In 2023, the Department of Natural Resources and Environment of Ho Chi Minh City issued 22,140 pink books to home buyers in projects in the area. However, there are still nearly 59,000 remaining houses and the Ho Chi Minh City Department of Natural Resources and Environment has divided them into 6 groups of problems to solve. Of these, the top priority is waiting to determine financial obligations, then reviewing problems with legal procedures, implementing additional financial obligations, investors being late in submitting documents, and problems with the type of real estate. new and other problems.
The Lexington Residence project (in Thu Duc City) is also on the list of 39 projects facing problems and requiring additional financial obligations. This apartment complex is stuck on public land (part of the project) assigned to the investor by the Ho Chi Minh City People’s Committee, but the conclusion of the Government Inspectorate requires land use rights to be auctioned. Recently, a Lexington Residence resident sued the Ho Chi Minh City Land Registration Office when this unit refused to issue a pink book for the apartment they bought from the apartment investor.
In Ho Chi Minh City, there are currently hundreds of real estate projects that have had to stop being implemented for many years just because they cannot pay land use fees, even though the investor really wants to fulfill their financial obligations. According to data from the Ho Chi Minh City Real Estate Association (HoREA), among more than 100 projects with legal problems in Ho Chi Minh City today, problems in calculating land use fees account for a very large proportion.
“The key is there” but it takes implementation efforts to solve it
According to leaders of the Department of Natural Resources and Environment of Ho Chi Minh City, in recent times, determining land prices has been the most difficult task for the Department. The reason is that the Department’s human resources are not enough in both quantity and quality to undertake this work, whereas previously, it was the job of the Department of Finance. Not to mention, currently the calculation of additional land use fees is entangled, especially in planning adjustment projects. Regulations require payment at the time of adjustment, so consulting units are reluctant to participate because collecting information is difficult and appraisal documents are often returned many times.
Talking to Tien Phong, Mr. Le Hoang Chau, Chairman of HoREA said that to solve problems in calculating land use fees, on February 5, the Government issued Decree No. 12/2024/ND -CP amends and supplements a number of articles of Decree No. 44/2014/ND-CP regulating land prices and Decree No. 10/2023/ND-CP amends and supplements a number of articles of decrees guiding implementation implementing Land Law. Decree 12/2024/ND-CP has added information to apply the land valuation method. Accordingly, information on land price, land rental price, ground rental price is used to apply the comparison method, surplus method and build a land price adjustment coefficient to calculate land use fees.
“We can see the Government’s determination to remove difficulties in calculating land use fees when the Decree is issued close to the Lunar New Year and takes effect from the date of signing. However, localities must also make efforts and perform public duties responsibly to solve the problem,” Mr. Chau said.
