Thông tư 145/2007/TT-BTC hướng dẫn Nghị định 188/2004/NĐ-CP và Nghị định 123/2007/NĐ-CP sửa đổi Nghị định 188/2004/NĐ-CP về phương pháp xác định giá đất và khung giá các loại đất do Bộ Tài chính ban hành
Số hiệu: | 145/2007/TT-BTC | Loại văn bản: | Thông tư |
Nơi ban hành: | Bộ Tài chính | Người ký: | Trần Văn Tá |
Ngày ban hành: | 06/12/2007 | Ngày hiệu lực: | 31/12/2007 |
Ngày công báo: | 16/12/2007 | Số công báo: | Từ số 821 đến số 822 |
Lĩnh vực: | Bất động sản | Tình trạng: |
Hết hiệu lực
13/08/2014 |
TÓM TẮT VĂN BẢN
Văn bản tiếng việt
Văn bản tiếng anh
VÍ DỤ VỀ PHƯƠNG PHÁP SO SÁNH TRỰC TIẾP
(Kèm theo Thông tư số: 145/2007/TT-BTC ngày 06 /12/2007 của Bộ Tài chính)
Áp dụng phương pháp so sánh trực tiếp để xác định giá đất (để đơn giản và dễ hiểu, ví dụ này chỉ giới thiệu phương pháp so sánh trực tiếp để xác định giá đất của thửa đất, khu đất cần định giá với một thửa đất, khu đất so sánh).
Giả định trong quá trình định giá khu đất ở có diện tích 20.000 mét vuông thuộc một đô thị loại V (kí hiệu là khu đất B), cơ quan định giá đã thu thập được thông tin về một khu đất liền kề có diện tích 25.000 mét vuông có thể so sánh được với khu đất cần định giá đã được tổ chức đấu giá quyền sử dụng đất thành công để đầu tư xây dựng nhà ở (kí hiệu là khu đất A) diễn ra trong khoảng thời gian gần nhất với thời điểm xác định giá khu đất B. Tổng số tiền thu được từ đấu giá khu đất A là 125 tỷ đồng, tính ra đơn giá một mét vuông là 5,0 triệu đồng (5 triệu đ/m2).
Với tất cả thông tin thu thập được cơ quan định giá tiến hành so sánh giữa khu đất A và khu đất B như sau:
Các tiêu chí so sánh |
Những điểm giống nhau |
Những điểm khác nhau |
||
Khu đất A |
Khu đất B |
Khu đất A |
Khu đất B |
|
1. Căn cứ pháp lý |
Có giấy chứng nhận quyền sử dụng đất |
Có giấy chứng nhận quyền sử dụng đất |
|
|
2. Mục đích sử dụng |
Đất ở tại đô thị loại V |
Đất ở tại đô thị loại V |
|
|
3. Vị trí đất |
Vị trí 1: Đất có một mặt tiền liền cạnh với đường phố |
Vị trí 1: Đất có một mặt tiền liền cạnh với đường phố |
|
|
4. Loại đường phố |
Loại 2 |
Loại 2 |
|
|
5. Chiều rộng mặt tiền (m) |
|
|
100 |
70 |
6. Chiều sâu của khu đất (m) |
|
|
250 |
285,7 |
7. Kết cấu hạ tầng - Đường giao thông |
|
|
- Thuận lợi (có 2 mặt tiếp giáp với đường hẻm lớn) |
- Kém thuận lợi hơn (có một mặt tiếp giáp với đường hẻm lớn) |
8. Môi trường - Độ ồn ào - Độ bụi |
- Ồn ào
|
- Ồn ào
|
- Bụi |
- Ít bụi hơn |
9. Tài sản trên đất |
Không |
Không |
|
|
10. Tính chất của cuộc mua bán |
Tự nguyện |
Tự nguyện |
|
|
Từ việc so sánh, cơ quan định giá đã rút ra được kết quả 2 khu đất trên có 7 tiêu chí giống nhau và 4 tiêu chí khác nhau. Để xác định sự khác biệt giữa các yếu tố so sánh giữa các khu đất để điều chỉnh mức giá, cơ quan định giá áp dụng phương pháp chuyên gia kết hợp với phương pháp thống kê các chứng cứ thị trường để tính ra hệ số khác biệt giữa các tiêu chí.
