HoREA explains why the adjusted land price list should not be applied yet

It takes time to "adapt" to the land price list.

Accordingly, HoREA welcomed the city's listening to comments on the "Draft Land Price List applicable from August 1, 2024" and suggested that it should only focus on developing the "First Land Price List" applicable from January 1, 2026 according to the provisions of the 2024 Land Law. At the same time, the association also calculated the financial obligations that people may have to pay for land use fees according to the old land price list and the "Draft Land Price List" as follows:

Case 1: Mr. A applied for a Certificate for a house that was built a long time ago on a plot of land with an area of ​​100m2 adjacent to Nguyen Van Linh Street (Binh Hung Commune, Binh Chanh District). This plot of land is originally agricultural land with a price of 200,000 VND/m2 (location 1) and the land price on Nguyen Van Linh Street is 6.8 million VND/m2 according to the Land Price List in Decision 02 dated January 16, 2020 of the Ho Chi Minh City People's Committee (Current Land Price List).

If only calculating land use fees according to the current Land Price List without calculating the land price adjustment coefficient of 3.3 times for Area II, Mr. A only has to pay 660 million VND in land use fees. If including the adjustment coefficient, Mr. A has to pay 2.178 billion VND.

But if calculating land use fees according to the "Draft Land Price List" which is expected to stipulate that agricultural land adjacent to Nguyen Van Linh Street is 3.2 million VND/m2 (location 1) and the land price on Nguyen Van Linh Street is 65 million VND/m2 (increased 9.55 times), Mr. A will have to pay land use fees of 6.18 billion VND.

Thus, the land use fee that Mr. A must pay according to the "Draft Land Price List" will increase 9.36 times compared to the land use fee of 660 million VND and increase 2.83 times compared to the land use fee of 2.178 billion VND when calculating the coefficient.

Many opinions say that people need time to "adapt" before adjusting land prices.

Case 2: Ms. B has the right to use the 200 m2 plot of land adjacent to Nguyen Van Linh Street (Binh Hung Commune, Binh Chanh District) and due to her previous lack of financial capacity, Ms. B only applied for a Certificate for the 100 m2 area of ​​residential land where the house was built, the remaining 100 m2 area of ​​cement yard was determined to be land for growing short-term agricultural crops. Now Ms. B needs to apply to change the land use purpose for 100 m2 of cement yard to residential land, Ms. B must pay 6.18 billion VND if calculated according to the "Draft Land Price List".

Case 3: Mr. C applied to separate a plot of 1,000 square meters of agricultural land adjacent to the plot of land with his house. At the same time, he applied to change the land use purpose from agricultural land to 5 plots of residential land, each plot has an area of ​​200 square meters to divide among his children.

This agricultural land area is adjacent to Nguyen Van Linh Street (Binh Hung Commune, Binh Chanh District). Calculating the land use fee according to the current Land Price List, Mr. C must pay 6.6 billion VND in land use fee. If the coefficient of 3.3 is added, Mr. C must pay 21.78 billion VND in land use fee.

But if the land use fee is calculated according to the "Draft Land Price List" with the price of 3.2 million VND/m2 (location 1) and the land price on Nguyen Van Linh Street is 65 million VND/m2, Mr. C must pay 61.8 billion VND in land use fee. This is 9.36 times higher than the land use fee of 6.6 billion VND, and 2.83 times higher than the land use fee of 21.78 billion VND when adding the coefficient.

HoREA also stated that if the above cases were asked to choose the amount of land use fee to be paid, either according to Decision 2/2020/QD-UBND and Decision 56/2023/QD-UBND or according to the "Draft Land Price List", then surely all would suggest choosing the amount of land use fee to be paid according to the current Land Price List to suit the financial capacity of more individuals and households.

Resolving difficulties for cases of "suspended" planning

In particular, HoREA also brought up the fourth case, who are also the most disadvantaged people when their houses and land are located in "suspended" planning areas such as newly built residential areas, renovated residential areas; or "suspended" projects such as the Binh Quoi - Thanh Da project... Therefore, for many years, these people have not been granted new construction permits, have not been allowed to separate plots, have not been allowed to change land use purposes, so they have not been able to pay land use fees at the previous very low land prices.

If in the near future, Ho Chi Minh City removes the "suspended planning, suspended projects", these people will continue to suffer a second loss because they will have to pay land use fees at very high land prices according to the provisions of the "Draft Land Price List". Therefore, HoREA has requested that the agency drafting the Land Price List should clearly see that at present, it is not appropriate to issue a new Land Price List applicable from August 1, 2024.

People with land stuck in planned areas will not have time to deal with land price adjustments.

The Association also cited that currently in Ho Chi Minh City, there are still more than 13,035 land plots that have not been granted a Certificate, accounting for 0.7% of the total number of land plots in the city; or those who need to legalize land use rights for agricultural land areas interspersed in stable urban residential areas attached to existing houses; or those who need to separate land plots and simultaneously change the land use purpose to residential land as illustrated in the above cases.

For the above reasons, the current Land Price List and land price adjustment coefficient will continue to be applied until December 31, 2025 according to the 2024 Land Law (Clause 1, Article 257), so that people have enough time to complete procedures to apply for a Certificate and arrange finances to pay land use fees at the old price, reducing financial pressure on people.

At the same time, the Association also requested the Ho Chi Minh City People's Committee to quickly and resolutely direct the authorities to focus on removing "suspended planning and suspended projects" so that people in these areas have enough time to exercise their rights as land users, and be able to pay land use fees in 2025 according to the current Land Price List.

Recently, regarding the issuance of Certificates of land use rights, house ownership rights, and assets attached to land, the Branch of the Land Registration Office of Thu Duc City (HCMC) has sent a document to the People's Committees of 34 wards in the area to notify about the registration of assets attached to land plots that have been granted certificates or registration of changes in assets attached to land for construction permits with a term (temporary construction permits). This means that households with temporary houses built on planned land also have the opportunity to be granted red books.

Source: https://www.congluan.vn/horea-ly-giai-vi-sao-chua-nen-ap-dung-bang-gia-dat-dieu-chinh-tai-tp-hcm-post306556.html