The leader of the Ho Chi Minh City People's Committee emphasized that the adjusted land price list complies with legal regulations, is suitable for the practical situation of the city and ensures the harmony of interests of three parties.
On October 22, the Ho Chi Minh City People's Committee announced Decision 79/2024 dated October 21, 2024 amending and supplementing Decision No. 02/2020 of the Ho Chi Minh City People's Committee regulating the land price list in the area. The adjusted land price list is effective from October 31 to December 31, 2025.
Impact 12 objects
According to the adjusted land price list, the highest price is on Dong Khoi, Le Loi, Nguyen Hue streets (District 1) with 687 million VND/m2, 4 times higher than the land price list according to Decision 02/2020 of 162 million VND/m2; Ham Nghi street is priced at 429 million VND/m2, an increase of about 4 times. In Hoc Mon district, the National Highway 22 Parallel Road (section from Nguyen Anh Thu to Ly Thuong Kiet) is priced at 32 million VND/m2, the price according to Decision 02/2020 is 1.4 million VND/m2; the remaining parallel section has increased 38 times, previously only from 780,000 VND/m2.
Agricultural land will be divided into three areas and three locations. Area 1 includes districts: 1, 3, 4, 5, 6, 10, 11, Binh Thanh, Phu Nhuan. Area 2 includes districts: 7, 8, 12, Tan Binh, Tan Phu, Binh Tan, Go Vap, Thu Duc City. Area 3 includes districts: Binh Chanh, Hoc Mon, Cu Chi, Nha Be, Can Gio.
For annual crop land, including: rice land and other annual crop land; perennial crop land; forestry land, including special-use forest land, protective forest land, production forest land; aquaculture land, concentrated livestock land; salt-making land; other agricultural land, divided into 3 locations. Location 1: adjacent to the roadside (road named in the residential land price list) within 200 m; location 2: not adjacent to the roadside (road named in the residential land price list) within 400 m; location 3: remaining locations.
Mr. Nguyen Toan Thang, Director of the Department of Natural Resources and Environment (TN-MT) of Ho Chi Minh City, said that the adjusted land price list issued under Decision No. 79/2024 includes 6 types of land price lists. Of which, the agricultural land price list has the same collection rate as before. Agricultural land in high-tech agricultural zones also has the same collection rate as before: 1,140 VND/m2/year.
The land price list in 22 districts and Thu Duc City is suitable for the current situation and takes into account the subjects affected by the adjustment of land price list in the area, especially cases of land use purpose change of households and individuals. The price list of commercial and service land; non-agricultural production and business land that is not commercial and service land; commercial and service land in high-tech zones; non-agricultural production and business land that is not commercial and service land in the High-tech Zone remains the same as before.
The land price list according to the provisions of the 2024 Land Law will be the basis for application in 12 cases. Of which, 4 cases continue to apply the land price list similar to the 2013 Land Law; 1 case applies almost the same as the 2013 Land Law (but does not distinguish between within or outside the limit of calculating land use fees when the State recognizes the right to use residential land of a family or individual; changes the land use purpose of a household or individual); 7 cases apply completely new compared to the 2013 Land Law.
Ensuring harmony of interests
The Director of the Department of Natural Resources and Environment of Ho Chi Minh City also emphasized that the benefits of the adjusted land price list mainly focus on the following contents:
Firstly, fees, taxes, land use fees and financial obligations on land of land users, including organizations and individuals, especially households and individuals, are made public, transparent and fair. Secondly, penalties for land violations have changed in an increasing direction, contributing to deterring and reducing violations, contributing to cleaning up and developing the real estate market in a healthy manner. Thirdly, the determination of starting prices for auctioning land use rights in land plots with completed technical infrastructure is carried out more quickly and creates conditions to improve access to land for individuals and organizations in need. Fourthly, for people whose land is recovered, the determination of resettlement prices will be more public, transparent and faster than before, ensuring fairness in land recovery prices and resettlement land sale prices.
Vice Chairman of Ho Chi Minh City People's Committee Bui Xuan Cuong informed about the adjusted land price list. Photo: Quoc Anh
In addition to the above positive impacts, the adjustment of the land price list has an impact on the demand for land use purpose change of some local people. To address this issue, according to the regulations on exemption and reduction of land use fees stipulated in the 2024 Land Law, the Prime Minister has assigned the Ministry of Finance to develop and advise the Government to issue a Decree regulating exemption and reduction of land use fees for cases not yet stipulated in the 2024 Land Law, including cases of land use purpose change of households and individuals.
Mr. Bui Xuan Cuong, Vice Chairman of the Ho Chi Minh City People's Committee, said that the adjusted land price list is an important, sensitive, and complicated content, with a large scope of subjects subject to adjustment; affecting organizations and individuals using land, and the city's socio-economic situation. The land price list according to Decision 02/2020 is no longer consistent with current regulations and the city's reality.
The leader of the Ho Chi Minh City People's Committee emphasized the spirit of the new land price list in the area gradually approaching the market price, creating conditions for socio-economic activities, avoiding congestion in resolving land financial obligation records for organizations and individuals, contributing to the early implementation of projects and works...
"The city issued Decision 79/2024 very carefully, thoroughly, listening and absorbing comprehensively... Minimizing the impact on the legitimate rights of the people, in accordance with the motto of ensuring harmony of interests of the state, land users and investors" - Mr. Bui Xuan Cuong said.
In the process of implementing Decision 79/2024, Mr. Bui Xuan Cuong requested that departments and branches continue to promote propaganda and dissemination of new regulations, especially in affected and impacted cases; information must be very clear, public, transparent, specific, and thorough... If there is any arising content, it is recommended to discuss for application and soon bring the policy into life.
