"It's too hard for me"
Reading the news about Ho Chi Minh City's plan to apply a new land price list from August 1, Mr. Nguyen Thanh Vinh (residing in Go Vap district, Ho Chi Minh City) was surprised when the land price would be adjusted to increase 5-50 times compared to the current land price list, depending on the area.
In 2023, Mr. Vinh bought a piece of agricultural land and completed the procedures to change the land use purpose to residential land. Due to his financial capacity, he had to owe 300 million VND in land use fees, planning to save up to pay it off gradually in August this year.
However, he was shocked to learn that if the new land price was applied, the debt could reach billions of dong. With the old debt not yet paid, Mr. Vinh feared that he would not be able to pay it when the debt increased so much.
In the land price adjustment table from August 1, Ho Chi Minh City plans to increase land prices 5-50 times, close to market prices (Photo: Nam Anh).
"Based on the new land price list, it seems like I'm buying my land for the second time. My children are about to start a new school year, I have to manage all kinds of money. That's too difficult for me," said Mr. Vinh.
He said that he always supports the State's policies for the common benefit of society. However, the time to apply the new land price list from August 1 is too urgent. He hopes that there will be an adjustment in time so that people can understand the true nature and have time to handle everything.
Like Mr. Vinh, Ms. Nguyen Phuong (residing in Tan Phu district) also complained: "I read the newspaper and could not believe my eyes. I do not know if there is any mistake or not, but the city has implemented the policy of increasing land prices so quickly. I still have nearly 200 square meters of agricultural land that has not been converted to residential land. I hope the city will keep the current land price until the end of 2025 so that my family can manage."
According to Ms. Phuong, the reason she has not changed the purpose of 200m2 of land to residential land even though she bought it 5 years ago is because of economic difficulties. When she bought the land, she also had to borrow nearly 2 billion VND and has not yet paid off the debt.
Some people said that the adjustment time was too short, making it difficult for them to cope and understand the true nature of the change (Illustration: Nam Anh).
"My family's business has been really difficult after the Covid-19 pandemic, so if the land price increases again, my family doesn't know when we will have enough money to move to residential land. I always comply with all policies of the State, but I hope that the city will consider the wishes of the people and postpone the land price increase from August 1," Ms. Phuong hoped.
Mr. Nguyen Duy Thanh, a real estate expert, said that adjusting the land price list will have a big impact on investors because tax obligations and real estate transaction costs through banks will be higher.
"For land and apartment projects that have been left with legal issues and have not been able to issue certificates to residents, investors will not be able to foresee this in their business plans because they will soon have to pay very high taxes. This will affect the profit margin of a project they have implemented 5 or 10 years ago," said Mr. Thanh.
In addition, he is also concerned that in the near future, due to the transparency of real estate transactions, new tax rates, investment demand and profit growth standards, land prices will increase.
"People may be shocked because they do not foresee their personal obligations. Those who really need housing will have to bear a large additional cost of land tax. It is predicted that in the future, factors of social demand and increased land tax will create a higher apartment price level than the present," Mr. Thanh shared.
On the morning of July 31, the Ho Chi Minh City Real Estate Association (HoREA) said that the Association has sent a document requesting the Ho Chi Minh City People's Committee to consider not issuing a land price list applicable from August 1. Instead, it should focus on developing the first land price list applicable from January 1, 2026 according to the provisions of the 2024 Land Law.
According to the leader, HoREA's draft land price list will have a huge impact on many individuals and households when proposing to issue certificates of land use rights, house ownership rights, and assets attached to land (pink books) because they have to pay land use fees according to the land price list higher than before.
Next, the price of the draft land price list will have an impact on input costs of many sectors of the economy, first of all, the cost of compensation for site clearance will be pushed higher.
Need to understand the new land price list correctly
According to Mr. Thanh, although there are still some impacts, adjusting land prices will contribute to "filling" the shortcomings in the real estate sector, perfecting the legal framework and creating a more transparent, fair and specific market.
People will be able to transact at prices close to market reality. In addition, those affected by land clearance decisions for economic and social development will be compensated at prices close to market.
In addition, the adjustment will contribute to speeding up the local land clearance progress, reducing prolonged complaints, ensuring security and positively impacting the socio-economy and traffic infrastructure.
According to economic experts, adjusting the new land price list to be closer to the market is reasonable (Illustration: Nam Anh).
"Previously, the State's land tax bracket was very low, causing a great loss to the society's budget revenue. Meanwhile, real estate investors benefited from that loss. The adjustment will help the State increase its budget, invest in infrastructure, take care of social housing policies, etc.," said Mr. Thanh.
According to many economic experts, adjusting state land prices closer to market prices is reasonable and has been proposed by many experts for a long time. However, this needs a roadmap to avoid people feeling "ambushed".
Economist Dinh The Hien said that there are many cases where people who change the land use purpose from agricultural to residential land have to pay billions of dong in taxes according to the new land price. Looking at it from a micro perspective, the economist also expressed regret for these cases.
"People need to understand the new land price list correctly. The previous land prices were too outdated and far from market value, so this adjustment was needed. In fact, the adjusted land price is only 70% of the market value. This adjustment also helps to eliminate the problem of two prices that have existed before," said Mr. Hien.
However, from a macro perspective, when people convert to have a red book of residential land, making the land more valuable, paying taxes according to market value is necessary.
"The important thing is that the State's adjusted price must be consistent with the market price, so that people and real estate investors do not have to pay higher prices. People also do not need to worry about the lack of residential land because in addition to projects with sky-high prices, there are still many apartments, townhouses, etc. on the market and the prices are also stable," said Mr. Hien.
Assess the impact on people's lives before issuing land price list
Article 23 of Decree 71/2024/ND-CP stipulates that the development of a draft land price list and a draft explanatory report on the development of a land price list by area and location must assess the suitability or unsuitability of land prices compared to the results of investigation, survey, and collection of land price information. Assess the impact of the draft land price list on the socio-economic situation, investment environment, implementation of financial policies on land and income, life of households, individuals, and organizations using land.
Speaking at a press conference to inform about the adjustment of land price list according to Clause 1, Article 257 of the 2024 Land Law, Mr. Nguyen Toan Thang, Director of the Department of Natural Resources and Environment of Ho Chi Minh City, said that the urgent construction of a new land price list in just 9 days without waiting until January 1, 2026 because from August 1, the K coefficient will no longer exist, so the land price list must be adjusted. If the new land price list is not applied, public projects will be stalled from August 1 because there is no resettlement price list.
"This land price list will be applied until December 31, 2025. From January 1, 2026, adjustments will be made according to regulations permitted by law. Maybe by the end of 2024, we will summarize and re-evaluate the impact of the land price list," informed the Director of the Department of Natural Resources and Environment of Ho Chi Minh City.
Source: https://dantri.com.vn/bat-dong-san/dan-choang-vang-khi-nghe-tin-tphcm-du-kien-tang-gia-dat-5-50-lan-tu-18-20240731124901361.htm
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