Ho Chi Minh City land price list has the highest price; How much compensation will be given for houses without certificates in Nguyen Tuan (Hanoi)?

Ho Chi Minh City land price list has the highest price; How much compensation will be given for "unregistered" houses in Nguyen Tuan (Hanoi)?

New land price list may increase 10 times the current price; Ho Chi Minh City plans to collect more than 25,000 billion VND in land use fees; Quoc Oai land auction lasted nearly 20 hours, the highest price was 54 million VND/m2.

Below is a summary of the week's outstanding real estate news.

Ministry of Construction reaffirms stance on taxing cases of multiple property ownership

At the regular press conference of the third quarter of 2024 of the Ministry of Construction, Mr. Vuong Duy Dung, Deputy Director of the Department of Housing and Real Estate Market Management, pointed out 3 reasons for the high increase in real estate prices.

The first factor stems from the increasing input costs for developing new projects, especially land use fees. The second reason stems from the fact that supply, although improved, is still limited. This is the reason that many brokers and speculators take advantage of to inflate prices, causing market disruption.

Mr. Vuong Duy Dung, Deputy Director of the Department of Housing and Real Estate Market Management, speaking at the press conference. Photo: Ministry of Construction

The third factor causing the price of houses/land to increase "skyrocketingly" is that other investment channels have not really flourished. This has caused many people to put money into real estate as a channel for accumulation and profitable investment, thereby causing the market price level to continue to be pushed up.

To control real estate prices, Mr. Vuong Duy Dung said the Ministry of Construction has reported to the Government a number of solutions to effectively implement the three new laws related to the real estate market and guiding documents to remove difficulties for the market.

In addition, the representative of the Ministry of Construction also reaffirmed its stance on researching and implementing tax policies for people who own and use multiple houses/lands, in order to limit speculative and "surfing" activities.

In addition, Mr. Dung also stated that this tax policy will not increase real estate prices. This is a popular solution, which many countries in the world have been applying to limit speculation. However, until the regulation is issued, the agencies will have to carefully, thoroughly and comprehensively evaluate the impact of the policy on the market.

New land price list could increase 10 times current price

At the Conference on "Propaganda, dissemination and effective implementation of policies and laws on land, housing and real estate business", 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 list.

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 said that the new land price list could increase 2-7 times, even 10 times the current price range.

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 - Baodautu.vn on the sidelines of the conference, 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.

Ho Chi Minh City land price list finalizes highest land price at 687.2 million VND/m2

On October 16, Mr. Phan Van Mai, Chairman of the Ho Chi Minh City People's Committee and Chairman of the City Land Price Appraisal Council, signed and approved the appraisal report on the draft Decision replacing Decision 02/2020 on land price list in the city. The application period of the adjusted land price list starts from the date of signing and promulgation until December 31, 2025.

The highest land price in Ho Chi Minh City is 687.2 million VND/m2. Photo: Le Toan

According to the report of the Department of Natural Resources and Environment, the highest urban land price in the city is 687.2 million VND/m2 on central streets such as Dong Khoi, Le Loi... (District 1). Compared to the previous draft land price list (810 million VND/m2), the finalized land price has decreased by 122.8 million VND/m2, but also increased 4.2 times compared to the current price list.

In Hoc Mon, Nha Be, Binh Chanh, Can Gio and Cu Chi districts, land prices are expected to increase sharply, but compared to the previous draft of the adjusted land price list, they have decreased sharply. For example, land prices on National Highway 22 Parallel Road (section Nguyen Anh Thu to Ly Thuong Kiet) - which increased 51 times in the old draft, have now been adjusted to increase only 23 times.

For land prices for non-agricultural production and business that are not commercial or service land, including: land in industrial parks, export processing zones, Quang Trung software park, industrial clusters, minerals; land used for national defense and security purposes; land used for public purposes... there will be prices for each district.

Specifically, in districts 1, 3, 4, 5, 6, 10, 11, Binh Thanh, Phu Nhuan, the price is calculated at 50% compared to the price of land for production and non-agricultural business that is not commercial or service land. In districts 7, 8, 12, Tan Binh, Tan Phu, Binh Tan, Go Vap, Thu Duc City, the price is calculated at 60% compared to the price of land for production and non-agricultural business that is not commercial or service land.

