LAND PRICE FRAMEWORK: MAJOR CHANGES AND PRACTICAL IMPACTS

The land price framework was once considered a “milestone” for the Government to manage land values. However, from 2025, this mechanism will be abolished and replaced by annual land price tables. This change not only transforms the management approach but also significantly impacts citizens, businesses, and the real estate market in general. In the context where market land values often fluctuate much faster than state-regulated prices, the demand for professional land valuation services has become more urgent than ever. The article below will provide a detailed analysis of the land price framework while suggesting safe and accurate solutions.

What is the land price framework? Why is it being abolished?

The land price framework is a pricing range periodically issued by the Government as the basis for local authorities to develop land price tables. However, in reality over many years, these prices have often been far lower than market prices, leading to numerous shortcomings: citizens were not fairly compensated when land was reclaimed, businesses faced difficulties in transactions, and banks lacked a reliable basis for lending valuations.

Therefore, from 2025, the land price framework will officially be abolished and replaced by annual land price tables established by each locality. This new approach aims to ensure that land price tables are closer to market values, limiting the situation where “two land prices” exist simultaneously. This is a major turning point that creates greater transparency in management, but it also poses significant challenges for the Government, investors, and citizens as land prices may fluctuate frequently.

Annual land price tables – An important legal basis

After the abolition of the land price framework, annual land price tables issued by provincial and municipal People’s Committees will become the official legal basis for calculating taxes, fees, land-use charges, and compensation levels when the Government reclaims land. This helps reflect land values more accurately while reducing prolonged complaints and disputes.

However, land price tables are still standardized prices and cannot fully reflect fluctuations in each area and at each point in time. For example, land prices in areas where major infrastructure projects are about to be implemented may double within just a few months – something that land price tables may not keep up with. Therefore, citizens and businesses still need an objective and independent tool to determine actual values: professional land valuation services.

Impacts of abolishing the land price framework

The removal of the land price framework brings both positive and negative impacts. On the positive side, the new policy will help reduce the gap between state-regulated prices and market prices, creating greater transparency in real estate transactions. Investors can also plan finances more easily and avoid “circumvention” caused by excessive price differences.

However, this change also poses certain risks. Citizens may have to pay higher taxes or land-use fees if annual land price tables increase significantly. Businesses face fluctuating investment costs, making long-term forecasting more difficult. Meanwhile, banks and credit institutions require independent valuation reports to make safe lending decisions. All these factors make the role of land valuation more important than ever.

SunValue – Land valuation solutions after the abolition of the land price framework

The abolition of the land price framework from 2025 opens up many opportunities but also contains numerous challenges, especially when market land prices fluctuate rapidly and unpredictably. In this context, Indochina International Valuation (SunValue) becomes a trusted choice, providing optimal land valuation solutions for both individuals and businesses.

With more than 23 years of experience, SunValue provides land and real estate valuation services recognized by banks, credit institutions, and state management agencies, helping clients:

• Receive accurate, transparent, and objective valuation reports.

• Have a solid legal basis for loans, transfers, or investments.

• Determine reasonable compensation levels when land is reclaimed or land-use purposes are changed.

• Be supported by experienced appraisers with deep understanding of local markets.

Not limited to land valuation, SunValue has also developed a diverse service ecosystem:

• Real estate project valuation: Helping investors accurately assess potential and risks before investing.

• Collateral valuation: Meeting lending requirements with high reliability.

• Legal valuation services: Protecting rights in disputes, complaints, and land recovery cases.

• Tax-related valuation: Ensuring accurate value declarations and avoiding legal risks.

In particular, SunValue applies digital technology and AI combined with a nationwide land price database system to deliver fast, accurate, and cost-effective results. As a result, clients can confidently make safe and effective financial decisions, even in a constantly changing market.

Contact SunValue today to receive accurate, transparent, and market-based land valuation reports:

Indochina International Appraisal & Investment JSC (SunValue)

• Address: 15 Nguyen Luong Bang, Tan My Ward, Ho Chi Minh City

• Phone: 081 519 8877

• Email: contact@sunvalue.vn

• Facebook: Indochina International Appraisal And Investment J.S.C

• Website: inavn.vn

Conclusion

The abolition of the land price framework is an important step forward in land management, but it also creates many challenges as market values are constantly fluctuating unpredictably. In this context, land valuation services become an indispensable tool to ensure benefits and reduce risks for citizens and businesses. With its reputation and more than 23 years of experience, Indochina International Valuation is a trusted choice that helps clients stay confident amid all market fluctuations and make correct, safe, and transparent decisions.