Construction and adjustment of land price to commensurate with the socio-economic development orientation

Over the period 2011-2019, Binh Duong paid attention to the construction and adjustment of land price lists in accordance with the law. The list of prescribed land prices is in line with the local socio-economic development orientation and reality, contributing to increasing budget revenue, creating social equity, ensuring the balance between the rights and obligations of land users, stabilize the real estate market, develop urban areas according to planning.

The Oasis in Thuan An city.

The market is stabilized

Since the Land Law 2013 took effect, Provincial People's Committee has issued 2 land price lists applicable for the period 2015-2019 and 2020-2024. However, due to the volatility of land prices, in period 2015-2019, Provincial People's Committee issued 3 replacement decisions in 2016, 2017 and 2019.

While setting up and adjusting the price list for different types of land, the province cooperated with neighboring provinces and cities to review land prices of each area, route, location to ensure the difference in land prices adjacent to borders does not exceed 30% as prescribed.

Tu Phuong Thang, Sub-Department of Land Management under Department of Natural Resources and Environment, said: The prescribed list of land prices is in line with the local socio-economic development orientation and reality, contributing to increasing budget revenue, creating social equity, ensuring the balance between the rights and obligations of land users, stabilize the real estate market, develop urban areas according to planning".

Currently, the price frame for land types regulated by the Government applied in the province is consistent with the local conditions, except that the price frame of agricultural lands is much lower than the common transfer price, especially agricultural lands in wards, townships and urban centers. About this issue, Mr. Tu added: “The reason is that Binh Duong is an industrially developing province, most agricultural lands are not used for agricultural production purposes but are located alternately in urban areas, residential areas, and are planned as housing areas and other land types”.

The above restriction has affected the construction of land price list and the determination of specific land prices. After the adjustments in land prices, the difference between agricultural and non-agricultural land prices is increasing compared to the actual market price. This causes difficulties to the process of determining specific land prices in compensation, support, resettlement and implementation of financial obligations on land for organizations having investment projects in the province. In addition, according to Article 14 of Decree No. 44/2014/ND-CP, when the marker land price increases/decreases by more than 20% compared to the maximum/minimum land price in the land price list, adjustments must be made, but there are no specific guidelines, making it difficult to implement.

To increase budget revenues

Mr. Tu said: "In recent years, the determination of specific land prices on the basis of surveying and collecting information on land plots, market land prices and land databases, appropriate land price methods has helped increase revenues of local State budget and harmoniously balance interests of the State, investors and land users". However, the capability of consultants is limited, leading to many price certificates have to be revised many times to meet the requirements. In addition, the province has no capable consultants or organizations to do the appraisal, leading to the signing of contracts, handover and adjustment of price certificates are often prolonged. On the other go, hiring outside consultants is restricted.

According to current regulations, the determination of financial obligations on land in some cases must comply with the market price mechanism, and is decided by Provincial People's Committee. An investor has not yet had a consultant to provide reference information to be able to calculate the financial capacity and suitability of the project. Hence, some investors received financial notices of land use and land lease with an amount that exceeded their financial capacity, so they had to cancel their projects.

Reported by Phuong Le - Translated by Ngoc Huynh

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