HCMC – Hanoi authorities have proposed new charges on real estate transfers and construction projects in transit-oriented development (TOD) areas, including a 0.5% fee on property transactions, under a draft resolution open for public feedback.
The People’s Committee of Hanoi City said the proposal targets organizations, businesses and individuals benefiting from public transport infrastructure in TOD zones.
Under the draft, the city would impose a one-time infrastructure improvement fee equal to 0.5% of a land plot’s transaction value, based on the city’s official land price framework, when land-use rights or ownership of houses and buildings are transferred in TOD areas.
A separate one-time public transport connection fee of 0.1% of approved construction investment costs would apply to organizations and individuals seeking to connect residential areas, urban projects or buildings with railway infrastructure in TOD zones.
The proposal also outlines additional charges tied to increases in floor area resulting from higher land-use ratios or planning adjustments in TOD areas.
According to the draft, the charges would be calculated based on land-use fees or land rental payments linked to land allocation, leasing, changes in land-use purposes, adjustments in building functions, or revised planning that increases construction density or floor space.
The proposed measures would apply to three groups.
The first group covers organizations allocated or leased land for commercial, service or residential developments for sale or lease in TOD zones.
The second group consists of organizations and individuals constructing private homes taller than seven stories or with floor areas exceeding 500 square meters that seek approval to increase building height or construction area under TOD planning.
The third group includes land users already operating commercial, service or residential projects who want to renovate or expand projects to increase floor space under new TOD planning standards.
Hanoi City also proposed charges related to the exploitation of railway infrastructure assets within TOD areas.
The draft would apply a fee of 3% of annual pre-tax profit in core TOD zones and 1.5% in surrounding TOD areas to businesses and commercial households with annual revenue exceeding VND3 billion.
The city plans to implement the resolution from 2027.
Hanoi authorities said the proposed measures aim to create sustainable revenue sources and support reinvestment in TOD development projects to address traffic congestion, urban management issues and urban development constraints.
