Proposal for pricing regulation in areas without market price information

Survey, collect information on land prices, and market

The Ministry of Natural Resources and Environment is soliciting opinions on a draft Decree regulating land prices, which proposes to regulate land prices in the land price table according to the land location.

In the draft, the Ministry of Natural Resources and Environment proposes the criteria for determining the land location as follows: For agricultural land, the land location is determined based on productivity, crop and livestock production; infrastructure conditions; advantages for production, business; distance from the land users’ place of residence to the production place; distance from the production place to the concentrated market for products; land use characteristics.

For non-agricultural land, the land location is determined based on each road, road section, street, street section and based on: Technical infrastructure conditions, social infrastructure, advantages for production, business; distance to the political, economic, and commercial center in the area.

        

        

    

In terms of land location classification, it includes location 1 which is the location where plots of land have the most favorable factors and conditions; the next locations are the locations where plots of land have less favorable factors and conditions compared to the adjacent location.

The draft also specifies that based on the regulations and actual situation at the local level, the Provincial People’s Committee shall determine the locations for each type of land, the number of land locations in the land price table.

According to the draft, it is necessary to check and adjust the land locations. Specifically: Check and review the results of land location allocation for each land group according to the specified criteria. Adjust and improve the land location description for each land group based on the results of the check and review.

According to the draft, market land price information is collected from the land price database, on real estate trading floors for types of land with land use rights transfer, land use rights auction.

For localities that have not yet built a land price database, the organization shall conduct a survey and collect market land prices in communes, wards, and towns through land transferors and land users.

For agricultural land in areas without land use rights transfers, survey and collect information on income, costs to generate income from plots of land to determine land prices according to the income method.

Statistical, synthesize market land prices by each land location in communes, wards, and towns.

Building land prices in the land price table according to the land location

According to the draft, the price level of land locations is determined by the arithmetic average price of surveyed plots of land at each land location.

For land locations without market land price information, based on the land price in the current land price table, the price level of land locations that have been determined will be applied using the direct comparison method to determine the price level of the remaining land locations.

The draft specifies that it is necessary to analyze and select specific factors affecting land prices and establish adjustment coefficients for factors affecting land prices.

Specifically, analyze and select specific factors affecting land prices for types of land in the agricultural land group; analyze and select specific factors affecting land prices for types of land in the non-agricultural land group (The specific selection of factors affecting land prices is based on the analysis, evaluation of the results of investigating natural, socio-economic conditions, land management and use situation, and market land prices).

Establish adjustment coefficients for factors affecting the prices of specific plots of land as a basis for determining the prices of each plot of land according to the land location in the land price table.

Check, adjust land prices according to land location, adjustment coefficients for factors affecting land prices, and compatibility with the price level of land locations in the land price table with market land prices.