HN proposes 15% increase in land prices in 2020-2024


VGP – The Ha Noi municipal People’s Committee has recently agreed with a proposal of the Ha Noi People’s Council on a 15% increase in the average price of all types of land in the next five years. 

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Earlier, the Ha Noi municipal People's Committee proposed a 30% increase in the average price of all types of land after collecting comments on the issuance of land prices in the city by January 1, 2020 to December 31, 2024. 

 In particular, the price of urban land is expected to be VND 200 million per m2, applied to some areas of Hoan Kiem district such as Hang Ngang, Hang Dao and Le Thai To streets (the price applied from January 1, 2015 to December 31, 2019 is VND 162 million per m2). The lowest price is in Ha Dong district with over VND 4.5 million per m2.

According to the People’s Committee, the adjustment of extremely high land prices would indirectly affect the real estate market and the site clearance work. 

The People’s Council expected that the 15% increase in land prices would catch up with practical requirements; reduce the gap with the market; contribute to establishing a synchronous policy mechanism in land management; and harmonize the interests of the state, people and businesses.

According to a report of the Ha Noi Department of Tax, the amount of tax collection from non-agricultural land in 2019 was estimated at VND 369 billion. Accordingly, with the 15% increase in land prices, the amount of tax collection would increase by VND 57 billion for 1.3 million households with nearly VND 45,000 each. 

According to a survey by market research companies, house prices in Ha Noi in recent months have increased significantly, with an increase of 3-5% in Cau Giay and Dong Da districts. In four central districts, the price increase is around 2-3%. In contrast, the neighboring districts and districts have larger amplitudes, even some increase by 10% to 30% after only a year such as Dong Anh, HoaiDuc and Long Bien./.

By Kim Anh