Latest proposal regarding land price list in Ho Chi Minh City

Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association (HoREA), has just sent an urgent dispatch to the National Assembly Standing Committee "Requesting consideration to issue a document explaining the law for Clause 1, Article 257 of the 2024 Land Law so that localities can unify their understanding and ease of implementation".

According to HoREA, on July 29, the Department of Natural Resources and Environment of Ho Chi Minh City (DONRE) announced information about the "Draft Adjusted Land Price List" (New Land Price List) in Ho Chi Minh City applied from August 1 to December 31, 2024, which has received great attention from people, businesses and real estate investors.

According to HoREA, the land price of the new land price list is commonly 10-20 times higher than the land price of the current land price list in 2020 of the Ho Chi Minh City People's Committee. Of which, 1 district and 4 counties have land price increases in some locations of over 30 times, in particular, some locations of land in Hoc Mon district have increased prices up to 51 times... But according to the Department of Natural Resources and Environment, the land price list is only about 70% of the land price on the market.

Up to now, HoREA has found that only Ho Chi Minh City has announced the new Land Price List applicable from August 1 to December 31, 2024.

Because according to the Department of Natural Resources and Environment, the 2024 Land Law no longer stipulates the land price adjustment coefficient and must update resettlement land prices. If not issued, it will lead to congestion in determining financial obligations of households and individuals and compensation for resettlement site clearance...

But according to Mr. Chau, the content of Clause 1, Article 257 of the 2024 Land Law allows the application of the Land Price List... to continue to be applied until December 31, 2025. If necessary, the Provincial People's Committee will decide to adjust it to suit the actual situation of land prices in the locality.

According to Mr. Chau, if the Department of Natural Resources and Environment has concerns about the responsibility of the Provincial People's Committee issued according to the provisions of the 2013 Land Law, which will continue to be applied until December 31, 2025, which may not be clear enough, it is completely possible to build a new price list according to the formula:

Land price of the new land price list = Land price of the current land price list x Current land price adjustment coefficient... both complies with the provisions of Clause 1, Article 257 of the 2024 Land Law, overcomes the situation of land prices in the new price list increasing too high, and does not shock people who need to apply for certificates (red books, pink books).

The recent announcement of the new land price list by the Department of Natural Resources and Environment will help the city's residents know that the new land price, when applied according to the provisions of the 2024 Land Law, may increase many times so that people who need to apply for a Certificate have enough time of 1.5 years to prepare money to fulfill financial obligations according to the new land price.

In particular, according to Mr. Chau, currently all land use fee calculation records when the state recognizes the right to use residential land or allows the change of land use purpose from agricultural land, non-agricultural land that is not residential land to residential land for the residential land area exceeding the land allocation limit for households and individuals in Ho Chi Minh City are suspended from performing land use fee calculation procedures at the tax authority to await the decision of the competent authority on whether or not to issue a new land price list and the time of application, if any.