Changes needed to evaluate land prices

Source: Pano feed

HA NOI (VNS)— A workshop on land management was held yesterday to discuss current limitations affecting land valuations, including the shortage of mechanisms to develop, update and adjust State land pricing.

The workshop was a joint effort by the Ministry of Natural Resources and Environment’s Land Management Administration and Sweden’s Cadastral and Land Registry

Head of the Department for Economic and Land Fund Development Bui Ngoc Tuan spoke to participants at the meeting.

“This leads to the fact that land prices that are usually used for compensation and relocation cannot keep up with market moves,” he said, noting that in many localities, land prices regulated in the State’s framework accounted for only 20 per cent of the prices in market.

Some local governments were also under-valuing land to provide an incentive to investors, he said.

Tuan also complained about the lack of professional land valuing agencies due to the current framework which saw prices determined by Government agencies.

Duong Dai Ton, from Ha Noi’s Department of Natural Resources and Environment, said the price of suburban land surrounding major cities like Ha Noi and HCM City also needed adjustment.

He said under the State’s price framework, each square metre in areas surrounding Ha Noi was worth about VND2.5 million, when its market price was to ten times higher.

Under the Land Law adopted in 2003, it was intended that State-regulated pricing would gradually resemble market prices in order to improve allocation and improve socio-economic development.

In reality, market prices have streaked ahead of the State’s price framework, which was only adjusted in 2007.

Improper compensation has caused delays in land clearance and a bottleneck in construction projects.

Director General of the Debt and Asset Trading Corporation Dinh Quang Vu said the State’s price framework mostly served Government agencies and tax collection.

“A land price framework should be designed to match the different purposes of land use,” he said, urging that the gap between regulated prices and market prices should be narrowed.

Regulated prices were only 20-50 per cent of market valuations, he said.

By comparison, Swedish expert Olov Farmlvist, says that the massive land evaluations and government oversight in Sweden means that price frameworks are only updated every three years. As a result, State-regulated prices were only 70 per cent of market prices.

Participants at the workshop called for a State land-price framework that incorporates important criteria, including land use, time of usage and the market price of the land.

They also urged for a price adjustment of 20 per cent in 50 provinces and cities. — VNS

Đăng ký: VietNam News