Có thể sử dụng cách chấm điểm theo thang điểm có điểm cao nhất là điểm 10 áp dụng cho từng tiêu chí có điều kiện tốt nhất, (ví dụ, khi xét về vị trí, nếu đất có vị trí tốt nhất xếp điểm 10; hoặc khi xét về loại đường phố, nếu đất ở đường phố có khả năng sinh lợi cao nhất, kết cấu hạ tầng thuận lợi nhất xếp điểm 10). Các điểm dưới 10 áp dụng cho cho các tiêu chí cùng loại có điều kiện kém hơn. Căn cứ tình hình cụ thể, địa phương xây dựng thang điểm để định giá cụ thể:
- Chiều rộng mặt tiền của khu đất |
Rộng hơn: 10 điểm Hẹp hơn: 8 điểm |
Thuộc khu đất A Thuộc khu đất B |
- Chiều sâu của khu đất |
Ngắn hơn: 10 điểm Sâu hơn: 9 điểm |
Thuộc khu đất A Thuộc khu đất B |
- Giao thông |
Thuận lợi: 10 điểm Kém thuận lợi: 8,5 điểm |
Thuộc khu đất A Thuộc khu đất B |
- Độ bụi |
Bụi: 8 điểm Ít bụi hơn: 9 điểm |
Thuộc khu đất A Thuộc khu đất B |
Mỗi điểm kém giảm đi 5% giá, ngược lại, mỗi điểm tăng cộng thêm 5% giá của khu đất so sánh (A). Số điểm kém giảm giá và tăng giá bao nhiêu phần trăm là hoàn toàn phụ thuộc vào kết quả khảo sát thị trường. Với qui ước như vậy thì:
Trên cơ sở mức giá đấu giá thành công của khu đất A là 125 tỷ đồng so sánh để định giá cho khu đất B, mức giá của khu đất B sẽ bị giảm:
- Chiều rộng mặt tiền: B kém A: 2 điểm, giảm 10% = 12,5 tỷ đồng
- Chiều sâu của khu đất: B kém A: 1 điểm, giảm 5% = 6,25 tỷ đồng
- Giao thông: B kém A: 1,5 điểm, giảm 7,5% = 9,375 tỷ đồng
Tổng số giảm giá do khác biệt B kém A: 28,125 tỷ đồng
B sẽ được cộng thêm:
- Độ bụi: B hơn A: 1 điểm, tăng 5% = 6,25 tỷ đồng
Tổng số tăng giá do khác biệt B hơn A: 6,25 tỷ đồng
Giá khu đất A được điều chỉnh lại (kí hiệu là A’) theo những yếu tố khác biệt của khu đất B được tính toán như sau:
A’ = 125 - 28,125 + 6,25 = 103,125 (tỷ đồng)
Tính ra đơn giá một mét vuông là:
103.125 triệu đồng : 25.000 m2 = 4,125 triệu đ/m2.
Tương tự như vậy, giả sử cơ quan định giá lựa chọn được thêm 2 khu đất C và D nữa để so sánh với khu đất B. Kết quả phân tích, so sánh đã xác định được đơn giá của khu đất C đã điều chỉnh theo các yếu tố của khu đất B là 4,5 triệu đ/m2 và của khu đất D đã điều chỉnh là 4,05 triệu đ/m2.
Đơn giá khu đất B được xác định bằng cách lấy mức giá trung bình của 3 mức giá đã điều chỉnh ở trên:
(4,125 + 4,5 + 4,05) : 3 = 4,225 (triệu đ/m2)./.
