According to Decree 100/2024, when selling individual social housing units after 5 years, sellers are required to pay 50% of the land use fee based on the land price table issued by the Provincial People’s Committee.
However, many argue that the current land price table has nearly reached market rates, significantly increasing land use fees and creating financial burdens for residents looking to sell their homes.
HoREA proposes reducing the land use fee for individual social housing sales after 5 years to 20%. Illustrative image.
In a submission to the draft Decree amending and supplementing certain provisions of Decrees in the field of housing and real estate business, the Ho Chi Minh City Real Estate Association (HoREA) suggested reducing the land use fee to 20% as per land law regulations.
Mr. Le Hoang Chau, Chairman of HoREA, stated that the 50% rate is excessively high, especially since the adjusted land price table, issued under Article 257 of the 2024 Land Law, already incorporates a land price adjustment coefficient. For instance, Ho Chi Minh City’s adjusted land price table before consolidation saw land prices increase by 2.36 to 38.8 times compared to the 2020-2024 period.
Therefore, HoREA recommends reducing the fee to 20%. This adjustment would facilitate smoother market transactions while ensuring state budget revenue and maintaining policy incentives.
HoREA noted that the Ministry of Finance has also proposed a 30% land use fee for converting agricultural land to residential land. Thus, reducing the social housing land use fee to 20% would align with these regulations.
Under the 2023 Housing Law and Decree 100/2024, when selling social housing after 5 years, condominium units are exempt from land use fees, but individual social housing units must pay 50%. Eligible buyers of social housing include low-income individuals, workers, civil servants, military officers, police officers, veterans, the poor, near-poor, students, and households whose land has been reclaimed without receiving compensation in the form of housing or land.
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