Concerned that housing prices will only increase, businesses wonder about how to price land

At the seminar "Land valuation: Correct and sufficient" organized by Thanh Nien newspaper this morning (June 14), many business leaders and experts expressed concerns and pointed out inadequacies in land valuation methods.

Mr. Le Hoang Chau - Chairman of the Ho Chi Minh City Real Estate Association (HoREA) - estimated that Ho Chi Minh City still has more than 58,000 apartments that have not been granted pink books. One of the reasons leading to this situation is the "blockage" of land valuation.

According to Mr. Chau, Decree 44/2014 of the Government regulating land prices has stipulated methods for land valuation. However, in reality, the criteria for implementing land valuation are stuck, mainly the surplus method, leading to some related officials and civil servants getting into trouble with the law, and businesses also getting stuck. Businesses all want the regulations to be easy to understand and easy to implement.

Mr. Tran Quoc Dung - Deputy General Director of Hung Thinh Corporation - said that one of the current problems is that land use fees account for a very significant component in the input price list for building real estate prices. When land prices are calculated too high, combined with other business expenses that are not fully calculated, the project development costs will be inflated. From there, housing prices can only increase, not decrease, despite many efforts from all parties.

Mr. Dung proposed that it is necessary to harmonize the interests of the State, people and businesses in calculating land use fees. Land use fees need to be calculated reasonably to solve the problem of land prices in line with market prices.

Lo ngại giá nhà chỉ tăng, doanh nghiệp băn khoăn về cách định giá đất - 1 — Land valuation is a matter of concern for the business community (Illustration: Trinh Nguyen).

Mr. Le Huu Nghia - General Director of Le Thanh Company - stated that land use fees and actual costs when enterprises develop land for projects were forgotten in the draft Decree regulating land prices and guiding the implementation of the 2024 Land Law, expected to take effect in early August.

According to Mr. Nghia, the land use fee is calculated by subtracting the total cost and the standard profit from the total revenue. However, the State agency always wants the highest revenue and lowest cost to maximize the land use fee. On the contrary, the enterprise proves that the cost is valid and the revenue is appropriate, which leads to conflicts.

In addition, Mr. Nghia also mentioned that with social housing, businesses find land and pay compensation themselves. That land is not included in the cost because social housing is provided by the State. After the business has paid compensation, the State will return the money to the business. However, the compensation has been delayed for a long time without being paid, dragging on from year to year, causing losses to the investor.

Listening to opinions from experts and businesses, Mr. Nguyen Dac Nhan - Deputy Director of the Department of Land, Ministry of Natural Resources and Environment - admitted that in the process of amending the Decree, despite great efforts, there are still many inappropriate regulations.

For example, the process of land valuation is still confusing in choosing the valuation method. Along with that, the implementing force is also limited in both quantity and quality. Consulting units do not dare to do it because of weak database, thin human resources... leading to the final results not being objective and honest.

According to Mr. Nhan, in the process of developing the Draft Decree regulating land prices and guiding the implementation of the 2024 Land Law, the Ministry of Natural Resources and Environment has accompanied ministries and branches such as the Ministry of Finance, the Ministry of Construction... The general view is to try to absorb comments from businesses, experts, localities... to handle existing problems.

Land valuation methods have been included in the law, specifically in which cases which methods are applied, which conditions... to help units no longer be confused. Input data, quality, honesty, completeness... are also fully guided.

The representative of the Ministry of Natural Resources and Environment also emphasized that he was very concerned about the issue of land valuation. Because if land valuation is not correct or sufficient, it will lead to serious consequences for businesses, the state and society. Therefore, this unit will continue to receive comments and contributions to build a transparent and synchronous policy system.

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