Forecasting real estate price trends, Ho Chi Minh City is about to issue an adjusted land price list, what are the benefits of not having a red book?

Information about housing and the market in the third quarter of 2024 is coming soon, real estate prices will continue to increase, Ho Chi Minh City sets the time to issue the adjusted land price list... are the latest real estate news.

The Vietnamese real estate market has just gone through a period of fluctuations and is showing signs of recovery and price increases. (Photo: Linh An)

Housing and market information coming soon Q3/2024

Recently, the Ministry of Construction sent an official dispatch to the People's Committees of provinces and centrally-run cities regarding the implementation of information disclosure for the third quarter of 2024 on housing and the real estate market.

Carrying out the task of disclosing information on housing and the real estate market according to the provisions of Decree No. 94/2024/ND-CP of the Government detailing a number of articles of the Law on Real Estate Business on the establishment and management of information systems and databases on housing and the real estate market, effective from August 1, 2024, the Ministry of Construction requests the People's Committees of provinces and centrally run cities to update the status of promulgation of housing development programs and plans; the number of projects approved for investment policy, selection of investors;

Number of housing development projects, real estate projects licensed, in progress, completed; number of projects, apartments eligible for sale of future housing (commercial housing, social housing);

Transaction volume and total transaction value of apartments, individual houses, transferred land; housing prices and some other types of real estate (apartments, individual houses, land, social housing); office rental prices; commercial premises; hotels, resorts; industrial real estate; real estate inventory.

Report on the implementation of social housing development investment and the implementation of the 120 trillion VND credit package for social housing loans in the area; report on difficulties and problems of enterprises operating in the real estate sector in the area, and propose solutions (if any).

The market sets a new price level

Mr. Nguyen Quoc Anh, Deputy General Director of Batdongsan.com.vn, said that the Vietnamese real estate market has just gone through a period of fluctuations and is showing signs of recovery and price increases. The new legal corridor is creating a foundation for the recovery of the real estate market.

According to Mr. Quoc Anh, the new legal corridor with the entry into force of three laws, the Housing Law 2023, the Real Estate Business Law 2023 and the Land Law 2024, will increase the prices of many types of real estate. Specifically, land costs and many new regulations create upward pressure on prices in both the primary and secondary markets.

The reason for the increase in land prices is due to the increased frequency of land price updates when the land price framework was removed and the land price table was updated annually, instead of every 5 years as before. The increase in land prices is also due to the increased accuracy when the deduction method was removed and comes from the regulations on the conditions for applying the 4 land valuation methods.

In addition, stricter legal certification when adding conditions for granting land use right certificates for land in use without disputes will also increase land prices when requirements for land with clear legal status are increasingly emphasized and focused on.

Not only land prices increase, but primary real estate prices also increase due to the cost of site clearance increasing with land prices. In addition, regulations on resettlement procedures will push up primary real estate prices when investors must arrange resettlement housing in the project, implemented before reclamation and clearance.

The conditions for resettlement housing are also clear and strict, as they must be equal to or better than the people's previous housing. The resettlement area must have complete infrastructure. Mr. Quoc Anh said that secondary real estate prices will also increase due to the increase in primary prices.

Specifically, for each type, private houses increase according to land prices, the market expands. Land prices also increase when the supply of subdivided plots is tightened, requiring close price. Urban housing projects will be more popular than land projects and with investment in infrastructure and utilities, urban housing projects also establish new prices.

Hanoi officially increases minimum land subdivision area

Hanoi People's Committee has just issued Decision No. 61 regulating important contents related to land management and use in the city.

One of the notable points of this decision is the conditions and minimum area for land division and consolidation.

Regarding the separation of residential land plots, in wards and towns, the area outside traffic routes, technical infrastructure works, public spaces, the land plot after separation must not be less than 50m2, the length must be over 4m and the width adjacent to traffic routes must be 4m or more.

For communes in the plains, the minimum area after subdivision is 80m2, for communes in the midlands it is 100m2, and for communes in the mountainous areas it is at least 150m2.

For non-agricultural land, the regulation applies to plots of land that are not allocated or leased by the State for project implementation. In wards and towns, commercial service land must have a width adjacent to traffic roads of 10m or more, with a minimum area of ​​400m2. For other types of non-agricultural land, the plot of land must be over 20m wide, with a minimum area of ​​1,000m2.

In communes, commercial service land must have an area of ​​not less than 800m2 and other non-agricultural land must have an area of ​​not less than 2,000m2.

For agricultural land, the minimum area for annual crop land is 300m2 in wards and towns and 500m2 in communes; land for perennial crops and aquaculture land are 500m2 in wards and towns and 1,000m2 in communes, respectively. Production forest land is divided into plots if the area is not less than 5,000m2.

Currently, land division in Hanoi is applied according to Decision No. 20 of 2017. Accordingly, the land plot after division must have a minimum area of ​​30m2 for wards and towns and not less than 50% of the new land allocation limit (minimum) for the remaining areas.

Ho Chi Minh City will issue adjusted land price list before October 15

Regarding the procedure for adjusting the land price list in 2020, the People's Committee of Ho Chi Minh City (HCMC) has just reported to the City People's Council the progress and implementation content.

