October 31 is the effective date of Decision No.79/2024 by the HCMC People’s Committee on amending and supplementing Decision 02/2020 about the land price list in HCMC.
Despite heavy rainfall, after 4:00 p.m. on October 31, the Land Registration Office of Thu Duc City remained inundated with citizens seeking to process land-related documentation. Nguyen Phi Hung, a real estate consultant, disclosed that throughout October 2024, he had successfully submitted six portfolios for clients in Thu Duc City, encompassing land use purpose modifications, pink book (certificate of land use right and ownership of assets attached to land), and land transfers.
Given the municipality's announcement regarding the implementation of new, elevated land pricing schedules effective October 31, 2024, he had expedited these submissions. His present visit merely involved collecting processed results.
The suburban districts of Cu Chi, Nha Be suddenly experienced a drop of land-related applications on October 31 compared to previous days, when state officials had had to work overtime to process documents. People who did come on the effective date of the new land price list still felt content even with higher land taxes and fees as they were attentively instructed to fulfill the procedures.
On the bright side, Tran Van Thoi, a resident within the Xuyen Tam Canal renovation project area in Binh Thanh District, expressed optimism that the new land pricing framework would ensure more equitable compensation for his family and other affected households, facilitating smoother relocation and resettlement processes.
“We are prepared to relocate to a new residence, provided the compensation is appropriate,” said Doan Thi Le Thuy from District 8 – representing the households affected by the North bank of Doi Canal infrastructure development and environmental improvement project. “While the ward has presented various resettlement options, due to the absence of available land reserves in District 8, we have opted for apartment-based resettlement. I just hope that the new place is not too far from here, because we have lived here for so long and have long-standing community ties.”
The HCMC Tax Department informed that Decision No.79 was released on October 21, 2024, leaving tax offices 10 days of preparation and training, along with propaganda task launching, in order to ensure no bottlenecks in administrative documentation processing.
By October 28, the HCMC Tax Department had issued a document guiding its sub-units and the management units of land-related revenues, as well as the IT unit of the municipal Tax Department to have a unified implementation when applying the new land price list according to Decision 79 to calculate land-related financial obligations, taxes, and fees.
From August 1, 2024, when determining financial obligations for households and individuals, authorities have eliminated distinctions between within-limit and beyond-limit land pricing. There is a discontinuation of considerations for land parcels valued above VND30 billion ($1.19 million), and abolishment of specific land pricing applications. The duration of land use rights for term-limited land categories has been extended from 50 to 70 years.
The HCMC Tax Department has also provided explicit guidelines regarding land use fees and rental policies, while instructing all units to thoroughly implement these unified protocols to ensure timely and legally compliant processing of land-related financial obligations.
The HCMC Department of Natural Resources and Environment has worked to minimize disparities between residential and agricultural land values during land price list development, supporting citizens' land use conversion needs.
To further mitigate impacts, the Government is preparing a decree on land use fee exemptions and reductions for specific cases, including household and individual land use purpose conversions. HCMC will contribute practical recommendations to this decree's development, aiming to balance citizens' rights and needs with the city's development goals.
Director Dinh Minh Tuan of the South branch of Batdongsan.com.vn commented that the final HCMC land price list is less dramatic than initial drafts. Prices are more reasonable across locations, with minimal impact on existing housing values. While primary market developers may face higher taxes and costs due to the price increase, the impact on secondary market investors and existing homes is expected to be limited.
The Ministry of Natural Resources and Environment has issued guidelines to ease the implementation of the 2024 Land Law's land price regulations.
According to Deputy Minister Le Minh Ngan, Clause 1 of Article 257 of the 2024 Land Law is a transitional provision, aimed at helping localities implement a gradual roadmap for building new land price lists according to the provisions of the 2024 Land Law to be applied from January 1, 2026, avoiding a sudden shock increase in land prices, affecting the rights and obligations of some land users.
Land price framework adjustments of provinces and cities must comply with Decree 71/2024 of the Government. When modifying land price lists for 2020-2024, localities must conduct thorough, cautious reviews and comprehensive impact assessments considering factors such as land values, zoning, positioning, and affected parties.
Enhanced public communication is essential to ensure consensus, while maintaining reasonable implementation schedules to prevent significant disparities between adjusted and current land price lists, thereby minimizing impact on citizens and enterprises.
