In line with the brand new land worth checklist from December 20, 2024, many Hanoians need to pay a whole bunch of tens of millions to billions of VND to transform to residential land. The consultant of the administration company mentioned that the land worth checklist approaching the market worth is a good sport, there isn’t a longer a distinction between the 2 costs.
The adjusted land worth checklist was introduced by the Hanoi Individuals’s Committee and is efficient from December 20 till December 31, 2025, recording a pointy enhance in comparison with the outdated land worth checklist. This additionally causes individuals’s land use charges to skyrocket.
Mr. Pham B. (My Duc district, Hanoi) mentioned that on the finish of 2024, he had simply completed paying land use charges to transform part of residential land to backyard land. As a result of the time to obtain the choice to finish the applying is after December 20, 2024, the land use charge utilized in line with the brand new worth checklist is greater than 800 million VND. In the meantime, if the outdated land worth checklist is utilized, his household must pay about 350 million VND.
Ms. Nguyen T. (Lengthy Bien, Hanoi) shared that her household has greater than 1,000 sq. meters of backyard land. Now, if she needs to transform it into residential land to share together with her kids, she should pay about 15 million VND/m2. Thus, the anticipated quantity to transform your complete space is about 15 billion VND. This quantity is past their monetary capability, so the household is contemplating balancing it accordingly.
Rising land costs and elevated land use charges have additionally compelled many traders holding onto agricultural land in suburban areas to regulate their funding plans. Just lately, Mr. Cao N. (Ha Dong, Hanoi) has invested in agricultural land and perennial crop land in Thach That, Chuong My (Hanoi) and has not but transformed it to residential land.
“In these areas, land costs have elevated 2-4 instances, so the price of changing to residential land may also enhance. Subsequently, I’m contemplating choices and pausing the conversion for now to attend for extra market developments within the close to future,” Mr. N. mentioned.
Individuals steadiness their conversion wants, and land costs will regularly stabilize
On the current workshop on making use of the land worth checklist in line with the Land Regulation 2024, Professor. Dang Hung Vo, former Deputy Minister of Pure Assets and Atmosphere (NON-MT) assessed that in reality, whether or not the land worth checklist is low or excessive, there are “complaining” opinions.
Mr. Vo emphasised that the land worth checklist should be equal to the market and appropriate for the market. The query is the best way to implement it? That is the story of the State’s coverage. Which circumstances apply 80% of the market, which circumstances apply 20% of the market, particular circumstances could have completely different software charges. The best way to apply it to draw funding, develop the financial system, and guarantee social safety is dependent upon the State’s regulatory coverage.
Mr. Le Van Binh, Deputy Director of the Land Division (Ministry of Pure Assets and Atmosphere), mentioned that actual property initiatives (housing, resort actual property) don’t apply land tariffs however apply particular plans. to calculate. The land worth checklist is especially to gather monetary obligations of particular person households and in circumstances of annual land rental initiatives; Different circumstances are auctions and bidding.
Relating to the fee to alter the aim of land to residential land, Mr. Binh assessed that in Hanoi, it’s needed to alter the aim of agricultural land in a residential space, or agricultural land hooked up to a plot of land with residential land to residential land now. very equal. Previously, shifting was very tough as a result of the worth for individuals to transform was solely half the worth of residential land.
“Now we do it pretty in line with the worth checklist. When transferring land in a residential space, the worth checklist for residential land in a residential space will apply. This value is calculated in line with the worth checklist with none restrictions. Many homes have utilized for conversion, however once they obtain discover that they need to pay 2 billion in land use charges, individuals will understand that they could request much less conversion. Individuals can see that they’ve to economize and convert in line with their wants to maneuver 50m2 as an alternative of 200m2,” Mr. Binh mentioned.
Additionally in line with the Deputy Director of the Land Division, the land worth checklist approaching the market worth is a good sport, with no distinction between the 2 costs. Market actors settle for a degree enjoying subject, land costs are not discrepant so that folks can see that household land transformed to residential land and resold on the general public market will not be price a lot, so regularly it would saturation.
“Since it is a sport, all elements should be equal. Low land costs are helpful for this, however it would trigger a loss to the state funds, affecting these whose land is recovered as a result of compensation and resettlement help should not satisfactory. The land worth checklist is near the market worth. Even when the State recovers it at hand it over to actual property companies, the individuals may also be prepared to permit it to be recovered. Like a earlier venture that took 5-7 years to finish compensation, now it may be accomplished in 1-2 years. From there, companies save time and prices,” Mr. Binh mentioned and mentioned that land costs will regularly stabilize.
Assessing Hanoi’s new land worth checklist, in line with consultants from Savills Vietnam, the affect on actual property costs is insignificant but additionally helps cut back the pace of the speculative wave, individuals obtain compensation near the true worth. worldwide…
Ms. Nguyen Thi Hong Van, Deputy Director of Savills Hanoi’s valuation and monetary consulting division, recommends that traders engaged in speculative shopping for and reselling actions at the moment should take into account extra fastidiously, as the speed of enhance will increase. The value of actual property should be sufficiently greater than the price of capital, the price of utilizing monetary leverage in addition to the price of revenue tax from actual property switch calculated on the brand new land worth checklist nearer to the market.
Scale back tax and charge charges, don’t cut back land costs
In response to issues that the adjusted worth checklist will probably be greater than earlier than, it would result in a rise in land taxes and charges. Within the report on adjusting the land worth checklist, the Hanoi Division of Pure Assets and Atmosphere affirmed that the land worth checklist has elevated. Step by step approaching the market worth is a requirement that should be applied in line with the provisions of the Regulation.
In circumstances the place taxes and land charges are excessive and inconsistent with individuals’s revenue, the administration company believes that it’s essential to analysis to cut back tax and charge charges, not cut back land costs.
