices in some districts incomplete and unrealistic. Typically, the adjusted land prices on all roads in districts 1, 4, and 5 are calculated with the same "coefficient", which is unreasonable and does not ensure fairness.
The Ho Chi Minh City Real Estate Association (HoREA) has just sent a document to the Prime Minister, giving comments on the method of calculating the adjusted land price list in Ho Chi Minh City. (Photo: ST)
Specifically, 100% of land prices in District 1 are being "applied" a common coefficient of 5. However, land prices and price increase rates in District 1 areas are inherently very different. Land prices on main roads in the central area such as Dong Khoi, Le Loi, Nguyen Hue, Le Duan ... can be multiplied by a "coefficient" of 5 because the increase here is quite high. However, on small roads such as Tran Dinh Xu, Dang Tran Con, Tran Quang Khai, Nguyen Canh Chan ..., the increase cannot be equal to that of large roads, if multiplied by the same "coefficient", it is considered unreasonable.
District 10 currently has 67 roads divided into 3 groups to build land prices, with "coefficients" of 5.12; 5.13 and 5.58 respectively. Although there is a division of coefficients, the actual difference of only 0.01 and 0.45 is insignificant and does not reflect the actual price difference in different areas of District 10. Similarly, the remaining districts such as District 4, 5, Phu Nhuan, are also being applied the "coefficient" calculation method with not much difference between roads.
Mr. Le Hoang Chau, Chairman of HoREA, said that this calculation method is not consistent with the provisions of Clause 1, Article 158 of the 2024 Land Law, which requires land price lists to be built according to area and location, and Article 18 of Decree 71 on the requirement to determine the area in building land price lists. In reality, it is impossible for all land locations in a district to have the same land price increase.
He cited that the remaining districts and Thu Duc City have built land prices with a wider range and much closer to reality. For example, District 3 has a "coefficient" of increase from 4 to 8 times, District 8 increases from 4 to 18 times, District 12 increases from 2 to 33 times, Binh Chanh District increases from 1.9 to 36 times and Hoc Mon District increases from 3 to 50 times...
HoREA also proposed not to calculate the adjusted land price list by multiplying the current price by the "coefficient" to calculate uniformly in districts 1, 4, 5, 10, and Phu Nhuan district; proposed to rebuild the draft adjusted land price list of these districts.
In addition, the land price of the adjusted Land Price List in 6 districts (including District 3, District 6, District 7, District 11, District 12, Binh Thanh) and 4 districts (including Hoc Mon, Cu Chi, Binh Chanh, Can Gio) and Thu Duc City is also being calculated at the highest level, higher than the "ceiling" of the coefficient frame (K) for residential land according to Decision 11/2024 on compensation prices when the State reclaims land. The Association also recommends that the highest land price should not be higher than the coefficient frame (K) for residential land.
Source: https://www.congluan.vn/horea-bang-gia-dat-tai-tp-hcm-bat-cap-khong-sat-thuc-te-post310719.html
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