HCMC – The HCMC Real Estate Association (HoREA) has recommended delaying the issuance of new land price lists, according to a report from the Vietnam News Agency.
HoREA suggested that the city adhere to the current land price lists, established under the 2013 Land Law, until December 31, 2025, as permitted by Article 257 of the Land Law 2024.
HoREA advised focusing on completing the draft of the new land price lists, which should be announced and implemented from January 1, 2026, as required by the new Land Law.
The association believes that these new price lists will benefit residents whose land is acquired, offering more adequate compensation and support, as well as increased state budget revenues from land.
The new land price lists are not expected to impact the valuation of land for calculating land use fees or rental fees for real estate and commercial housing projects.
However, HoREA noted that while the draft prices are 10-20 times higher than the current list, they are still below market rates. This increase could impact people applying for land use certificates, as they will face much higher fees based on the new prices.
The introduction of new land prices will affect input costs across various economic sectors, particularly by increasing compensation costs for land clearance, driving up housing prices, rents, land rental fees, and costs associated with renting industrial spaces in zones and commercial, service, and tourism investment projects.
The HCMC Department of Natural Resources and Environment released a draft of the new land price list on July 29, 2024. The proposed new land prices, effective from August 1, 2024, to December 31, 2024, are projected to be 10-20 times higher than those established by Decision No. 02/2020/QD-UBND of 2020 by the HCMC People’s Committee.
