Businesses expressed many concerns about the current land pricing method, which still has many inadequacies. Many opinions say that it is necessary to calculate correctly and fully calculate reasonable costs to solve the problem of house price reduction.
At the seminar “Land valuation: Right and sufficient” organized by Thanh Nien newspaper this morning (14/6), leaders of many businesses and experts expressed their concerns and stated inadequacies in land pricing.
Mr. Le Hoang Chau – Chairman of the Ho Chi Minh City Real Estate Association (HoREA) – estimated that Ho Chi Minh City has more than 58,000 apartments that have not been granted a pink book. One of the reasons for this situation is the “blockage” of land pricing.
According to Mr. Chau, the Government’s Decree 44/2014 regulating land prices has stipulated land pricing methods. However, in fact, the criteria for implementing land valuation are entangled, mainly the surplus method, leading to a number of relevant officials and employees being entangled in the labor loop, and businesses are also entangled. Businesses want regulations to be easy to understand and do.
Mr. Tran Quoc Dung – Deputy General Director of Hung Thinh Corporation – said that one of the current problems is that land use levies account for a very significant component of the input price list to build real estate prices. When calculating the land fee too high, plus the costs of the business are not calculated enough, the cost of project development will be high. Since then, house prices have only increased, not decreased, despite many efforts of the parties.
Mr. Dung proposed that it is necessary to harmonize the interests of the State, people and businesses in the calculation of land use levy. Land use levy needs to be reasonably calculated to solve the problem of land prices in line with market prices.
Mr. Le Huu Nghia – General Director of Le Thanh Company – stated that land use levies and actual costs when enterprises develop land for projects are neglected in the draft Decree regulating land prices and guiding the implementation of the Land Law 2024 which is expected to take effect in early August.
According to Mr. Nghia, the land use levy to be paid is calculated by the total revenue minus the total cost and the normative profit. However, the State agency always wants the revenue at the largest level, the lowest cost to raise the land use levy to the highest. On the contrary, the business proves that the cost is valid and the revenue is appropriate, from which a contradiction arises.
In addition, Mr. Nghia also mentioned social housing, businesses find land and compensation on their own. That land is not included in the cost because social housing is provided by the State. After the enterprise compensates, the state will return the money to the enterprise. However, the pending compensation is not paid, lasting from year to year, causing damage to the investor.
Listening to opinions from experts and businesses, Mr. Nguyen Dac Nhan – Deputy Director of the Land Department, Ministry of Natural Resources and Environment – admitted that in the process of amending the Decree, although they have tried very hard, there are still many inadequate regulations.
For example, the process of calculating land prices is still confusing in choosing a valuation method. Along with that, the implementation force is also limited in both quantity and quality. Consulting units do not dare to do it because the database is weak, the human resources are thin… leading to the final result not being objective and honest.
According to Mr. Nhan, in the process of developing the Draft Decree regulating land prices and guiding the implementation of the 2024 Land Law, the Ministry of Natural Resources and Environment has accompanied ministries and branches such as the Ministry of Finance, the Ministry of Construction, etc. The general view is that we will try to absorb comments from businesses, experts, localities… in order to handle existing problems.
The land valuation method has been included in the law, specifically in which cases apply which method, what conditions… to help units no longer be embarrassed. Input data, quality, honesty, completeness… are also fully guided.
The representative of the Ministry of Natural Resources and Environment also emphasized that he is very concerned about the issue of land pricing. Because if the land price is not correct or enough, it will lead to great consequences for businesses, the state and the whole society. Therefore, this unit will continue to absorb comments to build an open and synchronous policy system.
