WHEN WILL THE NEW LAND PRICE LIST TAKE EFFECT?

“When will the new land price list take effect?” has become a highly searched question amid major changes in land policies, directly affecting taxes, compensation, real estate transactions and property valuation. Not only individuals and investors, but also businesses and banks need to clearly understand the effective date, principles for establishing and proper legal application of the new land price list. The following article provides a comprehensive, authoritative and updated analysis to help you proactively prepare for these changes.

What is the land price list and why does it need to change?

The land price list is a pricing framework issued by the provincial-level People’s Committee and used as a basis for calculating taxes, fees, land use levies, land rents, compensation when the State acquires land and various other financial obligations. For many years, land prices in numerous localities have been significantly lower than market prices, creating a substantial gap between actual transaction prices and taxable values, resulting in lost state revenue and market distortions.

The changes to the land price list stem from the need to improve market transparency, bring official land prices closer to actual transaction prices and ensure consistency with related laws such as the land law, housing law and law on real estate business. The new land price list is not merely a set of figures, but also a market regulation tool that directly affects the rights and interests of individuals, investors and businesses.

Therefore, the question of “when the new land price list takes effect” has become a major concern, because even a difference in the effective date can completely change an asset’s value, financial obligations and the validity of legal documents.

When will the new land price list take effect under the law?

Under the current land legislation, the land price list is developed and issued according to the cycle prescribed by the State and may be adjusted when there are significant fluctuations in commonly prevailing land prices in the market. The new land price list takes effect from the date on which the decision issued by the provincial-level People’s Committee comes into force.

It is important to understand that:

• The new land price list does not apply retroactively to financial obligations that were legally incurred before its effective date.

• Applications submitted before the effective date but processed afterward may be affected if the financial obligations have not yet been fully completed.

• Certain specific cases, such as compensation, auctions and the determination of specific land prices, are not based solely on the land price list but may also require market-based valuation through independent valuation services.

Therefore, accurately identifying the effective date of the new land price list in each locality is a decisive factor in determining financial interests, particularly for applications involving property transfers, bank financing, equitization and land clearance.

How does the new land price list affect individuals and businesses?

The implementation of the new land price list brings a wide range of practical impacts. For individuals, higher land prices mean higher land use levies, taxes and registration fees, but may also increase compensation for land acquisition when the new prices are applied at the appropriate time.

For businesses, particularly real estate companies, the new land price list directly affects:

• Project input costs

• The value of collateral when obtaining bank loans

• Business valuation in M&A transactions and equitization

• Land rental costs and land lease extensions

Many businesses face significant risks when assets are valued based on the old land price list while financial obligations are calculated according to the new land price list, resulting in discrepancies, disputes, or adjustments by regulatory authorities.

Therefore, independent land valuation based on market prices becomes an essential solution, not only to ensure legal compliance but also to protect financial interests.

Cases requiring special attention when applying the new land price list

Not every transaction simply requires the application of either the old or new land price list. Special attention should be paid to cases such as:

• Applications for changing land use purposes that are still being processed

• Projects where land has been allocated or leased but financial obligations have not yet been fully determined

• Assets used as bank collateral or revalued after the new land price list takes effect

• Compensation, support and resettlement when the State acquires land

In these cases, the land price list serves only as a reference basis. Competent authorities may require a land valuation certificate based on market value to determine the actual value, prevent losses and minimize disputes or complaints.

Misunderstanding the effective date of the new land price list may cause individuals and businesses to suffer losses amounting to billions of Vietnamese dong, simply due to the lack of professional valuation.

Indochina International Appraisal – A professional land valuation solution under the new land price list

In the context of continuous adjustments and implementation of new land price lists, Indochina International Investment & Appraisal JSC (SunValue) provides professional support to help clients accurately determine the appropriate land value in accordance with both legal requirements and market conditions.

With more than 20 years of experience in valuation, Indochina International Appraisal does not rely solely on locally issued land price lists. Instead, the company conducts in-depth analysis of actual transaction data, location, planning, land use purposes and market trends to issue valuation certificates with strong legal validity, recognized by banks, government agencies and business partners.

Indochina International Appraisals land valuation services are particularly suitable for:

• Applying the new land price list to calculate taxes and land use levies

• Bank financing and revaluation of collateral

• Compensation and land clearance

• M&A transactions and equitization of businesses with large land holdings

Valuing at the right time – using the right method – complying with the right regulations is the key to helping clients optimize costs, minimize risks and increase asset value when the land price list changes. Contact Indochina International Appraisal today for advice on an optimal valuation solution that complies with regulations and helps control costs.

Indochina International Investment & Appraisal JSC (SunValue) 

• Address: Indochina International Appraisal System 

• Hotline/Zalo: 081 519 8877 

• Email: contact@sunvalue.vn 

• Facebook: Indochina International Investment & Appraisal 

• Website: inavn.vn

What should individuals do when the new land price list takes effect?

When the new land price list comes into effect, individuals and businesses should proactively:

• Check the effective date applicable in their locality

• Review ongoing land-related applications and documents

• Compare the official land price list with actual market prices

• Obtain an independent valuation before making major financial decisions

In particular, you should not rely solely on the land price list to assess an asset’s value, because the land price list does not fully reflect actual transaction values, especially in areas experiencing significant market fluctuations.

Having a professional land valuation certificate helps you negotiate proactively, maintain transparent documentation and minimize legal risks when the new land price list takes effect.

Conclusion

Understanding when the new land price list takes effect not only helps ensure compliance with regulations but also directly protects your financial interests in land-related transactions. In a context where policies are continuously changing, combining the land price list with independent, legally compliant land valuation is one of the safest and most effective approaches. Proactively staying informed and obtaining an accurate valuation at the right time is a major advantage in today’s increasingly volatile market.