Ho Chi Minh City plans to increase land prices 5-50 times from August 1: People complain because it's too urgent

Ho Chi Minh City's adjusted land price list is expected to be applied from August 1 with an increase of 5 to 50 times, helping land prices to be closer to the market but also causing many difficulties when affecting 11 groups of subjects.

Of the 11 subjects, 3 groups were unaffected and 8 groups were affected.

Too urgent

Reading information about the draft decision to adjust land prices in Ho Chi Minh City from August 1, Mr. Nguyen Thanh Vinh (residing in Go Vap District, Ho Chi Minh City) worriedly called the press to verify, hoping that the information was incorrect.

"August 1st this year or next year? Adjusting land prices is good, but if it's August 1st this year, it's too urgent!"Mr. Vinh said.

According to Mr. Vinh, in 2023, he bought a piece of agricultural land and completed the procedures to convert it to residential land. For this land, he owes 300 million VND in land use fees. He plans to save up to pay this amount in August this year. However, if the current price increase is applied, this amount could be up to several billion VND.

In Mr. Vinh's case, if he pays land use fees according to the new price list, it means he has to "buy back" his own land a second time.

"There needs to be a roadmap, at least half a year. But if we suddenly increase it after a week of decision, people will be stuck and unable to cope."Mr. Vinh commented.

Similarly, Mr. Le Ngoc Tra (residing in Thu Duc City, Ho Chi Minh City) also said that the draft decision to adjust land prices of Ho Chi Minh City applied immediately after one week of announcement is too hasty.

The old land price list applies until the end of 2025. If adjusted, people should be given time to adapt and prepare.

The application of the new price list affects most households who previously did not have the conditions to change the land use purpose. Previously, they did not have enough money to change, so now it is difficult to change anymore.

"The house my wife and I are living in is also land for perennial crops, not yet converted to residential land, we are living in a temporary house. Over the past years, my wife and I have been saving money to change the land use purpose but it is not enough. Now that the land price has increased dozens of times, my wife and I do not dare to think about changing the land use purpose anymore, we accept living in a temporary house,"Mr. Tra said.

Mr. Pham Duy Khanh (residing in District 3, Ho Chi Minh City) is confused because he accidentally "embraced" the land use rights transfer for several plots of land he bought with a group of friends.

In 2023, he and a group of friends bought a piece of agricultural land in Cu Chi district. After paying in full, he took responsibility for changing the land use purpose to residential land for this plot of land when the conditions were met. The transfer fee was paid to him in advance by his friends, according to the land price list at that time.

Currently, if the new land price list is applied, the above land will increase dozens of times. This means that the transfer fee will also increase accordingly.

"I don't know how to handle it yet. If my friends refuse to pay the transfer fee and leave me to "bear" it alone, it will be very difficult."Mr. Khanh is worried.

Need a roadmap

Real estate finance expert Phan Cong Chanh, General Director of Phu Vinh Group, said that the new land price list has many positive impacts.

The most profound impact is that the new land price will gradually approach the market price. This will help reduce complaints about land prices and speed up the process of support, compensation and resettlement when land is recovered.

At the same time, new land prices will promote public investment projects because the site clearance process is faster, more convenient, and more popular.

However, the somewhat hasty application of Ho Chi Minh City also has a significant impact on the people. In particular, the people who need to change the purpose of land use to serve social security needs such as building new houses, dividing land for children to build houses, etc. are the most affected.

"In difficult areas of Ho Chi Minh City such as suburban districts, the price increase is even higher. People will find it difficult to accept Ho Chi Minh City's 'say and do' approach like this case."expert Phan Cong Chanh said.

Therefore, Mr. Chanh proposed to postpone the implementation time so that people have time to adapt and prepare.

"The expected implementation time should be delayed by at least 12 months and strong propaganda should be given to the people. If possible, a survey of the people should be conducted."Mr. Phan Cong Chanh emphasized.

According to the Department of Natural Resources and Environment of Ho Chi Minh City, 3 groups of subjects are not affected when adjusting land prices, including: Calculating land rent when the State leases land and collects annual land rent; Calculating income tax from land use right transfer for households and individuals; Calculating starting price for land use right auction when the State allocates land, leases land in cases where land plots and land areas have been invested in technical infrastructure according to detailed construction planning.

8 groups of affected subjects: Groups of households and individuals recognized and having their land use purposes changed; Calculating land use tax; Calculating fees in land management and use; Calculating fines for administrative violations in the land sector; Calculating compensation to the State for causing damage in land management and use; Calculating land use fees in cases of selling state-owned houses to tenants.

The land price list adjusted according to the 2024 Land Law has been implemented according to market principles, close to market prices, and is no longer controlled by the land price framework.

Therefore, the highest land price in Ho Chi Minh City at the three axes of Dong Khoi, Le Loi, Nguyen Hue increased to a maximum of 810 million VND/m2, the current price list is only 162 million VND/m2 (5 times increase).

Or Thu Duc City, although established since the beginning of 2021, the land price list from 2020-2024 on many routes is only from 5 million VND/m2. Now according to the land price list, it is expected to skyrocket from 10 times to 30 times.

In Thu Duc City, some sections of Thao Dien, Tran Nao, Luong Dinh Cua streets... are expected to see new land prices increase 11 times.

Most notably in the districts of Hoc Mon, Binh Chanh, Nha Be, Cu Chi, Can Gio, land prices have increased from more than 10 times to more than 30 times, in some places up to 50 times.