VÍ DỤ VỀ PHƯƠNG PHÁP THU NHẬP
(Kèm theo Thông tư số: 145/2007/TT-BTC ngày 06 /12/2007 của Bộ Tài chính)
Áp dụng phương pháp thu nhập để xác định giá đất nông nghiệp trồng cây hàng năm tại xã A (là xã đồng bằng) của huyện C, tỉnh X thuộc vùng Đồng bằng sông Cửu Long. Thửa đất được lựa chọn để định giá có diện tích 4.000 m2 được xếp vị trí đất loại 3, một năm trồng 3 vụ lúa tẻ thường. Cơ quan định giá đất đã tiến hành điều tra, khảo sát thực tế và thu thập các số liệu trong 3 năm liên tục như sau:
Sản lượng lúa thu hoạch cả năm |
ĐV tính |
2004 |
2005 |
2006 |
kg |
6.500 |
6.000 |
7.200 |
|
Giá bán bình quân năm 2006 (năm định giá đất) |
đ/kg |
2.500 |
2.500 |
2.500 |
Tổng thu nhập |
đồng |
16.250.000 |
15.000.000 |
18.000.000 |
Chi phí sản xuất |
đồng |
7.930.000 |
7.500.000 |
9.108.000 |
Lãi suất tiền gửi tiết kiệm (*) kỳ hạn 12 tháng |
%/năm |
8,0 |
8,3 |
8,6 |
Ghi chú: (*) Giả sử đây là mức lãi suất tiền gửi tiết kiệm tiền đồng Việt Nam (VNĐ) loại có kỳ hạn 12 tháng tại ngân hàng thương mại có mức lãi suất cao nhất tại địa phương.
+ Tổng thu nhập của 3 năm là 49.250.000 đồng.
+ Tổng chi phí sản xuất 3 năm là 24.538.000 đồng.
+ Thu nhập thuần túy bình quân một năm là :
= 8.237.333 (đồng)
+ Lãi suất tiền gửi tiết kiệm VNĐ tại ngân hàng thương mại quốc doanh loại kỳ hạn 12 tháng bình quân là 8,3%/năm.
+ Giá trị của thửa đất trồng lúa có diện tích 4.000 m2 tính theo công thức nêu ở bước 4 mục 2 Phần I Thông tư này sẽ là:
Giá đất ước tính |
= |
8.237.333 8,3 |
× |
100 |
= |
99.244.976 (đồng) |
|
|
|
|
hoặc |
» |
24.811 đ/m2 |
|
|
|
|
làm tròn |
25.000 đ/m2 |
VÍ DỤ VỀ PHƯƠNG PHÁP CHIẾT TRỪ
(Kèm theo Thông tư số:145/2007/TT-BTC ngày 06/12/2007 của Bộ Tài chính)
Cơ quan định giá đất đang tiến hành xác định giá một thửa đất ở có diện tích 90 m2 (kích thước mặt tiền 5m x dài 18 m, trên thửa đất đã xây nhà 4 tầng), mặt tiền tiếp giáp với một đường nội bộ rộng 8m của một Khu đô thị mới tại Thủ đô Hà Nội đã được xây dựng hoàn chỉnh.
Áp dụng phương pháp chiết trừ để xác định giá thửa đất nói trên được thực hiện như sau:
Bước 1: Qua điều tra khảo sát thị trường cơ quan định giá thu thập được thông tin về một số cuộc mua bán thành công một ngôi nhà ở trong Khu đô thị trên có mặt bằng xây dựng tương tự như thửa đất cần định giá.
Để đơn giản, trong ví dụ này chỉ nêu về một bất động sản trong số các bất động sản đã giao dịch thành công, đó là một ngôi nhà có diện tích mặt bằng là 100 m2 (nhà 4 tầng, mặt tiền 5m) nằm tiếp giáp một đường nội bộ khác, cũng rộng 8m và cắt ngang với con đường có thửa đất cần định giá; giá bán bất động sản (nhà và đất) giao dịch thành công là 3.600 triệu đồng, ngôi nhà này được bán cách thời điểm hiện tại 4 tháng, trong thời gian này giá đất trên thị trường hầu như không biến động. Tuy nhiên, thửa đất cần định giá có vị trí thuận lợi hơn và có hướng nhà tốt hơn, do đó, thửa đất cần định giá có đơn giá cao hơn thửa đất làm mặt bằng của ngôi nhà đã chuyển nhượng thành công này khoảng 6%.
Bước 2: Khảo sát thực địa và thị trường thu thập được số liệu sau:
- Diện tích xây dựng: 75 m2.
- Đơn giá xây dựng ngôi nhà có chất lượng và công dụng tương đương theo giá thị trường hiện tại là 2,8 triệu đồng/m2 sàn (đơn giá trọn gói, bao gồm lợi nhuận của chủ thầu xây dựng).
