Introducing the new and notable features of Decree 71/2024 on land pricing, Mr. Dao Trung Chinh, Director of the Department of Planning and Land Resource Development (MONRE), said that the Decree details the process and content of land price determination using four methods: comparison, income, surplus, and land price adjustment factors.
Mr. Dao Trung Chinh, Director of the Department of Planning and Land Resource Development, introduces the new features of Decree 71
|
Regarding the surplus method, the procedure consists of six steps: Surveying and collecting information on the land lot(s) subject to valuation; information on land use planning, detailed construction planning, or master plan, and relevant documents; Estimating the total development revenue of the land lot(s); Estimating the total development costs of the land lot(s);
Estimating revenues and expenses for each year of project implementation and discounting to the present value at the time of land valuation; Allocating costs for the construction of technical infrastructure according to the area of land subject to land use levy, land lease with one-time payment for the entire lease period; Determining the land price of the land lot(s) subject to valuation.
At the step of estimating the total development revenue of the land lot(s), Mr. Chinh noted that the estimation of land transfer price, land lease price, rental price, and business product and service price to determine the total development revenue of the land lot(s) shall be done by the comparison method for land lot(s) that have been invested in construction following the approved detailed construction planning or master plan.
In addition, determining the fluctuation of land transfer prices, land lease prices, rental prices, and business product and service prices is based on data from the statistics agency or the real estate market management agency.
In the absence of data from the statistics agency or the real estate market management agency, the following shall apply:
For determining the fluctuation of land transfer prices, refer to the average consumer price index for housing and construction materials in the three consecutive years preceding the land valuation date, announced by the competent state agency for the provincial administrative unit. If the locality does not announce the consumer price index for housing and construction materials, the national consumer price index for housing and construction materials shall be used.
For determining the fluctuation of land lease prices and rental prices, refer to the fluctuation reflected in land and premises lease contracts. For determining the fluctuation of business product and service prices, refer to the actual data in the market investigated, surveyed, and proposed by the land pricing organization for decision by the Land Price Appraisal Council…
The Ultimate Guide to Land Valuation: Unveiling Ho Chi Minh City’s New Land Pricing Matrix
The guiding principle behind land price regulation is to strike a delicate balance between land usage fees, land rental fees, and compensation when the state retrieves the land. This equilibrium also extends to various land users and the state itself.
“Khanh Hoa: The Four Newly-Approved Land Projects, Now Cancelled”
The four projects in Nha Trang City, Khanh Hoa Province, had their land price approval decisions revoked, just over ten days after initial approval.
The Future of Bình Dương: Revitalizing Vacant Lands and Buildings Through Strategic Auctions
The province of Binh Duong is set to auction off a significant amount of land and assets, showcasing an attractive investment opportunity. With a total land bank of 113 locations and an expansive area of 22,152 hectares, the province plans to offer 38 sites, spanning 392 hectares, for auction. Notably, in 2024 alone, 10 locations, covering 8.3 hectares, will be up for grabs, presenting a unique chance for prospective investors to secure prime real estate in this vibrant region.
The Real Estate Renaissance: Unveiling a Transparent Future with the 2024 Land Law
As of August 1st, the Land Law, Housing Law, and the revised Law on Real Estate Business will come into force together, marking a new era for the real estate market. The market is set to undergo a significant transition towards enhanced transparency and efficiency in its operations. To shed light on this pivotal moment, a Vietnam News Agency reporter had an insightful discussion with Mr. Dao Trung Chinh, Director of the Department of Planning and Land Resources Development under the Ministry of Natural Resources and Environment.