In Binh Chanh district, Hoc Mon district, Cu Chi district, Nha Be district, Can Gio district, the price is calculated at 75% compared to the price of land for non-agricultural production and business that is not commercial or service land.

Ho Chi Minh City plans to collect more than 25,000 billion VND in land use fees.

The Department of Natural Resources and Environment of Ho Chi Minh City has just sent a document to the Department of Finance (Standing Committee of the Specific Land Valuation Council of Ho Chi Minh City) regarding projects expected to be submitted to the Specific Land Valuation Council in the fourth quarter of 2024.

According to the Ho Chi Minh City Department of Natural Resources and Environment, this is to ensure the 2024 budget revenue for Ho Chi Minh City from the land areas expected to collect land use fees. The expected amount of revenue from 22 projects is VND 25,483 billion.

Of which, the project expected to have the largest revenue is Eco Smart City of Lotte Group with 16,000 billion VND, estimated according to the valuation certificate. Next is the 14.8 ha land in An Phu ward (Thu Duc city) of Nguyen Phuong Real Estate Joint Stock Company, expected to need to collect 3,500 billion VND.

There is also TNT Trung Thuy Real Estate Company Limited with the land plot at 230 Nguyen Trai (District 1), expected to collect more than 3,286 billion VND. Nam Bay Bay Investment Company with the Diamond Riverside high-rise apartment project (District 8), expected to collect more than 729 billion VND...

In the first 9 months of this year, the total budget revenue in Ho Chi Minh City is estimated at 371,307 billion VND, reaching 76.9% of the estimate and increasing by 14.3% over the same period. However, the land use revenue of Ho Chi Minh City in the past 9 months was only about 5,900 billion VND.

How much compensation will be given to the "unregistered" houses on Nguyen Tuan Street, Thanh Xuan District?

According to Mr. Dinh Van Hai, Director of the Thanh Xuan District Construction Investment Project Management Board, by the end of October 14, all households and individuals had agreed to hand over the site before the forced implementation of the project to expand Nguyen Tuan Street according to the planning.

Previously, the implementation of site clearance for the project encountered many difficulties, as the compensation price did not meet the needs of the people, especially in the case of households using land originating from vacant land, agricultural land, traffic land, etc.

It is expected that the project to renovate and expand Nguyen Tuan Street will start construction at the end of this year. Photo: Thanh Vu

“According to State regulations, these cases will not be compensated for land. However, to reduce difficulties for the people, the People's Committee has proposed to the city for such land use cases,” said Mr. Bui Duc Hung, Deputy Director of the Thanh Xuan District Construction Investment Project Management Board.

Accordingly, in the case of people using converted land before 1993, the compensation level will be equal to about 30% of the urban land price calculated in the land price frame. As for the case of land use from 1993 - 2004, the support level will be 20%.

According to the current land price framework, houses on Nguyen Tuan Street are classified as location 1 and are currently priced at 32.2 million VND/m2. Thus, the compensation levels will be 9.4 million VND/m2 and 6.4 million VND/m2 respectively. Talking to reporters of Dau Tu Newspaper, households in the area also confirmed the above figures.

In addition to receiving compensation, households whose land was cleared were also supported by local authorities to buy resettlement apartments at a price of about 1.4 billion VND.

The project to renovate and expand Nguyen Tuan Street according to the planning was approved by Thanh Xuan District People's Committee in 2018, with a total investment of nearly 400 billion VND, most of which is for site clearance costs.

The entire expanded route is 720m long, starting at the intersection with Nguyen Trai Street and ending at Lane 162 Nguyen Tuan. After the expansion, this route has a cross-section of 21m, a 15m wide roadway and 3m wide sidewalks on both sides, better serving the travel needs of the people.

The Quoc Oai land auction lasted nearly 20 hours, the highest price was 54 million VND/m2.

