Originally published 26 January 2010
Keywords: land prices, Ho Chi Minh City, land use rights
Summary
The People's Committee of Ho Chi Minh City ("HCM City") promulgated a Decision No. 102/2009/QD-UBND dated 24 December 2009 on land prices applicable in the locality of HCM City ("Decision 102").
Full Update
Decision 102 reaffirms the use of land prices and provides the list of prices of residential lands located in every street in HCM City and methods to calculate prices of the other types of lands. Decision 102 officially takes effect from 1 January 2010 and replaces Decision 89/2008/QD-UBND dated 20 December 2008.
The Use of Land Prices
The land prices serve as the basis for calculation of the following fees/amounts:
- Taxes for land use and land use right transfer
- Land use fees and land rent for allocation or leasing of land
- Value of land use rights
- Registration fees for assignment of land use rights
- Compensation when the State recovers land for use for objectives of national defence and security, national interest or public interest and economic development
- Compensation and penalty payable by persons in breach of the laws on land
The Price Framework for Types of Lands
Decision 102 provides the price framework of three types of lands: agricultural land, non-agricultural land and unused land.
- Agricultural Land
Agricultural land is divided into five categories: land for planting annual crops, land for perennial crops, land for aquaculture, land for salt production and forest land for production. Decision 102 constructs five price tables corresponding to the five categories of lands. In the price table, the price of a land generally varies based on its zone and/or its location.
- Non-agricultural Land
Non-agricultural land is divided into residential land, land for production or business and other lands.
Residential land consists of lands adjoining to streets (frontage) and land not adjoining to streets (in a lane). Decision 102 includes a list of price of residential lands adjoining to every street in HCM City. Further, the list provides a basis for calculating prices of residential land in a lane based on identified criteria.
The price of land for production or business is equal to 60 percent of the price of residential land which it adjoins.
Lastly, the prices of other lands are decided based on the prices of their adjoining lands.
- Unused Land
For unused land of which the use purpose has not been decided, its price is calculated based on the prices of its adjoining land.
For unused land of which the use purpose has been decided, its price is calculated based on the price of the land with the similar use purpose.
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