The Department of Natural Resources and Environment believes that the issuance of the adjusted land price list does not increase the selling price of real estate products on the market - Photo: NGOC HIEN
Ho Chi Minh City has not yet decided on the time to apply the new land price list, but what people are concerned about is, if approved, how will this land price list affect the market in general and real estate businesses in particular?
New land prices do not affect real estate businesses
In response to concerns that the application of the new land price list will affect the selling price of real estate products, the Department of Natural Resources and Environment of Ho Chi Minh City said that the adjustment of the land price list will not affect real estate businesses because land use fees for real estate projects are determined by the surplus method.
Therefore, the result of land price determination will be different from the land price in the adjusted land price list because the project costs have been included in the land price.
The Department of Natural Resources and Environment determined that the issuance of the adjusted land price list does not increase the selling price of real estate products on the market.
In addition, the agricultural land price in the adjusted land price list is higher than before, making the land rent gap more harmonious than in reality, which leads to more transparent, public, fair and reasonable deductions for real estate businesses when fulfilling financial obligations.
The Department of Natural Resources and Environment believes that real estate prices operate according to the law of supply and demand, so the selling price will be decided 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 1 to December 31, 2024," the Department of Natural Resources and Environment said.
Some businesses will have an advantage.
Mr. Van Viet Son, CEO of Nam Long Land, said that when the new land price list is applied, it will be an advantage for some real estate businesses. According to Mr. Son, real estate businesses with large land funds and who have calculated land use fees will have an advantage.
Besides, Mr. Son said that calculating land use fees close to market prices will accurately reflect the costs that businesses have spent on compensation and site clearance.
However, Mr. Son commented that this will cause output prices to increase for projects.
Meanwhile, Mr. Le Huu Nghia, Vice President of the Ho Chi Minh City Real Estate Association, said that the increase in land prices does not affect real estate businesses, because most real estate businesses are calculated land use fees using the surplus method, and social housing projects are exempted from land use fees, so they are not affected.
Instead, this land price list will directly affect people when buying, selling, and transferring, having to pay higher registration fees than the old level, and how high or low the level is depends on the land price of each area according to the land price list.
However, Mr. Nghia said that when the land price increases, people will receive higher compensation and site clearance, so it is easier to get people's consensus and hand over the site soon.
Meanwhile, a representative of a business specializing in developing real estate projects said that in the case where the business agrees to compensate according to market prices, when calculating land use fees, the business can only deduct the compensation costs paid in advance according to the land price list.
In fact, businesses will benefit from faster compensation and site clearance time than the State's land acquisition and allocation, but the costs businesses have to pay are of course greater.
Worried that people in the suspended planning area will suffer
Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association, assessed that the group of people who will suffer the most when applying the new land price list are those whose houses and land are located in suspended planning areas such as newly built residential areas, renovated residential areas or suspended projects such as the Binh Quoi - Thanh Da project.
Because they are located in a suspended planning area, for many years these people have not been granted new construction permits, have not been allowed to divide their plots, have not been allowed to change land use purposes, so they have not been able to pay land use fees at the previous very low land prices.
According to Mr. Chau, if in the near future when the city finishes removing suspended planning and suspended projects, these people will continue to suffer a second loss because they will have to pay land use fees at high land prices according to the regulations 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
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