- Ngôi nhà đã được sử dụng 12 năm; tuổi đời kinh tế dự kiến là 70 năm. Do được bảo dưỡng và sử dụng tốt nên ngôi nhà có thể sử dụng được 63 năm nữa.
Bước 3: Xác định giá trị còn lại của ngôi nhà:
- Tổng diện tích sàn xây dựng của ngôi nhà: 75 m2 ´ 4 = 300 m2
- Chi phí thay thế xây dựng mới ngôi nhà có diện tích và công dụng tương tự:
2,8 triệu đồng/m2 ´ 300 m2 = 840 triệu đồng
- Xác định giá trị hao mòn:
+ Tỷ lệ hao mòn: Áp dụng phương pháp xác định tỷ lệ hao mòn theo tuổi đời:
Tỷ lệ hao mòn của ngôi nhà |
= |
1 |
− |
Số năm sử dụng còn lại |
Tuổi đời kinh tế |
= 1 - = 0,1 hoặc 10%
+ Giá trị hao mòn hữu hình: 840 triệu đồng ´ 10% = 84 triệu đồng
Giá trị còn lại của ngôi nhà:
840 triệu đồng - 84 triệu đồng = 756 triệu đồng
Bước 4: Xác định giá thửa đất của bất động sản
Giá trị của thửa đất: 3.600 triệu đồng – 756 triệu đồng = 2.844 triệu đồng.
Đơn giá thửa đất là: 2.844 triệu đồng : 100 m2 = 28,44 triệu đồng/m2;
Làm tròn: 28,5 triệu đồng/m2.
Bước 5: Xác định giá thửa đất cần định giá
Tiến hành điều chỉnh đơn giá đất của bất động sản nêu trên theo khác biệt về vị trí đất sẽ xác định được giá đất của thửa đất cần định giá:
28,5 triệu đồng + (28,5 triệu đồng x 6%) = 30,21 triệu đồng/m2
Làm tròn: 30,5 triệu đồng/m2.
Kết luận: Đơn giá của thửa đất cần định giá khoảng 30,5 triệu đồng/m2./.
VÍ DỤ VỀ PHƯƠNG PHÁP THẶNG DƯ
(Kèm theo Thông tư số:145/2007/TT-BTC ngày 06/12/2007 của Bộ Tài chính)
Khu đất cần định giá có diện tích 10.000m2 ở Quận X của một thành phố thuộc đô thị loại I. Nhà nước cho một doanh nghiệp thuê dùng vào mục đích sản xuất công nghiệp; đã đến thời điểm hết hạn hợp đồng thuê đất, do vấn đề ô nhiễm môi trường, Ủy ban nhân dân thành phố đã quyết định cho doanh nghiệp thuê đất tại một khu công nghiệp nằm ở khu vực ngoại ô. Dự kiến sẽ giao khu đất này cho một công ty kinh doanh nhà ở đô thị đầu tư xây dựng kết cấu hạ tầng phân lô và xây dựng nhà để bán. Hiện tại trên khu đất có nhà xưởng sản xuất diện tích 6.000m2 (nhà trệt, tường gạch, vì kèo thép, mái tôn, nền láng xi măng); các chuyên giá đánh giá chất lượng còn lại 30%.
Theo quy định về xây dựng, đối với dự án này tỷ lệ diện tích đất sử dụng để xây dựng nhà ở tối đa là 55%; tổng diện tích xây dựng là 5.500 m2.
Dự án sẽ được phép xây dựng một tòa nhà chung cư cao 12 tầng với diện tích mặt bằng 3.000 m2; diện tích đất phân lô bán nền là 2.500 m2 (chia thành 25 lô, mỗi lô có diện tích 100 m2).
Giả định dự án sẽ hoàn thành trong vòng một năm và nhà đầu tư chỉ phải bồi thường phần giá trị nhà xưởng cho doanh nghiệp bị thu hồi đất.
Căn cứ vào quy hoạch, thiết kế chi tiết của dự án và các dữ liệu do nhà đầu tư cung cấp; qua việc khảo sát phân tích thị trường bất động sản, thị trường xây dựng, cơ quan định giá đất thu thập được các thông tin sau:
- Đơn giá xây dựng mới nhà xưởng có kết cấu tương tự 800.000đ/m2.
