Remove the land price bracket, determine the market price

06/27/2022

This is one of the important contents in Resolution 18-NQ/TW on “Continuing to renovate and perfect institutions and policies, improve the effectiveness and efficiency of land management and use, and create motivation for Our country has become a high-income developed country.
Resolution 18 of the Central Committee continues to emphasize the point that land belongs to the entire people, and the state is the representative of the owner and unified management.

Land use rights are a special type of property and goods but are not ownership rights; land use rights and land-attached assets are protected by law.

Resolution 18 also emphasizes that the State does not recognize the reclaiming of land that has been allocated by the State to others for use in the process of implementing policies and laws on land; do not adjust agricultural land allocated to households and individuals.

The resolution sets a target that by 2023, amendments to the 2013 Land Law and a number of related laws must be completed, ensuring uniformity and consistency.

Resolution 18 also states that the current financial policy in the land sector has not really encouraged economical, efficient and sustainable land use. The methods of valuation and auction of land use rights are still inadequate and not consistent with reality.

The determined land price is usually much lower than the market price of land. It is not possible to thoroughly handle the situation of land price difference in bordering localities, nor has there been a sanction to handle violations in land price determination and land use right auction.

In order to improve the land price determination mechanism in the coming period, Resolution 18 sets out a remarkable solution that is to remove the land price bracket but continue to use the land price list mechanism.

Specifically, there are mechanisms and methods to determine land prices according to market principles.

At the same time, stipulate the functions, tasks and responsibilities of the agency in charge of determining land prices. In which, the Central Government sets up criteria and procedures for checking and supervising localities in building land price lists. Provincial-level People's Councils decide, inspect and supervise the implementation of land prices.

In addition, Resolution 18 also requires a mechanism to improve the quality of land valuation, ensure the independence of the land price appraisal council, the capacity of the consulting organization to determine the land price, the capacity and Ethics of appraisers.

In addition, supplement and complete regulations to ensure publicity and transparency such as: Publicizing land prices, forcing transactions through trading floors, paying via banks, not using cash; strictly handle violations...

The land price bracket is the Government's regulations that determine the minimum to maximum land price for each specific type of land.

The land price bracket is the basis for the provincial People's Committee as a basis for building and announcing the land price list in each locality to be applied to collect land use levy, land rent, calculate property value when allocating land, and land use tax. land use and land use right transfer tax...

Currently, the land price bracket is applied according to the provisions of Decree 96/2019/ND-CP.

Referring to the story of land fever during the past time, real estate experts pointed out the fact that after the land price fever, a new land price level has been established, but the land price list is still flat. While the new land price list takes effect from 2020, as in Hanoi, the maximum urban land price in the inner city of Hoan Kiem district (Hang Ngang, Hang Dao, Le Thai To streets) is nearly 188 million VND. /m2, the reality of the current market shows that it is very difficult to find a house of 2 billion in Hanoi. The newly issued land price list has become outdated with the market.

According to Mr. Le Hoang Chau - Chairman of Ho Chi Minh City Real Estate Association (HoREA), the latest land price list in localities is valid for 5 years from 2020-2024. However, the land price list is bound by the regulations on the price list price bracket, so the principle that the land price is in line with the market price cannot be implemented because it is limited by the above framework. The price list does not escape that mechanism.

In fact, the locality is allowed to adjust annually by the K coefficient, but according to Mr. Chau, the coefficient applied according to the land price list does not meet the needs of the people.

As in Ho Chi Minh City, in 2021, only after about 1 month, the land price adjustment coefficient will be issued to prepare compensation, support and resettlement plans to consult people whose land has been recovered. But when applying that decision, the people did not agree, so the city had to consider and propose to increase the adjustment coefficient of agricultural land prices, showing that the land price bracket and land price list are too outdated and not suitable for the local population. market mechanism.

Many people think that the removal of the land price bracket as determined by Resolution No. 18 is completely reasonable. When the land price bracket is removed, the remaining issue is through the land price list and the Central Government will still manage the establishment and establishment of the local land price list through the inspection and supervision process.

By VietNamNet

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