Da Nang land price is expected to increase by 20% on average over the next 5 years

Expected Da Nang land price will increase about 20%

The People’s Committee of Da Nang City has just submitted the Statement 8046 / TTr-UBND proposing the City People’s Council at the end of 2019 (expected to take place from December 10 to 12) to consider promulgating the price list of land types in the city of Da Nang. Danang period 2020 – 2024.

According to the draft, the price list of land types in the area in the next 5 years will have an average increase rate compared to the current land price list of 15-20% (depending on the district and the location of the land lot).

According to this newly submitted land price list, the fluctuation between market land price and the land price of the same type in the current land price list in districts, particularly in central Hai Chau district increases from 15-23%; Thanh Khe district increases from 22-25%; Son Tra district increased by 12-19%; Ngu Hanh Son district increased by 12-26%; …

In particular, the highest land price is Bach Dang street (the section from Le Duan to Nguyen Van Linh) of more than 196 million VND / m2, doubling compared to the land price of this section in 2019 at only nearly 99 million VND / m2.

Some main roads in the center of Da Nang city have high land prices such as Road 2-9 (the section from Cham Museum to Nguyen Van Troi) of 148 million VND / m2, the rest from 58-120 million VND / m2; Ho Nghinh road (the section from Vo Van Kiet to Morrision) has a land price of 156.4 million dong / m2; Hung Vuong street in the center of the city has a land price of 161-169 million dong / m2; Le Duan street from 120-171 million dong / m2; Tran Phu street has a land price of VND 153-196 million / m2; Nguyen Van Linh street has a land price of 111-185 million dong / m2; Pham Van Dong street connecting the Han River bridge to the sea has a land price of 162.8 million dong / m2; …

Through checking the draft land price list in 2020 with a total of 20 roads, the road section exceeds the frame of VND 151 million / m2, this is the highest residential land price in the urban area according to the Government’s land price bracket, which stipulates land prices in Da Danang.

According to the Department of Natural Resources and Environment of Da Nang City, the construction of this land price list does not affect economic organizations renting land annually paid in the period of 2017 – 2022, 2018 – 2023 (in this period, the majority adjusted economic organizations); It only affects economic organizations in the stable cycle of 2020 – 2024, economic organizations are allowed to extend the land lease time (the land is worth less than VND 30 billion according to the land price list) and organizations. , The economy is slowly putting land into use.

In these cases, the land price is applied according to the land price at the land price table x (multiplied) the land price adjustment coefficient. Therefore, the construction of land price tables directly affects economic organizations. In case an economic organization has an extension of the land lease term and the land plot is valued at over VND 30 billion according to the land price list, it shall not be affected, because the land rent price is determined according to the market land price.

Regarding the impacts of this land price list construction on the investment environment and policies to attract investment of Da Nang, this Department said that the investor participated in the project through receiving transfer from house. For other investment, the land price is traded and negotiated between the buyer and the seller, so the land price in the land price list stipulated by the State does not affect the transfer, only affects the revenue of financial obligations. from the land itself.

In case the investor directly participates in the project (rather than receiving transfer from other investors), it must go through the auction of land use rights, which is determined as the specific land price. Therefore, the land price in the land price list set by the State does not affect the implementation of projects.

According to cafef

(Automatically translate Google)