HCMC discusses efficient land management

The government’s price caps on real-estate assets being too low compared to their marketed prices is one of the topics debated among governmental officials at the seminar on real-estate held by HCMC People’s Committee on November 22. 
A part of District 9, HCMC
A part of District 9, HCMC

The Government is preparing to issue a Decree on land price framework which would serve as the basis for land price listing between 2020 and 2025, Deputy Director of the General Department of Land Administration (GDLA) under Ministry of Natural Resources and Environment (MONRE) Dao Trung Chinh spoke at the seminar.

Despite authority’s intention to raise the official price cap for land, which is currently 30 percent of market prices, it would put financial strains on land owners trying to obtain legal documents for their usage and ownership. On the other hand, keep the price tags the same might not be encouraging for investors, Mr. Chinh said.

Reality has shown that the legitimate price caps must be at least 80 percent of the market price, said former Deputy Minister of Natural Resources and Environment Dang Hung Vo, who shared the same sentiment.

Current problems that HCMC need to resolve include the management of land zoning in association with allocation of business sectors to attract investors, and the proper development of infrastructures to match the speed of real-estate development.

Another matter was how to resolve administrative obstacles for businesses and investors, which was discussed at length by Vice Chairman of HCMC People’s Committee Vo Van Hoan.

He also directed attention towards the much conflicting zoning policies which he said are hindering investment projects within HCMC and in turn dragging down the city’s infrastructure developments.

As a result, city officials would amass business owners’ opinions in order to pinpoint problems at their core and propose solutions to the higher-ups.

As HCMC’s real-estate market is set at a higher price cap than those of other regions, it would need to be addressed individually and may be subjected to an annual increment of 5-7 percent, Hoan said. This would lead to changes in compensation policies and taxes, but can be adjusted to match citizens’ financial capacity and demands.