Applications submitted before October 31st will still be processed using the old land prices.
Ho Chi Minh City People’s Committee held a press conference this afternoon to announce the decision to adjust land prices for 2020. These new land prices will be applied to all types of land in the city from October 31st, 2020, to December 31st, 2025.
Speaking at the conference, Vice Chairman of the City People’s Committee Bui Xuan Cuong stated that the adjusted land price framework is of great importance and will have a widespread impact, hence the high level of public interest. The drafting agency, as well as the City People’s Committee, have always been receptive to feedback and suggestions.
“Over the past three months, the agency in charge of drafting the adjusted land price framework has been meticulous in incorporating feedback and making adjustments to ensure they align with the socio-economic conditions of each locality, balancing the interests of the state, investors, and the people,” he said.
Vice Chairman of the City People’s Committee Bui Xuan Cuong announces the adjusted land prices. Photo: Anh Phuong |
According to Mr. Nguyen Toan Thang, Director of the Department of Natural Resources and Environment, the newly issued adjusted price framework comprises six types of land: agricultural land, residential land, commercial and service land, non-agricultural production land (excluding commercial and service land), commercial and service land in high-tech parks, and non-agricultural production land (excluding commercial and service land) in high-tech parks. Among these, the prices of four types of land remain unchanged from the previous framework.
Mr. Thang emphasized the key benefits of the adjusted price framework: transparency and fairness in levies, taxes, land use fees, and other financial obligations related to land; increased penalties for land-related violations, contributing to a cleaner real estate market; and faster determination of starting prices for land auctions.
Moreover, the adjusted price framework expedites the process of land revocation and setting prices for resettlement land plots.
Director of the Department of Natural Resources and Environment Nguyen Toan Thang provides information on the adjusted land prices. Photo: Anh Phuong |
On the other hand, Mr. Thang acknowledged that the adjusted price framework will impact the plans of many people regarding changing land use purposes. To address this, the government has assigned the Ministry of Finance to develop a decree on exempting and reducing land use fees for cases not specified in Clause 1, Article 157 of the 2024 Land Law.
Regarding transitional provisions, Mr. Thang clarified that land-related dossiers submitted to the one-door division of local authorities before October 31st will have their taxes and financial obligations calculated based on the 2020 land price framework.
New land prices are only 50% of market prices
According to the adjusted price framework just issued by the City People’s Committee, agricultural land is divided into three areas and three locations. The adjusted prices for agricultural land are determined by multiplying the prices in the 2020 land price framework by the current adjustment coefficient (ranging from 2.5 to 2.7 times).
The City’s Land Price Appraisal Council assessed that the adjusted agricultural land prices are appropriate and ensure stability for agricultural production activities, without affecting cases where the state revokes land. In such cases, the land price will be specifically determined based on market prices for compensation purposes.
The highest residential land price in Ho Chi Minh City is VND 687.2 million/m2. Photo: Anh Phuong |
For residential land, the highest price in the city is VND 687.2 million/m2, applicable to land plots on Dong Khoi, Le Loi, and Nguyen Hue streets in District 1. Compared to the 2020 land prices multiplied by the adjustment coefficient (VND 567 million/m2), the new residential land price has increased by VND 120.2 million/m2, or 21%.
The lowest residential land price is VND 2.3 million/m2, applicable to land plots in the Thien Liem residential area in Can Gio district. This new price reflects an increase of 13.5 times compared to the 2020 land prices.
The Land Price Appraisal Council opined that the adjusted residential land prices have been derived from transaction price data and actual transfer prices in the market. Additionally, the unit responsible for setting the price framework has taken into account the socio-economic conditions of each district and Thu Duc City to make appropriate adjustments.
It is worth noting that while the previous land prices, after being multiplied by the coefficient, were equivalent to only 30% of market prices, the newly issued adjusted land prices are approximately 50% of market prices.
Anh Phuong
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