- Chi phí đầu tư xây dựng hạ tầng bình quân 600.000 đ/m2
- Chi phí thiết kế, quy hoạch dự án 1.000 triệu đồng.
- Chi phí xây dựng nhà chung cư bình quân 3.000.000đ/m2 .
- Chi phí xây dựng bể nước, trạm bơm nước và máy phát điện dự phòng phục vụ cho tòa nhà chung cư là 1.200 triệu đồng.
- Chi phí phá dỡ nhà xưởng cũ 100 triệu đồng, phế liệu thu hồi được bằng 20% giá trị còn lại của nhà xưởng.
- Nhà đầu tư phải vay ngân hàng 60% chi phí xây dựng với lãi suất 10%/năm.
- Chi phí quảng cáo và bán nhà bằng 1% doanh thu.
- Chi phí quản lý dự án bằng 5% tổng chi phí của dự án.
- Lợi nhuận của nhà đầu tư 20% tổng doanh thu của dự án.
- Giá bán căn hộ chung cư bình quân 7,0 triệu đ/m2, tổng diện tích các căn hộ chiếm 80% tổng diện tích sàn xây dựng nhà chung cư; Đất phân lô dự kiến bán được 15 triệu đ/m2. Giá này chưa bao gồm thuế giá trị gia tăng.
Áp dụng phương pháp thặng dư để định giá khu đất này như sau:
Bước 1: Xác định mục đích sử dụng tốt nhất và có hiệu quả nhất của khu đất: Đó là dùng cho mục đích đất ở; trong đó cơ cấu hợp lý nhất là dành khoảng 55% diện tích đất có khả năng xây dựng để xây dựng chung cư cao tầng và khoảng 45% diện tích đất còn lại để phân lô bán nền.
Bước 2: Ước tính tổng doanh thu
- Doanh thu từ việc bán các căn hộ chung cư:
(3.000m2 ´ 12 ´ 80%) ´ 7,0 tr.đ/m2 = 201.600 tr.đ
- Doanh thu từ diện tích đất phân lô bán nền:
2.500 m2 ´ 15 tr.đ/m2 = 37.500 tr.đ
Tổng doanh thu dự kiến: 201.600 tr.đ + 37.500 tr.đ = 239.100 tr.đ
Bước 3: Ước tính tổng chi phí
- Chi phí đầu tư hạ tầng
10.000m2 ´ 600.000 đ/m2 = 6.000 tr.đ
- Chi phí thiết kế, quy hoạch = 1.000 tr.đ
- Chi phí xây dựng chung cư
(3.000m2/tầng ´ 12 tầng) ´ 3,0 tr.đ/m2 = 108.000 tr.đ
- Chi phí xây dựng bể nước, trạm bơm nước và máy phát điện dự phòng phục vụ cho tòa nhà chung cư = 1.200 tr.đ
- Chi phá dỡ nhà xưởng cũ = 100 tr.đ
- Chi phí bồi thường nhà xưởng
(6.000 m2 ´ 800.000 đ/m2) ´ 30% = 1.440 tr.đ
- Trừ đi giá trị phế liệu thu hồi 1.440 tr.đ ´ 20% = -288 tr.đ
- Chi phí quảng cáo bán hàng 1% ´ 239.100 tr.đ = 2.391 tr.đ
Tổng chi phí xây dựng trực tiếp: 119.843 tr.đ
- Trả lãi tiền vay ngân hàng
(119.843 tr.đ ´ 60%) ´ 10% = 7.190,58 tr.đ
- Chi phí quản lý 119.843 tr.đ ´ 5% = 5.992,15 tr.đ
- Lợi nhuận của nhà đầu tư: 239.100 tr.đ ´ 20% = 47.820 tr.đ
Tổng chi phí và lợi nhuận 180.845,73 tr.đ
Bước 4: Xác định giá đất
Giá trị ước tính của khu đất
239.100 tr.đ - 180.845,73 tr.đ = 58.254,27 tr.đ
Làm tròn 58.000 tr.đ; hoặc 5,8 tr.đ/m2
Kết luận giá trị của khu đất nêu trên khoảng 58 tỷ đồng hoặc 5,8 tr.đ/m2./.
