According to the Ministry of Agriculture and Environment (MAE), many localities will soon issue new land price tables, with significant price adjustments.

Pham Duc Toan, CEO of EZ Property, told VietNamNet that the Ministry’s warning about upcoming significant land price changes is reasonable as this is in line with current conditions. 

Toan noted that at the working sessions with local authorities, they all affirmed that adjusting official land prices upward is a must in the context of actual high market prices. If not, this will lead to a bigger difference between official and market land prices.

“The land price tables issued by localities differ greatly from market prices, sometimes by tens of times. This is unrealistic and complicates land clearance and land recovery. Aligning land price tables with market values is an inevitable trend,” Toan said.

However, Toan warned that land price increases won’t be good news for real estate developers, because they will have to pay higher compensation to get cleared land, which leads to higher project development costs.

This not only drives up housing prices but also reduces the attractiveness of investment in some localities.

“Higher land prices will benefit citizens through higher compensation, but those looking to buy homes must accept higher prices. While we aim to reduce housing costs, rising land taxes make this challenging,” Toan said.

Nguyen Quang Huy, of the Faculty of Finance and Banking Dean of Nguyen Trai University, also said many localities will soon issue new land price tables based on market values. This is a major, transformative policy impacting the real estate market, citizens, businesses, the state budget, and the nation’s sustainable development.

Huy pointed out that the gap between “state-announced land prices” and “market prices” has widened over the years, leading to state budget losses and unfairness in compensation, transactions, and asset valuation for citizens and businesses.

“Developing land price tables aligned with market values is not just a technical measure; it’s an effort toward fairness, transparency, and equality for all societal components. It affirms that land is a special resource and a shared asset that must be used efficiently, transparently, and equitably. However, this will have multidimensional impacts and requires humane and careful regulation,” Huy said.

He said that many citizens may worry about increased costs for transfers, taxes, and fees. However, if the new land price tables reflect true values, citizens will benefit more from land acquisitions or when mortgaging and valuing assets. 

The key lies in implementation: with a clear roadmap and reasonable support, citizens will understand and support the policy.

For real estate businesses, concerns arise about rising input costs. Huy believes that transparent land pricing will reduce legal risks, shorten negotiation times, and facilitate legal land access.

“Adjusting land price tables may create bottlenecks in the short term that need addressing. But it’s an opportunity to reshape the real estate market toward transparency, efficiency, and health in the long term, addressing price bubbles and hidden inequalities,” Huy said.

How to adjust land prices to avoid shocks?

Toan of EZ Property suggested that when adjusting land prices and increasing taxes, authorities must carefully balance benefits and negative impacts.

“Adjustments can be made, but sudden spikes that shock investors should be avoided. Land price tables are just one factor in calculating land use fees. Each locality has unique characteristics and strengths, so it is necessary to consider real situation to set prices,” he said. 

“Flexible classification is needed. For instance, in areas prioritized for industrial production, calculations should consider the actual amounts businesses pay rather than just land price tables,” Toan added.

Meanwhile, Nguyen Quang Huy suggested that to avoid a “shock” to society, adjustments should be humane, flexible, and well-considered.

“A roadmap should be tailored by region, land type, and urbanization level. Uniform and rigid application should be avoided. Adjustments should be prioritized in developed markets with sufficient data, while gradual increases should apply in rural or remote areas to ensure livelihoods and smooth transitions,” Huy said.

Additionally, Huy emphasized the need for an open, real-time land price database integrated from multiple sources: taxes, banks, and trading platforms. Transparent information will make citizens feel respected and willing to cooperate with policies. “Small businesses, low-income citizens, and disadvantaged areas should benefit from transparent tax deferrals or exemptions.

Hong Khanh