The Binh Duong People's Committee's announcement of the draft to get people's comments on the land price list after 2020 has attracted the attention of many investors, especially real estate businesses. Because according to the draft, the Price table in Binh Duong province will increase sharply, projected to increase at least 45% compared to the present.
Specifically, the city area. Thu Dau Mot will increase on average 50% compared to the current price list; Thuan An and Di An towns will increase on average 95% over the current level; Ben Cat and Tan Uyen towns will increase by 60% on average; Bau Bang and Bac Tan Uyen districts increased by 80% on average; Phu Giao and Dau Tieng districts increased on average 45% compared to the current price list.
Explaining the proposal to increase such a strong land price list, the Department of Natural Resources and Environment of Binh Duong province said that the land price in the province in the past time has certain fluctuations, as well as arising some more. inadequacies; the price list of some types of land and location is still not suitable to the actual situation of the locality due to the low price of agricultural land, especially for urban areas, residential areas and socio-economic areas. develop; Some new roads have just been invested in infrastructure, new names have not been added in the price list of land types ..., so it is necessary to consider adjusting and updating them accordingly.
“After comparing and analyzing, the Department of Natural Resources and Environment proposes to select a plan to adjust the land price in accordance with the prevailing land price in the market in accordance with the Land Law and its guiding documents. , which is an average increase of 70% compared to the current land price list and equal to an average of 80% compared to the common land price in the market, ”said Binh Duong Department of Natural Resources and Environment, adding. continue to overcome the inappropriate points discovered through the results of surveys, surveys of common transfer prices in the market and during the implementation and application of the land price list. Help increase the state budget revenue from land revenues such as land registration fee, real estate transfer income tax ... and avoid loss of state assets.
Talking to reporters of the Real Estate Investment Newspaper on this issue, Mr. Ngo Duc Son, Deputy General Director of DRH Holdings, said that with the change of the land price list once every 5 years, the price of land increase of 40-50% is normal. However, it is unreasonable why build a framework every 5 years, which is not shorter. Because the current real estate market fluctuates very fast, from the end of this year to the beginning of next year, the market has fluctuated.
“The development cycle of a real estate project usually takes about 3 years. Therefore, it is unreasonable to change land price list once every 5 years, ”Mr. Son said and explained, land price in the fifth year of the previous price list and the first year of the new price list are different. very big. As a result, many investors have to race for land allocation, taxation, and change of land use purpose before the time of price change.
Price list in di An town is projected to rise almost twice as far as the current. Because before deciding to invest in the cost, it even gave the cost of the product. After only 1 year, the price of the land suddenly doubled, and a half, then the market was not able to catch the pace, the new product launched to market will be shocked about the price... Naturally, when the investment costs increase, the price of the product also increases, the last person who is the customer.
And Vu Ly Cung, Deputy General Director of Danh Viet Group Real Estate Service Joint Stock Company, also said that the increase of land price list in Binh Duong province will not affect projects that have already paid land taxes. even these businesses have more advantages. In contrast, new projects and projects that have not yet reached the stage of land tax payment will have to pay higher taxes to the State, which will then be added to the product selling price.
Many new residential projects are formed in Binh Duong. However, customers should not be too worried about the increase of land price list in Binh Duong, because when enterprises increase project investment cost in accordance with the new land price list, it does not mean that the selling price also increases. according to that correspondence.
For example, a project is currently selling for 40 million VND / m2, after applying the new price, with the land price frame increased by 50%, but does not mean that the business sells that project for 60 million. VND / m2, but instead, businesses will have to balance their profits to adjust accordingly. It is possible for a business to cut off a portion of profits to fit the market.
“If, before doing and selling the project, the enterprise gains 30%, then after the new land price list, the enterprise accepts the interest rate to be reduced to 15% to ensure the selling price of the product is suitable for the market. It is possible for a business to cut off a portion of profits to fit the market.
Predicting the future real estate market in Binh Duong, Mr. Cung said that Di An and Thuan An town areas still develop and keep the price regardless of the fluctuation of real estate market in Binh Duong. By besides being located adjacent to TP.HCM, the two areas also focus on many large industrial zones, which will develop based on the real demands of customers.
According to Mr. Ngo Duc Son, the wave of businesses poured out in Binh Duong to hunt for land funds in the coming time will continue to increase. By having the fact that, industrial parks in Binh Duong are delivered very soon ground. By this time, the first-time industrial clusters or old enterprises will start to use up their land. In the next 1-2 years, they will have to return the land fund to the government to convert the land's utilities to use. residential area. This will be the opportunity for professional investors in Ho Chi Minh City. HCM easily hunted the land fund in this area.