THE MINISTRY OF FINANCE |
SOCIALIST REPUBLIC OF VIET NAM |
No. 145/2007/TT-BTC |
Hanoi, December 6, 2007 |
PROVIDING GUIDELINES FOR IMPLEMENTATION OF DECREE 188/2004/ND-CP OF THE GOVERNMENT DATED 16 NOVEMBER 2004 (AS AMENDED BY DECREE 123 DATED 27 JULY 2007) ON LAND PRICE DETERMINATION METHODS AND PRICE FRAMEWORKS FOR ALL TYPES OF LAND
THE MINISTER OF FINANCE
Pursuant to Decree 77/2003/ND-CP of the Government dated 1 July 2003 on the functions, duties, powers and organizational structure of the Ministry of Finance;
Pursuant to Decree 188/2004/ND-CP of the Government dated 16 November 2004 on price determination methods and price frameworks for all types of land (hereinafter referred to as Decree 188);
Pursuant to Decree 123/2007/ND-CP of the Government dated 27 July 2007 amending Decree 188 (hereinafter referred to as Decree 123);
Having reached agreement with the Ministry of Natural Resources and Environment, the Ministry of Finance provides the following guidelines on Decree 188 (as amended by Decree 123):
I. LAND PRICE DETERMINATION METHODS
The following steps shall be taken in order to determine a land price in accordance with the direct comparison method:
(a) Step 1: Survey and gathering of information:
- Identify the sites of land parcels or vacant blocks (i.e. land on which there has not yet been investment in construction of buildings) which are comparable with the land parcel or vacant block subject to the price determination ["the land in question"]1, in order to gather information.
Select three to five land parcels or vacant blocks which adjoin or are situated in an area neighbouring the land in question and which have similar characteristics to the land in question in terms of land type, location2, land area, infrastructure, legal grounds and use purpose and which have been successfully sold on the market (comprising traded directly between individuals and organizations with each other, traded via an auction of land use rights, or successfully traded on a real estate exchange floor).
- Period for gathering information:
Information gathered must have been created in the most recent period from the time of survey in order to determine a price for the land in question. If information in the most recent period cannot be gathered, information on assignments of land use rights in the period of one year before the time of land price determination may be gathered.
- Information on the following should be gathered:
+ Location.
+ Current use characteristics (land type, land area and measurements of borders, geographic features, assets on the land, current use purpose and zoned use purpose).
+ Conditions regarding infrastructure.
+ Environment (comprising the natural environment including landscape, water sources; level of pollution of air and water sources; noise pollution etc.; and the social environment including social order and security, and population density).
+ Legal characteristics (zoning and construction master planning of the land in question; certificate of land use right; whether financial obligations have been discharged and if so to what degree).
+ Time and price of successful assignment, transaction or auction of land use rights.
+ Date and conditions of such assignment, transaction or auction, and payment therefor.
- Conditions of information:
The above information must be gathered from results of actual market assignments of land use rights in normal conditions as stipulated in article 1.2 of Decree 123.
(b) Step 2: Comparison and analysis of information:
Information which is surveyed and gathered in Step 1 shall be analysed and compared in order to sort out the similar and the different elements between the land parcels or vacant blocks which are comparable with the land in question, and such elements shall be used to calculate and fix a price for the land in question.
(c) Step 3: Adjust the different price elements:
Adjust the different price elements of the comparable land parcels or vacant blocks in order to determine a price for the land in question.
The estimated value of the land in question shall be calculated by way of adjustment of the different price elements of the comparable land parcels or vacant blocks as follows:
Estimated value of the land in question |
= |
Price for assignment of land use rights of each comparable land parcel or vacant block |
± |
Amount of money for adjustment of the price formed from the different price elements of each comparable land parcel or vacant block |
Of which the amount of money for adjustment of the price between each comparable land parcel or vacant block and the land in question is to adjust the difference in terms of prices resulting from differences in terms of location, infrastructure, legal characteristics and level of environmental pollution etc. The difference in terms of prices between the comparable land and the land in question (which may be calculated as an absolute value or as a percentage of the price for assignment of land use rights in normal conditions on the local market) shall be determined on the basis of the evaluation of experts and the price determining body which assisted the provincial people's committee when the latter made its decision on specific prices in the locality.
