Accordingly, information about land prices, land lease prices, and rent prices for applying comparison, surplus, and adjustment factor methods for land prices including:
First, the winning bid price for land use rights for cases where the winning bidder has fulfilled the financial obligations according to the auction decision.
Secondly, the land price has completed tax procedures at the tax authority or registered at the land registration office for cases of transferring land use rights.
Third, land lease prices, premises rental prices; Fourth, land transfer prices on the market.
Decree 12/2024/ND-CP just issued by the Government also supplements Article 5b regulating information to apply the land pricing method. Illustrative image.
The decree also specifies that the information to apply the land pricing method is information within a period not exceeding 24 months from the time of land pricing, prioritize using the most recent information with the valuation time and collected from the following sources:
National database on land, price database; land registration office, organization implementing land use rights auction, asset auction organization; tax agency, agriculture and rural development agency; real estate trading floor, real estate company;
Organizations with land pricing determination functions, appraisal companies; credit institutions, real estate associations, research institutes/centers; direct interviews with transferees or recipients of transfers for cases that have been transferred on the market.
According to Decree 12/2024/ND-CP, information on income, costs from non-agricultural land use to apply income method is collected from the following sources:
Income from production activities, business recorded in financial statements or income from land leasing, premises leasing income for a period of 3 years (calculated from January 1 to December 31) continuously before the valuation time.
In case the income of the land plot, land area to be valued is not fully recorded in each year, does not reflect the actual income from land use, information on land rental prices, premises rental prices of at least 03 land plots for comparison.
The cost to generate income from land use as stipulated is determined based on the norms, unit prices issued by competent state agencies or construction investment capital announced by the Ministry of Construction; in case there are no norms, unit prices or construction investment capital rates announced by competent state agencies, it is based on information, actual popular cost data on the market of at least 03 land plots closest to the land plot, land area to be valued at point b of this clause.
At the same time, Decree 12/2024/ND-CP stipulates that information on income, costs from agricultural land use to apply income method is collected at statistical agencies, tax agencies, agriculture and rural development agencies; in case there is no statistical data, no data from tax agencies, agriculture and rural development agencies, then collect information on actual popular income, costs on the market of at least 03 land plots closest to the land plot, land area to be valued as prescribed in point b of this Article, specifically as follows:
In a period of 03 years (calculated from January 1 to December 31) continuously before the valuation time for annual crop land, aquatic crop land, saline land, other agricultural land;
At least 03 consecutive harvests before the valuation time for long-term planted crop land; within one exploitation cycle before the valuation time for production forest land, industrial plantation land according to the regulations of relevant laws.
Priority order for selecting comparable plots of land
In addition, Decree 12/2024/ND-CP stipulates that when applying comparison method, surplus method, the plots of land for comparison must be selected in the following priority order:
Similar in terms of location, infrastructure conditions, area, size, shape, land use coefficients, building density, building height, and other factors affecting land prices compared to the land plots to be valued;
Closest distance to the land plot, land area to be valued and not limited by the administrative boundaries of the commune level, district level, and provincial level administrative units.
According to Decree 12/2024/ND-CP, the unit determining land prices when collecting information to apply land pricing method must be honest, objective, and responsible before the law for the accuracy of the survey information.
Additionally, according to Decree 12/2024/ND-CP, Land Registration Office, organization implementing land use rights auction, organization/asset auction; tax agency, agriculture and rural development agency; real estate trading floor, real estate company; organizations with land pricing determination functions, land appraisal businesses; credit institutions, real estate associations, institutes, research centers are responsible for providing information to serve land pricing work in writing or electronic form within a time not exceeding 05 working days from the date of the request document from the land price determining unit.
The unit determining land prices is responsible for storing, managing, and using the collected information, data in accordance with the provisions of law.
