The Department of Natural Resources and Environment believes that the issuance of the adjusted land price list will not increase the selling price of real estate products on the market - Photo: NGOC HIEN
Ho Chi Minh City has not yet finalized the implementation date for the new land price list, but what concerns the public is how, if approved, this land price list will impact the market in general and real estate businesses in particular?
The new land prices will not affect real estate businesses.
Addressing concerns that the new land price list would impact real estate prices, the Ho Chi Minh City Department of Natural Resources and Environment stated that the adjustment would not affect real estate businesses because land use fees for real estate projects are determined using the surplus method.
Therefore, the resulting land price will differ from the land price in the adjusted land price table because the project costs have been factored into the land price.
The Department of Natural Resources and Environment believes that the issuance of the adjusted land price list will not increase the selling price of real estate products on the market.
Furthermore, the adjusted land prices for agricultural land have increased compared to before, making the land rent differential more harmonious with reality. This leads to more transparent, public, fair, and reasonable deductions for real estate businesses when fulfilling their financial obligations.
The Department of Natural Resources and Environment believes that real estate prices operate according to the law of supply and demand, therefore the selling price will be determined by the market.
"Business activities in general are not affected by the adjusted land price list because the application period of the land price list is only from August 1st to December 31st, 2024," the Department of Natural Resources and Environment stated.
Some businesses will have an advantage.
Mr. Van Viet Son, CEO of Nam Long Land, said that the new land price list, when implemented, will be advantageous for some real estate businesses. According to Mr. Son, real estate companies with large land reserves and who have already calculated land use fees will have an advantage.
In addition, Mr. Son argued that calculating land use fees close to market prices would accurately reflect the costs that businesses have incurred for compensation and land clearance.
However, Mr. Son believes this could lead to an increase in the selling price for these projects.
Meanwhile, Mr. Le Huu Nghia, vice chairman of the Ho Chi Minh City Real Estate Association, argued that the increase in land prices does not affect real estate businesses, as most real estate companies calculate land use fees using the surplus method, and social housing projects are exempt from land use fees, so they are not affected.
Instead, this land price list will directly affect people when buying, selling, or transferring land, requiring them to pay higher registration fees than before, with the exact amount depending on the land prices of each area according to the land price list.
However, Mr. Nghia believes that when land prices increase, people will receive higher compensation for land clearance, making it easier to gain people's consent and hand over the land sooner.
Meanwhile, a representative of a real estate development company stated that if a company negotiates compensation based on market prices, when calculating land use fees, the company can only deduct the compensation costs already advanced according to the land price list.
In reality, businesses will benefit from faster compensation and land clearance compared to the State reclaiming and allocating land, but the costs incurred by businesses will naturally be higher.
Concerns that residents in areas with stalled development plans will suffer losses.
According to Mr. Le Hoang Chau, chairman of the Ho Chi Minh City Real Estate Association, the group of people who suffer the most from the application of the new land price list are those whose houses and land are located in areas with suspended planning, such as new residential construction areas, residential renovation areas, or suspended projects like the Binh Quoi - Thanh Da project.
Because they are located in a suspended planning zone, for many years these residents have not been granted new construction permits, have not been allowed to subdivide their land, and have not been allowed to change the land use purpose, thus they have not been able to pay land use fees at the previously very low land prices.
According to Mr. Chau, if in the near future the city resolves the issues of suspended planning and projects, these people will continue to suffer losses and disadvantages for the second time because they will have to pay land use fees at high land prices as stipulated in the draft land price list.
Source: https://tuoitre.vn/doanh-nghiep-bat-dong-san-nao-duoc-loi-voi-bang-gia-dat-moi-20240802171234913.htm