According to the City People's Committee, the 2024 Land Law has a number of new points such as perfecting the mechanism for determining land prices according to market principles and removing regulations on land price frames.

In addition, a land price list according to the new law will be developed and applied from January 1 every year to suit the market and serve as the basis for determining 12 financial obligations for 2 land use groups.

Meanwhile, the 2020 price list currently applied in Ho Chi Minh City has 3 shortcomings: The price list is controlled by the price frame, so the maximum residential land price is only 162 million VND/m2, much different from the market price; resettlement land prices have not been updated; there is a bottleneck in pricing land plots with a value of less than 30 billion VND according to the price list.

Faced with the need to adjust land prices, the Ho Chi Minh City People's Committee has assigned the Department of Natural Resources and Environment (TN-MT) to draft a draft following simplified procedures to be issued on August 1.

After collecting written opinions and through review conferences, on July 30, the Department of Natural Resources and Environment submitted the decision to adjust the 2020 price list to the Ho Chi Minh City Land Price List Appraisal Council. Next, the Department submitted additional impacts of the adjusted price list.

At the meeting on September 20, the Council's Working Group made some comments on the draft adjusted land price list and the Department of Natural Resources and Environment accepted them and included them in the draft.

Regarding the progress of the adjusted land price list in the coming time, on September 30, the Department of Natural Resources and Environment will complete the submission to the Council. It is expected that before October 10, the Council will meet to review. According to the plan, the adjusted land price list will be issued by the Ho Chi Minh City People's Committee before October 15.

During the time when the adjusted price list is not available, on September 21, the Ho Chi Minh City People's Committee approved departments, branches, Thu Duc City People's Committee and districts to apply the current land price list and land price adjustment coefficient to determine financial obligations and taxes.

What are the rights of land users without red books?

When the land plot is granted a red book, people have full rights of land users such as transfer, donation, and compensation. However, not everyone knows what rights land users without a red book have. Please refer to the article below to understand these rights.

1. Compensation for land

a, Cases where the conditions for granting a Certificate are met but have not been granted

Point a, Clause 1 and Clause 2, Article 95 of Land Law No. 31/2024/QH15 stipulate that households and individuals using land other than leased land with annual land rent payment shall be compensated for land when the State recovers land for national defense and security purposes; socio-economic development for national and public interests if they meet one of the following conditions:

- Have Certificate.

- There is a decision on land allocation or land lease or decision on permission to change land use purpose from a competent authority.

- Have one of the documents on land use rights to issue a Certificate.

- Received transfer of land use rights in accordance with legal regulations but has not completed land registration procedures.

- Use land under mortgage contract to settle debt; document recognizing auction results that have fulfilled financial obligations.

Thus, even if a Certificate has not been granted but the conditions for granting it are met and one of the above documents is available, households and individuals will still be compensated for land if it is not leased land with annual land rent payment.

b. Not eligible for Certificate

According to Clause 3, Article 98 of the 2024 Land Law, even if they do not meet the conditions for granting a Certificate, households and individuals directly engaged in agricultural production will still be compensated for land, provided that the agricultural land was used before July 1, 2004.

2. Compensation for property attached to land

Clause 3, Article 91 of the 2024 Land Law stipulates the principles of compensation for property damage when the State acquires land as follows:

“Property owners who suffer property damage as prescribed by civil law shall be compensated for the damage; owners of production and business establishments that must stop production and business due to land acquisition by the State shall be considered for support.”

Thus, even without a Certificate, the legal owner of the property attached to the land is still compensated if there is damage caused by land acquisition.

3. Exercising land user rights

According to Point a, Clause 1, Article 45 of the 2024 Land Law, there are 2 cases where land use rights can be transferred or donated even without a Certificate:

Case 1: When inheriting land use rights, converting agricultural land when consolidating land, exchanging plots, or donating land use rights to the State or community.

Case 2 (Point a, Clause 4, Article 127 of the 2024 Land Law): Households and individuals who have not been granted a Certificate but are eligible for a Certificate are allowed to transfer land use rights, lease, sublease land use rights, and contribute capital using land use rights to implement projects.

4. Granted construction permit

Even if there is no Certificate, but there is one of the legal documents on land as prescribed in Article 3 of Decree 53/2017/ND-CP, a construction permit will still be granted.

Note: Houses can only be built on residential land.

5. Temporarily used until land is recovered

Clause 8, Article 138 of the 2024 Land Law stipulates:

“Households and individuals who are using land in the cases specified in Clauses 1, 2, 3, 4, 5 and 6 of this Article but do not meet the conditions for being granted a Certificate of land use rights and ownership of assets attached to land shall be temporarily allowed to use the land in its current state until the State recovers the land and must declare and register the land according to regulations.”

Source: https://baoquocte.vn/bat-dong-san-moi-nhat-du-bao-xu-huong-gia-nha-dat-tphcm-sap-ban-hanh-bang-gia-dat-dieu-chinh-khong-co-so-do-co-quyen-loi-gi-288312.html