Deputy Prime Minister Le Van Thanh tasked the Ministry of Natural Resources and Environment, ministries and branches with researching and overcoming inadequacies in land valuation in Ho Chi Minh City to find solutions.
This application was made by the government leaders based on recommendations from the Ho Chi Minh City People’s Committee to solve difficulties and problems in determining land prices, calculating financial obligations for land, and providing compensation and assistance. when the state reclaims the land.
Earlier, in the proposal document to the Prime Minister, the Ho Chi Minh City People’s Committee asked the government to authorize the city to build and issue a coefficient for adjusting land prices according to reality and submit it to the People’s Council for approval.
From there, the city people’s committee will issue the land price adjustment coefficient to calculate the land use fee and land rent for the zones and lots, whether they are over or under VND30 billion. That is, there is no need to hire a consultant to determine the specific price of land according to the valuation method.
Current status of part of the northwestern metropolitan area of Ho Chi Minh City (Hoc Mon district, “suspended” for more than 20 years, April 2022. Photo: Quynh Tran
Currently, Decree 44/2014 provides 5 methods of land price valuation: direct comparison, deduction, income, surplus (where the land value calculated according to the land price list is VND 30 billion or more). and the land price adjustment coefficient when the land is under VND 30 billion.
Under the above 5 methods, the land valuation according to the land price adjustment coefficient as the basis for collecting land use fees and rents of Ho Chi Minh City is considered the full value of the land use rights of the assessed land, the following factors: affect the specific land price of the project.
The procedures for determining the unit price of land rent using the methods of direct comparison, deduction, income, surplus… increase unnecessary administrative procedures for investors and cause difficulties. in the rotation of records, the time to determine the price of land.
In addition, in the determination, evaluation and decision of land prices, it is still difficult to select a land price planning consulting entity to collect information on the actual transaction price of real estate in the market.
In addition, there are currently no quantitative requirements to adjust the difference between comparable properties and appraised properties, and specific guidance on forecast and volatility of transfer and rental prices and other factors. Factors that form revenues and project development costs.
These factors make it difficult for communities to set land prices, causing many projects to remain stuck in communities. At the 10th session of the National Assembly Standing Committee held last week, many members of the National Assembly Standing Committee were concerned about the number of projects being suspended as they commented on reporting to the government on austerity practices and tackling waste. in more and more towns.
Deputy Inspector General Doan Anh Tho commented that suspended projects are the current bottleneck, citing difficulties related to the onshore legal system and the guidance from the Ministry of Natural Resources and Environment. He said that many places had difficulty determining land prices and no one dared sign the land price plan.
“There are places that rely on audits to determine this, but auditors cannot make a judgment as to how close the property price is to market price and standard. The reason is the current methods for determining land prices. then the inputs are dynamic,” said Mr. Tho.
Therefore, according to the head of the state audit office, it is necessary to change the legal regulations and the guidelines for determining property prices, otherwise this would become a bottleneck. He also suggested that the ministries and offices deal with the problem of determining the land use plan, because there would be no standard if the path was still the same as it is today.