At 1:30 a.m. on October 14, the auction of 54 plots of land in Son Trung village, Yen Son commune, Quoc Oai district had just concluded. Accordingly, the lot with the highest winning price was up to 54.48 million VND/m2, 4.5 times higher than the starting price. On the other hand, the plot with the lowest price also reached 44.48 million VND/m2, 3.6 times higher than the starting price.

Auction participants. Photo: Quoc Oai District People's Committee

Previously, the Land Fund Development Center of Quoc Oai district issued an auction notice for 54 plots of land in Son Trung village. The plots here have an area of ​​about 92.5 - 121.4 m2, with starting prices of 12.48 million VND/m2. The deposit for each plot ranges from 230 - 281 million VND/plot.

The auction is conducted by direct voting through multiple rounds, with a minimum of 5 rounds. The minimum bid for each vote is 2 million VND. However, the recent auction had 12 rounds. This is the reason why the event lasted nearly 20 hours and participants had to bid all night.

Nearly 300 customers participated in the recent auction, registering more than 1,000 auction documents. The total amount of money that Quoc Oai district collected from this auction was nearly 242.6 billion VND, 63 billion VND more than expected.

For auctioned land plots, the time to pay 100% of the winning amount will be after 45 days from the date the tax authority issues the payment notice.

According to the Land Fund Development Center of Quoc Oai district, the auction took place in a public, objective, transparent, serious manner, following the correct procedures and regulations of the law, ensuring the rights of the participating parties.

More than 45,000 plots of land in violation in Bac Ninh

The monitoring delegation of the People's Council of Bac Ninh province worked with the Provincial People's Committee on handling cases of land allocation without proper authority; land encroachment and occupation; and arbitrary change of land use purpose.

According to the review results, the whole Bac Ninh province has more than 45,000 residential land plots allocated without proper authority; encroachment; unauthorized conversion of land use purpose with an area of ​​over 976 hectares. The Provincial People's Committee has directed districts, towns and cities to classify and organize the review of the above cases. To date, communes, wards and towns have reviewed more than 10,000 records with an area of ​​252 hectares.

Handling of cases of unauthorized land allocation; encroachment and occupation of land; and arbitrary change of land use purpose in Bac Ninh province still faces some limitations and difficulties such as land management in some places is not strict, encroachment and land disputes have not been thoroughly resolved.

At the meeting, the Chairman of the People's Committee of Bac Ninh province assigned the Department of Natural Resources and Environment to review and collect data to report to the Provincial People's Committee before October 20 to send to the monitoring delegation; advise the Provincial People's Committee to establish 2 working groups to resolve and handle cases of land allocation without authority; land encroachment; and arbitrary change of land use purpose.

Real estate transactions in Binh Dinh are mainly land plots.

The Department of Construction of Binh Dinh province has just released a report announcing information on housing and the real estate market in the province in the third quarter of 2024. Accordingly, the transaction volume in the quarter was mainly land with 1,997 lots. Next were individual houses with 1,053 units and apartments with 174 units. The total transaction value was more than 51 billion VND.

Regarding commercial housing projects, Binh Dinh Department of Construction said that in the quarter, there were 2 licensed projects with 2,079 individual houses; 9 projects under construction with 8,333 apartments; 1 future project eligible for sale (no number of apartments mentioned); 1 completed project with 262 apartments.

In addition, in the third quarter of 2024, Binh Dinh has 7 social housing projects under construction, including 6 social housing projects for low-income people in urban areas with a total of 2,828 apartments; 1 social housing project for workers in industrial parks and export processing zones with 378 apartments.

During the quarter, regarding the project allowing the transfer of land with invested infrastructure to build houses (land plots), Binh Dinh had 1 newly licensed project and is implementing with a quantity of 64 plots.

Notably, Binh Dinh currently has no resort tourism projects that have been granted investment policies or licenses, are being implemented or completed in the third quarter of 2024.

Source: https://baodautu.vn/batdongsan/bang-gia-dat-tphcm-chot-gia-cao-nhat-nha-khong-so-tai-nguyen-tuan-ha-noi-duoc-den-bu-bao-nhieu-d227781.html