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Land valuation and land price list: new mechanism ensures publicity and transparency
Land price is always a hot issue in legal relations on land, because it directly determines the financial obligations of enterprises, compensation rights of people and State budget revenue. The Draft Resolution on Regulations on a number of mechanisms and policies to remove difficulties and obstacles in the organization of implementation of the Land Law has introduced a number of new mechanisms to ensure publicity, transparency and more practicality in land valuation.
1. Land valuation principles
According to the new regulations, land valuation must comply with market principles, meaning that the determined land price must closely reflect the actual transaction value on the market. This is an important change compared to the previous mechanism, which was often assessed as slow to update, causing land prices in the State price list to be much lower than the actual transaction price. Applying market principles not only contributes to ensuring the rights of people whose land is recovered through more reasonable compensation levels, but also helps businesses have a basis for accurately forecasting investment costs, while increasing State budget revenue by limiting land revenue losses.
In addition, the valuation process must be conducted honestly, objectively, publicly and transparently, especially as the new regulations require separation between the land price decision-making agency and the land price determination consultancy unit. This is the key point to prevent conflicts of interest, eliminate the risk of domination and subjective intervention in valuation results, which has long been the cause of the “ask – give” situation in land management. When this mechanism is applied correctly, valuation results will be more convincing, reduce complaints and create a foundation for the real estate market to operate more transparently and stably.
2. Land price list and adjustment coefficient
According to the draft, the land price list will be developed in detail for each type of land, specific area and location, and will be announced periodically every 5 years, starting from January 1, 2026. Notably, in localities that have completed the digital cadastral map system and land price database, the price list will be specified in detail for each plot of land. This is an important step in modernizing land management, making land price information more transparent and accessible for both management agencies, businesses and people.
In addition, the provincial People’s Committee is empowered to issue annual land price adjustment coefficients. In case of strong market fluctuations or differences between regions, the provincial People’s Committee can adjust within the year or apply separate coefficients for each specific locality. This mechanism aims to create flexibility, helping the State-regulated land price not to be “framed” for 5 years, but to reflect actual fluctuations more promptly.
The addition of the adjustment coefficient mechanism also completely overcomes the limitations of the previous regulation, when the 5-year fixed land price list is often outdated compared to market developments. To ensure accuracy, the draft also stipulates that input information for the construction of the price list and adjustment coefficient must be formed within the last 24 months. This helps the valuation data to always be updated, closely reflecting the actual transaction value, thereby contributing to improving fairness in compensation when reclaiming land, as well as transparency in the financial obligations of enterprises.
3. Practical significance
For businesses, this mechanism helps to forecast land use costs and financial obligations more accurately. For people, when their land is recovered, compensation based on the land price list and adjustment coefficient will reflect closer to the real value, limiting the situation of complaints due to low compensation. For the State, this transparent mechanism contributes to enhancing trust and limiting budget losses.
Conclusion: The new regulations on land valuation and land price list are an important step towards a more transparent and fair real estate market. However, to effectively implement, people and businesses need to proactively grasp information and be ready to consult legal advice in complex situations.
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The above are the basic contents of land valuation and land price list: the new mechanism ensures publicity and transparency based on the provisions of law at the time of writing the article. If you need advice on the above issue or are interested in other legal services, please contact LS Law Firm immediately via Email: lslawfirm2014@gmail.com for timely support.
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