The newly issued revised and supplemented land price list, updating land prices in the province, has had a strong impact on the real estate market, when information is provided fully and promptly, increasing transparency, creating a legal basis to help the real estate market recover after 2 years of stagnation.
Standardize input database
On January 17, 2025, the Provincial People's Committee issued Decision No. 05/2025 amending the Regulation attached to Decision No. 62/2019 regulating land prices in Vinh Phuc province for 5 years (2020 - 2024).
Accordingly, the newly issued revised and supplemented land price list adds 5,381 routes, adds 715 new routes and removes 132 routes. The prices have all increased, of which 84.26% of locations increased from 1 to 1.5 times; 5.77% of locations increased from 1.5 to 2 times and some locations increased 3-8 times. Thereby, updating land prices in many areas closer to reality, creating a legal corridor for the government, people and businesses to make good use of land resources and promote economic development.
In Vinh Yen city, the price of residential land on the road from Ngo Quyen to Nguyen Viet Xuan is 52.8 million VND/m2, while the price of commercial land is 19.7 million VND/m2 and non-agricultural land is 14.8 million VND/m2.
Tam Dao town also recorded the highest residential land price of up to 49 million VND/m2 at the section from the Venus hotel intersection running around the central park belt to the school intersection. In addition to residential land, agricultural land prices are also clearly regulated. Protective forest land and special-use forest land are calculated on par with production forest land, while the price of concentrated livestock land applies the highest level of agricultural land in the same area.
The revised and supplemented land price list issued at the end of January 2025 has created positive effects on the real estate market in the province.
Deputy Director of the Provincial Tax Department Nguyen Tien Dung said: The revised and supplemented land price list has been issued to remove many obstacles for both state management agencies as well as people and businesses in carrying out administrative procedures related to land.
In particular, determining obligations for land use fees, land rent, land use rights transfer... creates favorable conditions, shortens the time to handle administrative procedures for people and businesses, thereby increasing transparency for the real estate market, creating favorable conditions for people and businesses to make good use of land resources, creating new momentum to promote economic development.
Positive effects
According to Mr. Nguyen Xuan Vu, Director of Greenhome Real Estate (Vinh Yen), “The new land price list has many positive impacts on the real estate market. First of all, it is necessary to mention the tax payment of projects and investors when conducting transactions of buying, selling, leasing land, and changing land use purposes.
For example, previously, people who bought a plot of land only had to pay tax at the rate of 20 million VND, but now it can increase to 50 million VND because the land price is specifically regulated, individuals cannot declare the price on the real estate transfer contract lower than the price agreed on the notarized contract, to reduce the amount of tax payable.
After the new land price list is available, investors will have to consider, because many "input" costs will make the "output" product price higher (higher housing prices). The closer the land price list is to the market, the closer the State's tax collection will be, without tax losses. For the people, when the State carries out compensation for site clearance, there will be a basis for objective and transparent implementation, and the agreement between the two parties will be more favorable...
According to some real estate trading floors in Vinh Yen city, since the beginning of the year, although land prices have increased, purchasing power has been more active than in previous years. After a period of stagnant real estate market, the beginning of 2025 has seen a more positive turn.
The reason is that in addition to market rules, the province's issuance of a revised and supplemented land price list helps people and investors have more basis and feel more secure because of the transparency and closeness to market prices, including cases of having to receive compensation and site clearance.
In addition to the impact on the construction investment costs of real estate projects, the application of land price lists will limit the situation of two prices in the real estate market. This is a positive effect, limiting the situation of investors and real estate buyers declaring prices on real estate transfer contracts lower than the agreed price on notarized contracts, in order to reduce the amount of tax payable.
While land revenue accounts for a large proportion of total budget revenue, the declaration of real estate transfer prices lower than actual has caused a great loss to the State budget revenue. Therefore, when applying the revised and supplemented land price list according to market principles, it will limit the declaration of low prices when transacting land, helping to increase budget revenue from real estate transfer tax.
The application of a land price list close to the market will help speed up compensation and site clearance, ensuring the progress of public investment projects and real estate projects. According to previous regulations, compensation prices when the State reclaims land are based on principles, land valuation methods and land price frameworks, while land prices according to the old land price list are lower than market prices, leading to a situation where it is very difficult to reclaim land for project implementation.
The settlement of administrative procedures on land will be more convenient, ensuring the legitimate rights and interests of land users, reducing administrative violations on land due to increased penalties for delaying land use for speculation...
The newly issued revised and supplemented land price list contributes to promoting the healthy and transparent development of the real estate market, creating equality, publicity, and harmonization of interests among entities participating in the real estate market.
Article and photos: Chu Kieu
Source: https://baovinhphuc.com.vn/Multimedia/Images/Id/124031/Hieu-ung-tich-cuc-tu-bang-gia-dat-moi
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