Hanoi Land Price Gradually Regulated by Market

The Hanoi People’s Committee has released a report on land prices in 2009 and 2010. Land prices in some districts, including Ha Dong, have risen averagely between 20 percent and 100 percent over the past time. This will likely raise land prices in 2010.

 

According to the Hanoi People’s Committee, the land price list to be applied from January 1, 2010 will be adjusted step by step in line with the market rates in order to deal with current problems on land prices.

Land prices in 2009 have been rising considerably, according to investigation results on land prices in Hanoi by the city People’s Committee. Land prices in some areas in which the government approved infrastructure projects have risen averagely 20 percent, especially; land prices in some areas in Tu Liem, Ha Dong and Hoai Duc districts have risen by up to 100 percent.

 

In 2009, the Hanoi People’s Committee will turn green lights to 13 projects, leading to land prices rising by between 5 percent and 299 percent. Buyers with land prices rising by between 20 percent and 200 percent won in 24 projects with a total area of 57,000 square meters auctioned by the city government.

 

Due to land price fluctuation in Hanoi after expansion, land prices in Ha Dong district will be raised by maximum 40 percent in line with rates in areas surrounding Thanh Xuan and Tu Liem districts. Land prices in Ba Dinh, Hoan Kiem, Dong Da, Hai Ba Trung, Thanh Xuan, Tay Ho, Cau Giay, Hoang Mai and Long Bien districts will be raised by 21 percent. Land prices on streets and the remaining areas in Hanoi will be adjusted decreasingly from the city centre to outskirts. Accordingly, the city will adjust land prices on some new streets to be invested with infrastructure projects and streets convenient for businesses and service development.

 

Land prices in outskirts with high speed in economic development and urbanisation such as Tu Liem, Gia Lam, Dong Anh, Thanh Tri, Hoai Duc and Dan Phuong will be raised equivalently to neighbouring inner districts. Land prices in communes bordering inner districts in Tu Liem, Thanh Tri and Gia Lam outskirts, which have synchronic infrastructure and fast economic development and urbanisation, will also be increased inline with the rates in their neighbouring districts.

 

The city will keep unchanged prices of production and non-agriculture business land in 2009. In some areas, non-agriculture land prices were raised to the peak of over VND35.32 million per square km and the minimum of VND1.1 million.

 

According to the Hanoi People’s Committee, the city will comply with the general principle of adjusting land prices in 2010. The principle is the Law on Land issued in 2003, the decree No. 188 on defining land prices and land price framework, the decree No. 69 added to land use planning, land prices, land revoking, compensation, support and resettlement.

 

Land prices in inner districts will have a minimum of VND1.8 million per square metre and a maximum of VND81 million per square metre. Land prices in townships and districts will also rise depending on the improvement of technical infrastructure and their distances far from the city centre. Accordingly, the minimal price will be VND750,000 per square metre and the maximal rate will be VND8,040,000 per square meter.