Guidelines for determining specific land prices using the land price adjustment coefficient method in Vietnam from August 1, 2024

Guidelines for determining specific land prices using the land price adjustment coefficient method in Vietnam from August 1, 2024​ (Image from Internet)

Guidelines for determining specific land prices using the land price adjustment coefficient method in Vietnam from August 1, 2024

According to Article 158 of the Land Law 2024, the land price adjustment coefficient method is implemented by multiplying the land price in the land price table by the land price adjustment coefficient. The land price adjustment coefficient is determined by comparing the land price in the land price table with the market land price in Vietnam.

The land price adjustment coefficient method is applied to specifically value compensation when the State recovers land, for cases where multiple adjacent parcels with the same usage purpose have been priced in the land price table but are not eligible for the comparative method.

Based on Article 7 of Decree 71/2024/ND-CP, the procedure for determining specific land prices using the land price adjustment coefficient method in Vietnam is as follows:

(1) Survey and collect information on the parcels needing valuation according to the land position and area as specified in the land price table, including location, area, type of land, duration of use, and land price information in the land price table.

(2) Survey and collect information on land prices for each land position and area as specified below:

- The input information for land valuation using land valuation methods includes:

+ Land price recorded in the national land database, national price database;

+ Land price recorded in land use rights transfer contracts; auction-winning land price after fulfilling financial obligations;

+ Land price collected through investigation and surveys in cases where there is no land price information as mentioned above.

- The input land price information mentioned above is information recorded within 24 months from the valuation date specified in Clause 2, Article 91, and Clause 3, Article 155 of the Land Law 2024. The use of information collected as defined in this clause prioritizes the most recent information relative to the valuation date.

In cases where the parcels selected for information collection have assets attached to the land, the value of these assets will be deducted to determine the land price of the parcels as stipulated in Clauses 4 and 5, Article 4 of Decree 71/2024/ND-CP.

(3) Determine market land price for each land position and area:

- Compile the collected land prices according to each land position and area;

- If many collected land prices for a specific land position and area show certain similarities, but some prices are excessively high or low compared to the general common level, such outliers will be excluded when determining the market land price;

- The market land price for each land position and area is determined by taking the arithmetic average of the respective land prices for that position and area.

(4) Determine the land price adjustment coefficient

The land price adjustment coefficient is determined according to each type of land, land position, and area by dividing the market land price by the land price in the land price table at that specific position and area.

(5) The land price of the parcel needing valuation in each land position and area is determined as follows:

Tran Trong Tin

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