Director of the Department of Natural Resources and Environment of Ho Chi Minh City Nguyen Toan Thang said that in cases where competent state agencies have received land users' dossiers before Decision 79/2024 takes effect, land prices for calculating financial obligations and land taxes will continue to be implemented according to regulations at the time of dossier submission.
Waiting for market reaction
In the latest document, the Ministry of Finance informed that in Ho Chi Minh City, the revised land price list and additional resettlement land prices aim to promote the progress of compensation to clear congestion of public investment projects in Ho Chi Minh City such as the project connecting Ring Road 2, Ring Road 3, Xuyen Tam Canal, Metro No. 2, North Bank of the Double Canal...
The owner of a company with a project said that with the new land price calculation and application, the tax rate that this company has to pay is about 25% higher than the old rate. If we calculate the total costs for the past years, the company's products have been sold at a heavy loss. This does not seem to be a positive point for the company with the stuck project.
Mr. Ta Trung Kien, Deputy Director of Wowhome Real Estate Joint Stock Company, said that having a new land price list that is basically close to the market price will be convenient for businesses when implementing projects. They will calculate the cost from the beginning, and can estimate the costs. The selling price of the product to customers after deducting the cost may be higher than before, due to the application of the new land price list, but investors can balance it by calculating the surplus. For project investors who have handed over apartments to customers, if there is a new land price list, they will understand the cost and quickly make the book for customers. However, if the tax is high, they have to pay a lot of money, while the asset is the apartment that has been handed over to customers, they feel burdened, unreasonable.
According to Mr. Kien, the investor's future projects will certainly include all input costs, including land use tax. All updated prices will be higher than in the past.
In the new project, for the people, Mr. Vo Hong Thang, Deputy General Director of DKRA Group Joint Stock Company, said that the new land price list in the short term will increase a lot, causing a psychological impact that is both positive and negative. People who want to convert from other land to residential land will have to pay high taxes, at least 10 times. Especially in the suburban districts, because agricultural land is mainly concentrated in the suburbs. These are the subjects who are worried because of the impact of separation and conversion to residential land, sometimes the amount to pay is even higher than the price of the agricultural land purchased before.
However, looking at the positive side, the issuance of land prices approaching market prices will help to negotiate compensation levels quickly, shortening the time for site clearance. In particular, financial costs will be greatly reduced. Because a year of project extension means increased costs. When clearance is good, public investment projects will be implemented and completed soon, which will be very beneficial for the country and society.
Ms. Do Thi Thu Giang, Director of Savills Consulting Services in Ho Chi Minh City, said that the long-standing price difference has created a "two-price" system, leading to many consequences. Especially the difficulty in land management, at the same time, the development of real estate projects has also encountered many difficulties, especially in the land acquisition and site clearance stages.
Compensation based on land price lists that are not close to market prices has caused delays, dissatisfaction and financial losses for affected people, leading to protracted land disputes and lawsuits.
However, the prices in the new regulations are significantly higher than the old price list, and are proposed to be applied for a short period of time, which creates great financial pressure for the affected groups. Therefore, careful consideration is needed to balance the interests of all parties, especially prioritizing the protection of people's rights.
Issue full enforcement documents before October 31
On October 22, Prime Minister Pham Minh Chinh signed Official Dispatch No. 109/CD-TTg requesting the Ministry of Natural Resources and Environment and localities to strengthen their focus on directing and implementing the Land Law.
The Prime Minister said that provinces and cities have issued documents detailing the implementation of the Land Law according to their authority; many provinces and cities have basically completed the implementation, except for Hai Phong and the provinces of Lang Son, Khanh Hoa, Dak Lak, Ben Tre, and Soc Trang, which have only issued 2-5 out of the total 20 assigned contents.
The Prime Minister severely criticized the People's Council Chairmen and People's Committee Chairmen of localities for their delays and requested a review and clarification of responsibilities.
According to the Prime Minister, the failure to issue all documents within his authority has limited the effectiveness of law enforcement, affecting the rights of people, businesses, administrative procedures, and the effectiveness of implementing new policies of the Land Law. Therefore, all assigned contents must be issued before October 31, 2024.
V. Duan
Early supply opening
According to the Ho Chi Minh City Real Estate Association, the city currently has more than 158 pending projects, with unresolved issues that have caused projects to stagnate for many years. If divided into many groups, some groups will be resolved in terms of tax payment, including projects that can fulfill financial obligations and issue pink books to many residents.
In addition, according to the Department of Natural Resources and Environment of Ho Chi Minh City, from now until the end of the year, there will be 22 land plots and projects put into valuation with a large total land use fee of up to 25,483 billion VND. This is just the number given by the department and industry; if businesses are satisfied and fulfill their financial obligations to soon open up supply and products for the market, it is very positive. However, the market is waiting for further reaction after practical application.
In particular, recently, Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association (HoREA), said that the Government has submitted to the National Assembly a draft resolution on piloting allowing investors to negotiate on receiving land use rights or having land use rights for land other than residential land to implement commercial housing projects.
This draft, if approved, will create conditions for investors and businesses to access land through agreements on receiving land use rights or having land use rights for land other than residential land to implement commercial housing projects on the basis of voluntary agreements, "willing buyers and sellers" between people and businesses, without disputes or lawsuits, in addition to methods of accessing land through auctioning land use rights or bidding to select investors for projects using land, helping to increase the supply of projects and commercial housing products to contribute to reducing housing prices.
Source: https://nld.com.vn/bang-gia-dat-tai-tp-hcm-phu-hop-thuc-tien-19624102221424965.htm
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