Ashui.com

The Ha Noi People's Committee has set a new land price framework for more than 1,100 streets in 29 districts and wards in the Capital.
 
The new prices will be applied as of January 1 this year to calculate tax on land use, land use right transfers and compensation in cases of land retreated by the government.

Within the new framework, maximum land prices will rise from VND67 million (US$3,600) per sq.m to VND81 million ($4,400) per sq.m, representing an increase of 21 per cent on last year. The lowest rate in the inner city will be set at VND1.8 million per sq.m.

Land prices on other streets and remaining areas in Ha Noi will be adjusted from the city centre outwards, with streets closest to the centre receiving the highest land rates. The city also set prices for land on 28 streets which have recently been named.

Notably, land prices in some areas of Ha Dong District were raised by 40 per cent. Other districts with fast urbanisation, such as Tu Liem, Gia Lam, Dong Anh, Thanh Tri, Hoai Duc and Dan Phuong, also had their prices raised to VND21.6 million per sq.m.

Prices of agriculture land will remain unchanged from 2009 levels. Non-agriculture land prices, by contrast, were raised to an upper limit of VND35.23 million per sq.m with a lower limit of VND1.1 million.

According to the committee's deputy chairman Vu Hong Khanh, it is necessary to adjust land prices this year because land use right transfer fees surged last year. The increase was also necessary as the State had invested in infrastructure to create favourable conditions for socio-economic development.

From Khanh's perspective, land prices should be changed to ensure increased budget revenue via land taxes. Bringing land prices in line with market prices would encourage more efficient implementation of investment projects.