(CLO) HoREA proposed that the State take measures to effectively control the activities of "speculators, land brokers, and dishonest businesses" who may take advantage of the State's issuance of the "Adjusted Land Price List" to "inflate land prices" and disrupt the market for the purpose of illegal profiteering.
Recently, Ho Chi Minh City announced a new land price list that will be applied from October 31, 2024 to December 31, 2025. It is known that the new land price list of Ho Chi Minh City has been adjusted and changed compared to the previous land price list announced by the Department of Natural Resources and Environment of the city at the end of July 2024.
Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association (HoREA), said that the new land price list has adjusted land prices to increase "slightly" compared to before.
For example, in the area of Dong Khoi, Le Loi and Nguyen Hue streets (District 1), which is considered the most expensive "diamond" land in the city, the price has been reduced by about 15.2%. If in the old land price list, the land price here was valued at up to 810 million VND/m2, then in the new land price list, it has been reduced by 123 million VND/m2 and is only 687 million VND/m2.
Sooner or later, dishonest land brokers will take advantage of Ho Chi Minh City's new land price list to "inflate" land prices. (Photo: ST)
According to Mr. Chau, the new land price list of Ho Chi Minh City is completely re-adjusted, from districts to Thu Duc city according to each land location and adjacent land locations of each locality.
Typically, the price of residential land on the parallel road of National Highway 22 (from Nguyen Anh Thu Street to Ly Thuong Kiet Street) in Hoc Mon District is 32.3 million VND/m2, a decrease of 54.5% compared to the previous price of 71 million VND/m2.
“The new land price list has overcome the unreasonable land price situation of the draft adjusted land price list announced on July 29, 2024. Particularly in some areas in District 1, District 4 and District 5, the new land price list has also been adjusted according to each land location of the roads in each district to be more reasonable,” said Mr. Chau.
However, the Chairman of HoREA said that although the new land price list has been adjusted to be more reasonable, it will still directly impact individuals and households who are applying for land use rights certificates, house ownership rights, and other assets attached to land (red books), they will pay higher land use fees than before (before the new land price list was applied from October 31).
Some other cases also have to pay higher land use fees, such as applying for legalization of the right to use agricultural land, non-agricultural land attached to housing on the same plot of land at the same time as changing the land use purpose to residential land, or applying for separation of agricultural land, non-agricultural land at the same time as changing the land use purpose to residential land.
According to Mr. Chau, the land price list may not immediately impact the real estate market because current real estate and commercial housing projects are mainly priced using the surplus method, but it will impact the real estate market in "phase 2".
This is the time when real estate enterprises receive land use rights transfers to carry out real estate, urban, commercial housing, and social housing projects, and people want to sell at higher prices than before, leading to "pushing" pressure to increase housing prices.
Therefore, the Association recommends that the State take measures to effectively control the activities of "speculators, land brokers, and dishonest businesses" who may take advantage of the State's issuance of the "Adjusted Land Price List" to "inflate land prices" and disrupt the market for the purpose of illegal profiteering.
“HoREA recommends that the People’s Committees of provinces and centrally-run cities step up propaganda and legal explanation so that people, investors and businesses can clearly understand and raise awareness of the rule of law, law observance and compliance, along with effective management and regulation measures for the real estate market,” said Mr. Chau.
Source: https://www.congluan.vn/du-som-hay-muon-co-dat-bat-luong-se-loi-dung-bang-gia-dat-moi-cua-tp-hcm-de-thoi-gia-dat-post318030.html
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