The government has proposed setting the land price table and a K adjustment coefficient every three years instead of annually, VnExpress reports, as part of the amended Land Law before the National Assembly. The Finance Ministry says a three-year cycle reduces implementation pressure, updates market prices more promptly than a five-year cycle and lets people, businesses and localities plan costs. Localities could adjust prices and K mid-cycle if infrastructure, planning or management goals change.
Under the draft, provincial People's Councils would decide the table and K, and the first cycle would apply from 1 January 2028. The bill has three chapters and 112 articles, 148 fewer than the current law.
The Assembly is expected to vote on it on 21 November. VnExpress does not say clearly what the cycle is under current law.
Thanh Niên reports concern about K. Nguyen Van Dinh, chairman of the Vietnam Real Estate Brokers Association, says K is the ratio of the market land price to the price in the table, drawn from transaction and auction data. The draft points toward calculating most financial obligations from the table multiplied by K.
The association estimates land-use fees on one project could rise 2 to 2.6 times under that approach, without giving the project or the calculation. A review of 22 localities found about a third apply a K of 1; Hanoi's component coefficient is 1.45 and Ho Chi Minh City's 1.7.
Mr Dinh wants the basis and review cycle for K clarified, a review trigger of about 20% market movement, and at least six months' notice of changes that raise financial obligations. A real estate executive, unnamed, said K should be as low as possible or 1.
The draft has not passed, so buyers and developers should not assume the proposals will become law in this form.
Sources
- Vì sao Bộ Tài chính đề xuất điều chỉnh bảng giá đất 3 năm một lần?
- Băn khoăn hệ số K làm đội tiền sử dụng đất
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