Draft for consultation under a 9-day expedited procedure
On July 29, the Ho Chi Minh City Department of Natural Resources and Environment held a press conference to provide information on the draft decision to adjust the 2020 land price table, which has attracted public attention.
Mr. Nguyen Toan Thang, Director of the Department of Natural Resources and Environment, said that the upcoming 2024 Land Law stipulates that the land price table issued by the provincial People’s Committee under the old law will continue to be applied until the end of 2025. If necessary, the provincial People’s Committee shall decide to adjust the land price table to suit the actual situation in the locality.
Based on this regulation, the Ho Chi Minh City People’s Committee found that the 2020 land price table is no longer suitable. In addition, it is necessary to issue new land prices for resettlement in accordance with the new land law.
Therefore, in early July 2024, the Ho Chi Minh City People’s Committee assigned the Department of Natural Resources and Environment to coordinate with departments, sectors, and localities to build a draft adjustment of the land price table.
 Mr. Nguyen Toan Thang, Director of the Ho Chi Minh City Department of Natural Resources and Environment (first from left), speaks at the press conference. Photo: Ngoc Thanh |
“After receiving the direction, the Department of Natural Resources and Environment immediately advised on a plan for implementation. The new land price table will not have an adjustment factor but only a single price frame. Ho Chi Minh City is not doing this alone, but all provinces and cities nationwide are also implementing it,” said Mr. Thang.
Regarding the reason for consulting on the draft adjustment of the land price table within only 9 days, and if approved, it will be applied from August 1, Mr. Thang said that the Department of Natural Resources and Environment is carrying out an expedited procedure approved by the City People’s Committee.
According to Mr. Thang, the new land price table is built on a database of land transaction prices in the market. This data is collected from tax departments or land registration offices, then adjusted by consulting units, and finally consulted with related units.
Regarding the impact, according to the Director of the Department of Natural Resources and Environment, when applied, the new land price table will bring many benefits. Compensation prices and resettlement land prices are both based on this new land price table. Real estate transactions also become more transparent, without “two-price” home sales, and the state does not lose budget revenue.
‘Will not increase real estate prices’
Regarding the opinion that adjusting the land price table will contribute to increasing real estate prices, Mr. Nguyen Toan Thang said that this information is not correct. Previously, real estate transaction prices were much higher than the state’s land prices. Meanwhile, the adjusted land price table will be updated according to the actual transaction prices in the market.
“The new land price table will accurately reflect the market transaction prices. However, initially, the Department of Natural Resources and Environment will propose a price that is close to the market price for further adjustment,” affirmed Mr. Thang.
On this issue, a representative of the Land Economy Department under the Department of Natural Resources and Environment said that the new land price table does not affect the input cost of the project, so it will not increase real estate prices. In addition, it should be noted that real estate prices operate according to the law of supply and demand.
For cases where people submit land-related procedures before August 1 this year, a representative of the Ho Chi Minh City Department of Natural Resources and Environment said that the state agency will calculate the land price at the time of receiving the full dossier.
As we have reported, the Ho Chi Minh City Department of Natural Resources and Environment is consulting on a draft decision to adjust the 2020 land price table towards increasing land prices and gradually bringing land prices closer to market prices.
If approved, the adjusted land price table is expected to be applied from August 1 to the end of this year. The adjusted land prices will be updated for 4,565 roads in the city, an increase of 557 roads compared to the current table.
For agricultural land, compared to the 2020 land price table, the expected adjusted land price table still maintains the same division of areas and land locations.
In terms of price, while the 2020 land price table stipulates the prices of land types belonging to agricultural land according to 3 positions and 3 areas, the expected adjusted land price table stipulates prices according to 3 positions in each district and county.
With the application of a new pricing method, the prices of land types belonging to agricultural land in the districts and counties have increased dramatically. For example, the price of land for growing annual crops in position 1 of Go Vap district has increased from VND 250,000/m2 to VND 8.6 million/m2.
For residential land, the expected adjusted price has increased significantly compared to the 2020 land price table. The average increase ranges from 5 to 10 times compared to the previous price in districts 1, 3, 5, 6, 8, 10, 11, Phu Nhuan, Tan Binh, Go Vap, and Binh Thanh.
The districts and counties with an average land price increase of 10-20 times compared to before include districts 4, 7, 12, Tan Phu, Binh Tan, Nha Be, Can Gio, Binh Chanh, Cu Chi, and Thu Duc City.
Especially, the residential land price in Hoc Mon district has increased by an average of 22 times compared to before. The highest land price in the district belongs to Le Lai Street, which has increased from VND 6.23 million/m2 to VND 87 million/m2.
Comprehensive regional connectivity
In addition to building strong physical infrastructure, Ho Chi Minh City needs to strengthen its soft connections with other provinces in the region in order to promote economic development. This includes prioritizing the training of skilled workforce and ensuring access to quality healthcare.
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