Apartment buildings are still the "hot spot" of the market, nearly 4,000 old apartments in Ho Chi Minh City are about to be repaired, new calculation of personal income tax when transferring land use rights... are the latest real estate news.
 |
| In the Northern market, apartments are the segment that will receive positive attention in 2024. (Photo: Linh An) |
Apartment - hot spot of the market
Recently, Batdongsan.com.vn organized the event "Overview of Vietnam Real Estate Market 2024 and Da Nang Focus".
At the conference, Mr. Nguyen Quoc Anh, Deputy General Director of Batdongsan.com.vn said that apartments are a type of property with a fairly stable level of interest and price growth in the market.
Specifically, the average selling price of apartments in 2021 ranges from 34-37 million VND/m2. In 2022, the average selling price of apartments ranges from 38-40 million VND/m2. In 2023, the average selling price of apartments ranges from 39-42 million VND/m2. In 2024, the average selling price of apartments ranges from 45-51 million VND/m2.
In contrast to the continuous upward trend of selling prices, the rental price of apartments has almost not changed significantly in recent years. In 2021, the average rental price of apartments was 10 million VND/month. By 2023 and 2024, the average rental price of apartments increased to 12 million VND/month.
In particular, in the Northern market, apartments are the segment that will receive positive attention in 2024. The markets leading in terms of interest in apartments include Hanoi and Hung Yen with a growth rate of 7% compared to the second quarter of 2024, followed by Hai Phong with a growth rate of 6%.
In Hanoi, the apartment projects receiving the greatest interest from users in the third quarter of 2024 are Hanoi Melody Residence with an increase of 88%, Heritage West Lake increased by 87%, Sunshine Green Iconic increased by 76%, Sunshine Golden River increased by 74%, The Sapphire - Vinhomes Smart City increased by 58%.
In Ho Chi Minh City, the apartment projects receiving the greatest interest from users in the third quarter of 2024 are Lavida Plus with an increase of 258% in interest, Celesta Rise with an increase of 198% in interest, Van Phuc City urban area with an increase of 57%, The Opera Residence with an increase of 55%, Thu Thiem Green House with an increase of 55%, The Beverly Solari - Vinhomes Grand Park with an increase of 46%.
Compared to the same period last year, the apartment projects with the best price increases in the Hanoi market include Times City with an increase of 39%, Goldmark City with an increase of 38%, Vinhomes Ocean Park Gia Lam with an increase of 38%, Vinhomes D'Capital with an increase of 27%, Vinhomes Smart City with an increase of 26%. In Ho Chi Minh City, the apartment projects with the best price increases in the market are Lavida Plus with an increase of 24%, The Era Town with an increase of 19%, Masteri Thao Dien with an increase of 18%, The Opera Residence with an increase of 13%, Empire City Thu Thiem with an increase of 13%.
According to Mr. Quoc Anh, high-end and luxury apartments are gradually taking up a larger proportion of the apartment supply in major cities, specifically in the three key markets of the country: Hanoi, Ho Chi Minh City and Da Nang. Notably, luxury apartments in Da Nang show good growth in both selling price and interest level, while the market in the other two major cities, Hanoi and Ho Chi Minh City, tends to be flat.
According to data from Batdongsan.com.vn, the price of luxury apartments in Hanoi has decreased from VND 136 million/m2 in the second quarter of 2024 to VND 132 million/m2 in the third quarter of 2024. During the same time period, the selling price of luxury apartments in Ho Chi Minh City increased from VND 113 million/m2 to VND 121 million/m2.
The price of luxury apartments in Da Nang increased from 106 million VND/m2 to 111 million VND/m2. Da Nang is also the market with the highest level of interest in luxury apartments, from 240 points to 260 points.
Meanwhile, Ho Chi Minh City and Hanoi recorded a decrease in interest levels. Specifically, the interest level for luxury apartments in Hanoi decreased from 109 points to 107 points, and luxury apartments in Ho Chi Minh City decreased from 50 points to 45 points.
Mr. Quoc Anh said that Hanoians are looking for luxury apartments more and are paying great attention to the areas of Hung Yen, Da Nang and Hai Phong. In the proportion of interest in the luxury apartment segment by area of Hanoians, Hung Yen is at the top with 44%, Da Nang is at the second place with 15%. Hai Phong is at the third place with a search proportion of 9%. These are also the 3 areas with the highest number of searches for luxury apartments on the market.
According to the Deputy General Director of Batdongsan.com.vn, the highlight of the luxury apartment segment is the "branded" real estate product. "Branded Residence" is a high-end real estate project developed in cooperation with famous brands. These projects provide luxury services and amenities, with classy designs. The main reasons when consumers decide to buy branded real estate include: services and amenities (34%), profit potential (25%), building maintenance and management (23%), brand recognition (10%).
Nearly 4,000 old apartments in Ho Chi Minh City are about to be repaired.
The Ho Chi Minh City People's Committee has just issued a document assigning agencies to resolve difficulties and problems in the repair of apartments and common property in apartment buildings managed by the Center for Housing Management and Construction Inspection, Department of Construction.
Previously, at the end of July, the Ho Chi Minh City People's Committee allocated 3,944 state-owned apartments to the People's Committees of districts and Thu Duc City so that these localities could approve management and use plans for resettlement purposes.