Where a land price was changed during the period from the time of successful assignment of the land use right of the comparable land parcel to the time of price determination of the land in question, then before applying the above formula, the price for the assignment of the comparable land parcel must be adjusted (increased or reduced) by the current fluctuation indicator for land of such type which may be taken and calculated from information collated by the Department of Finance or price consultants pursuant to Circular 80/2005/TT-BTC of the Ministry of Finance dated 15 September 2005 providing guidelines for implementation of Decree 188, or the current fluctuation indicator for land of such type may be taken from statistics provided by the statistics body (if available).
(d) Step 4: The price for the land in question shall be determined by using the average of prices for three to five comparable land parcels or vacant blocks which has been adjusted for the price difference in Step 3.
Appendix 1 provides an example of determining a land price in accordance with the direct comparison method.
The following steps shall be taken in order to determine a land price in accordance with the income method:
(a) Step 1: Calculation of total annual income derived from the land in question:
- With respect to a vacant block or land on which buildings (housing) have been constructed for lease, total annual income derived from the land in question is the rent for the real estate (comprising the land plus assets on the land) collectible annually.
- With respect to agricultural land on which the person allocated with such land himself organizes agricultural production, total income earned means:
+ For land for planting annual crops and for land for aquaculture, total income earned from the land in question is the total turnover from the above-mentioned production activities on the land collectible annually.
+ For land for planting perennial crops (fruit trees, industrial orchards and trees for wood production), total income shall be calculated on the basis of annual revenue, periodic revenue or one-off revenue depending on the type of trees planted.
(b) Step 2: Calculation of expenses payable for generation of total income:
- Total expenses shall include specific costs such as land use fees, costs for investment in improvements, and production costs. These costs shall be calculated in accordance with the current State regulations; costs for which there is no relevant State regulation shall be calculated on the basis of actual prevailing prices in the local market where the business or production entity made the payment (specified in the contract or goods sale invoice published by the competent financial body).
- If there has been investment in construction of assets on the land in question, total annual expenses shall not include any item for depreciation of the assets on the land.
(c) Step 3: Annual net income shall be calculated in accordance with the following formula:
Annual net income |
= |
Total annual income calculated at Step 1 |
Minus |
Total expenses calculated at Step 2 |
(d) Step 4: An estimated land price shall be determined in accordance with the following formula:
Estimated land price |
= |
Annual net income earned from the parcel of land |
Rate of interest for Vietnamese dong savings with a term of 12 months |
When a land price is determined in accordance with the income method, then the total income, total expenses and net income calculated at steps 1, 2 and 3 respectively must be the net average total income, total expenses and net income respectively of the location of land of the type subject to the land determination, with the correct land use purpose approved by the authority, and calculated as an average of the three years immediately prior to the time of the land price determination. If it is impossible to gather data for three years, then the data of the year immediately prior to the time of the land price determination shall be used. Total income and total expenses shall be calculated using prices stipulated in State regulations, or if there are no such applicable regulations than the market floor prices of goods, materials, services and labour remuneration and annual production volumes o as at the time of the land price determination.
The Vietnamese dong savings interest rate for a term of 12 months means the interest rate of the commercial bank with the highest interest rate in the locality.
Appendix 2 provides an example of determining a land price in accordance with the income method. With respect to land parcels on which there has been investment in construction of assets (comprising project works, housing or buildings; or perennial crops such as rubber tree, coffee, tea, pepper tree, cashew or fruit trees and so forth have been planted) in order to conduct business or production, then first and foremost the price of the land and assets must be estimated in accordance with the income method, and then the value of the assets on the land shall be deducted and the residual value shall be the value of the land in question.
The method of deduction of the value of assets on land shall be as provided in clause 3 (c) below of this Section 1.
The following steps shall be taken in order to determine a land price in accordance with the subtraction method:
(a) Step 1: Gathering of information:
- Gather market information in order to select at least three properties (comprising the land plus assets on the land) which have been successfully sold on the market and which have similar characteristics to the land in question in terms of location, status quo, infrastructure conditions, legal grounds, use purpose, cost and so forth.
- The period for gathering market information shall be the same as stipulated in clause 1(a) above for the direct comparison method.
(b) Step 2: On-site survey:
- Conduct an on-site survey and obtain a complete and accurate description of the assets on the [three] properties mentioned above (assets comprising housing, buildings or perennial crops).
