The Government has just issued a decree amending and supplementing a number of articles on land prices, stating 4 valuation methods including comparison, income, surplus and adjustment coefficient.
On February 5, the Government issued a Decree amending and supplementing a number of articles on land prices. Four land valuation methods include:
Comparative method is done by adjusting the price of land plots with the same purpose of use, certain similarities with land plots that have been transferred on the market or won at land auctions that have fulfilled financial obligations. The way to do this is to analyze and compare factors that affect land prices after excluding the value of assets attached to land, to determine the price of the land plot.
The Government stipulates that the comparison method is applied when there are at least 3 plots of land with the same use purpose and have certain similar elements.
Income method is done by dividing the average annual net income per land area by the average interest rate on savings deposits in Vietnamese currency, with a term of 12 months at commercial banks. The condition is that these banks have more than 50% of charter capital or total voting shares held by the State. The average interest rate calculation period is 3 consecutive years, up to the end of the most recent quarter with data before the valuation time.
This method is for valuing land plots, agricultural and non-agricultural land areas that are not residential land but do not qualify to apply the comparison method.
A subdivision located in the entire Nam An Khanh urban area, with hundreds of villas and townhouses in an abandoned state, with unfinished infrastructure (Photo: Ha Phong).
Surplus method is to take the estimated total development revenue minus the total estimated development cost of the land plot or land area on the basis of the most effective land use (land use coefficient, construction density, number of floors). maximum of the project). This method is used to value a plot of land to carry out an investment project that does not qualify for comparison and income but can estimate the total development revenue and total development cost of the project.
Land price adjustment coefficient method is to take the land price in the land price list and multiply it by the adjustment coefficient. The adjustment coefficient is issued by the provinces and cities, through comparison with popular land prices on the market.
Compared to regulations from 2014, the Government has abandoned the land valuation deduction method to comply with the revised Land Law just passed by the National Assembly in mid-January.
The new Decree stipulates that the Provincial People’s Committee or District People’s Committee will decide the specific land price according to the provisions of the Law on Organization of Local Government. The natural resources and environment agency is responsible for helping the People’s Committee at the same level organize the determination of specific land prices.