The Ho Chi Minh City People's Committee requires districts and Thu Duc City to report in detail the actual number of apartments that need to be repaired and the progress and resettlement plan. Based on the above plan, the Center for Housing Management and Construction Inspection will repair the apartments and common areas in the apartment buildings.
Nearly 4,000 apartments distributed to localities are divided into 3 groups.
Specifically, group 1 includes all apartments in public property apartment buildings that are still vacant and have not been arranged for use. Group 2 includes vacant apartments that have not been arranged for use, located between apartments that have been arranged for use but have not yet established an apartment management board.
For apartments in the above two groups, the Center for Housing Management and Construction Inspection will preside over the repair, ensuring progress according to the proposals of the localities.
Group 3 includes vacant apartments, located between other apartments that have been arranged for use and have established an apartment management board.
For this group, the Center for Housing Management and Construction Inspection is assigned to repair the apartments, coordinate with the management board, and report to the Department of Construction the plan to repair the common property of the apartment building.
New way of calculating personal income tax when transferring land use rights
According to previous regulations, taxable income from land use rights transfer was determined as the transfer price each time. However, with the new regulations in the 2024 Land Law, the calculation method has changed.
This is a notable content of the 2024 Land Law when amending regulations on income subject to personal income tax (hereinafter referred to as PIT) from real estate transfer activities.
Previously, taxable income from real estate transfer was regulated in Clause 1, Article 14 of the 2007 Law on Personal Income Tax (amended and supplemented by Law No. 71/2014/QH13), which stipulates that taxable income from real estate transfer is determined as the transfer price each time.
However, the above regulation has been amended and supplemented by Article 247 of the 2024 Land Law, effective from August 1.
Accordingly, taxable income from real estate transfer is determined as the transfer price each time; in case of transferring land use rights, taxable income is calculated according to the land price in the land price list.
Thus, the 2024 Land Law has added regulations on determining taxable income in the case of transferring land use rights. Specifically, from August 1, taxable income from land use rights transfer is determined according to the land price in the land price table.
Meanwhile, taxable income from other real estate transfers (not land use rights) is still determined based on the transfer price each time.
According to the 2024 Land Law, from 2026, land price lists will be issued by provincial People's Committees once a year to keep up with the market, instead of every 5 years as per the old regulations.
Currently, in many localities, the land price list issued by the Provincial People's Committee according to the provisions of the 2013 Land Law continues to be applied until December 31, 2025.
In Ho Chi Minh City, at the end of October, after nearly 3 months of receiving comments, explanations and appropriate adjustments, the City People's Committee officially issued a decision to adjust the 2020 land price list. This land price list will be applied from October 31, 2024 to December 31, 2025.
In the newly issued price list, agricultural land prices are adjusted by multiplying the land prices in the 2020 price list by the adjustment coefficient (coefficient K) corresponding to each area and location. Compared to the old price, the adjusted agricultural land price has increased slightly.
For residential land, if the land price in 2020 after multiplying by coefficient K is only 30% of the market price, the adjusted land price list is about 50% of the market price.
The highest land price in Ho Chi Minh City belongs to plots of land on three routes: Nguyen Hue, Dong Khoi and Le Loi, District 1, at 687.2 million VND/m2. Compared to the land price in 2020 multiplied by the coefficient (567 million VND/m2), the adjusted land price on the above routes increased by 120.2 million VND/m2, equivalent to 21%.
However, this figure has decreased significantly compared to the draft released for comments at the end of July, when the proposed land price on the three routes was VND810 million/m2.
The lowest land price in the city is in Thieng Lieng residential area, Can Gio district at 2.3 million VND/m2. In the 2020 price list, when multiplied by coefficient K, the land price in this area is only 170,000 VND/m2. After adjustment, the land price has increased 13.5 times.
Conditions for compulsory land acquisition
What are the conditions for enforcing land recovery decisions?
Clause 2, Article 89 of the 2024 Land Law (effective from August 2024) stipulates that enforcement of land recovery decisions is carried out when the following conditions are met:
a) The land recovery decision has come into effect but the person whose land is recovered does not comply with the land recovery decision after the People's Committee of the commune, the Vietnam Fatherland Front Committee of the commune where the land is recovered and the competent land management agency or the unit or organization performing the task of compensation, support and resettlement have mobilized and persuaded;
b) The decision to enforce the land recovery decision has been publicly posted at the headquarters of the People's Committee at the commune level and at the common living place of the residential area where the land is recovered;
c) The decision to enforce the land recovery decision has come into effect;
d) The person subject to enforcement has received the decision to enforce the effective land recovery decision.
In case the person subject to enforcement refuses to receive the enforcement decision or is absent when the enforcement decision is delivered, the People's Committee at the commune level shall make a record.
Thus, the enforcement of land recovery decisions can only be carried out when all the conditions prescribed above are met.
Source: https://baoquocte.vn/bat-dong-san-moi-nhat-gia-chung-cu-chi-tang-khong-giam-gia-thu-lai-bat-dong-dieu-kien-de-cuong-che-thu-hoi-dat-293896.html
Comment (0)