Accordingly, Report No.302/BC-HDTDBGD, signed by Chairman Phan Van Mai of the HCMC People's Committee cum Chairman of the city’s Land Price Appraisal Council (LPAC), states that the LPAC agreed with the proposal of the HCMC Department of Natural Resources and Environment (DONRE) in its Official Proposal No.10487 dated October 14, 2024, as well as the opinions of the LPAC's working group and the draft decision to amend and supplement Decision No.02/2020/QD-UNBND.
The LPAC also assigned DONRE to complete the necessary procedures and submit them to the municipal People's Committee for consideration and decision.
According to the LPAC, in previous proposals, DONRE had used agricultural land prices to calculate compensation in HCMC, which did not fully reflect the pure agricultural land prices for cultivation and production.
In this latest proposal, DONRE has developed a land price list for agricultural land based on the agricultural land prices stipulated in Decision No. 02/2020/QD-UBND, multiplied by a land price adjustment coefficient (coefficient K) as per Decision No.56/2023, to ensure stability for agricultural production, which is appropriate.
This will not affect cases where the state reclaims land, as the reclaimed land will be assessed at a specific market price for compensation.
DONRE has also developed a land price list for agricultural land in high-tech agricultural zones, maintaining the current collection level, which is considered appropriate.
For residential land, DONRE has collected land price data from the price database and market transaction prices, and based on the actual socio-economic conditions of HCMC, before proposing a land price list for residential land suitable for each district and Thu Duc City. The department has also reviewed and balanced the price levels for areas bordering different districts, Thu Duc City, and along the roads and routes in each locality.
For commercial and service land, DONRE has developed a land price list based on an assessment of the socio-economic development characteristics of each area, proposing a suitable price for each specific location.
Similarly, for non-agricultural production and business land (excluding commercial and service land), DONRE has assessed the socio-economic development characteristics of each area to propose appropriate land prices for non-agricultural production and business land, which is appropriate.
Based on this, DONRE has proposed appropriate land prices for non-agricultural production and business land with specific characteristics (industrial zones, export processing zones, Quang Trung Software City, mineral industrial clusters), land used for national defense and security purposes, and land used for public purposes.
The LPAC has assessed that compared to previous draft decisions and proposals, the new one submitted by DONRE, which includes additional land prices for agricultural land, commercial and service land, and non-agricultural production and business land (excluding commercial and service land), ensures a balance between the interests of land users and investors.
Regarding the land use term, based on Clause 3 of Article 12 in Decree No. 71/2024/ND-CP, the land price in the land price list for land with a limited use term is calculated corresponding to the land use term of 70 years.
However, agricultural land granted to households and individuals within the agricultural land allocation limit is not based on the land use term. DONRE has accepted and supplemented the regulations on land use terms in accordance with the above provisions.
It is noteworthy that in Official Proposal No. 10487 dated October 14, 2024, DONRE suggested that for agricultural land, the highest land price on Nguyen Hue, Le Loi, and Dong Khoi streets (District 1) is up to VND 687.2 million/m2 (US$27,400). Agricultural land is divided into 3 zones and 3 locations, with prices increasing by 2.5 to 2.7 times depending on each location and zone.