(c) Step 3: Determine a present value for the assets in question in accordance with the following formula:
Present value of assets on the land |
= |
Value of new construction calculated at the time of land price determination |
Minus |
Part of the value for wear and tear. |
Of which:
- Value of new construction calculated at the time of land price determination means the costs of either replacing the present assets on the land, or of constructing new assets with exactly the same use function as the current assets on the land. This value of new construction shall include both direct and indirect costs, and an appropriate profit margin for the person investor in construction.
- Wear and tear of assets on the land comprises both tangible and intangible wear and tear, and includes a reduction for damage to the assets during their use process and an allowance for outdated function and for wear and tear due to the effect of outside factors.
- The method of calculating the value of new construction and of deducting a part of the value for wear and tear shall be implemented in accordance with current regulations of the Ministry of Construction and the Ministry of Finance, and the Evaluation Standards of Vietnam. If there is no specific regulation on such method, then calculations shall be made on the advice of consultants, experts or organizations directly conducting an evaluation on the basis of market information and data.
(d) Step 4: The value of a property as chosen in Step 1 shall be determined as follows:
Value of the property |
= |
Price of assignment of the property |
Minus |
Current value of assets on the property. |
|||
Land unit |
= |
Value of the property |
|
||||
Area of the property |
|
||||||
|
|
|
|
|
|
|
|
(e) Step 5: A price for the land in question shall be determined as follows:
Adjust the different price elements of the properties as chosen in Step 1 in order to determine a price for the land in question (the same as Step 3 of the direct comparison method above).
The unit price of the land in question shall be the average adjusted unit price of the properties chosen in Step 1.
Appendix 3 provides an example of determining a land price in accordance with the subtraction method.
The following steps shall be taken in order to determine a land price in accordance with the surplus method:
(a) Step 1: Determine the optimal use purpose and effectiveness of the land in question on the following bases:
- Special characteristics of the land in question.
- Regional and urban zoning; construction master planning and plans, and master plans and specific plans for land use as issued and approved by the competent authority.
(b) Step 2: Estimate the total developed value of the property:
- The total developed value of the property includes the total value of housing, of sub-divided plots etc. which it is proposed to sell after completion of the investment project.
- A determination of the total developed value of the property must be conducted on the basis of an investigation and survey of actual prices of market assignments of houses, apartments, buildings, sub-divided plots and so forth of other projects which have been completed and which have similar features to the project in question, and these other projects must be in the adjoining area or in neighbouring areas with similar living conditions and infrastructure conditions; there must also be consideration of the current market orientation and market fluctuations in order to make a realistic estimate of the selling price.
(c) Step 3: Estimate the total costs of developing the property:
- Total costs of developing the property shall include all costs which the investor spends in order to construct the infrastructure (including roads, water supply and water drainage, power supply and so forth); to create the landscape; and to construct the houses, buildings or sub-divided plots in order to sell them correctly in accordance with the detailed zoning approved by the authorized body; and shall also include advertising costs, sales' costs, general management expenses, and an item for profit of the investor (to include an item for business risks).
Estimated total costs must be calculated on the basis of unit prices, drawdown of investment capital, and standard rates stipulated in regulations of the competent authorities. If there are no such applicable regulations, then costs should be based on actual prevailing costs of similar projects in the adjoining or neighbouring areas.
If the investment project for development of the property extends for a number of years and has a number of different stages and revenue and expenses are calculated on an annual basis, then there must be a discount on revenue and expenses in terms of current prices at the time of determining the price of the land in question in accordance with the following formula:
|
H. Total developed value:
Total costs of developing the property:
In which:
TRi is the revenue in the nth year of the project.
C is the expenses in the nth year of the project.
r is the discount rate3 (calculated at the interest rate charged by commercial banks for lending to perform investment projects for development of properties).
n is the number of years required to implement the project (calculating from the commencement of building works until the date of completion of the project).
(d) Step 4: An estimated land value shall be determined as follows:
Estimated value of the land in question |
= |
Total developed value of the property |
Minus |
Total costs of developing the property |
Appendix 4 provides an example of determining a land price in accordance with the surplus method.
5. Conditions for application of land price determination methods:
5.1 When applying any of the land price determination methods, the information and data which is gathered must be in normal market conditions, and any information which is chosen and analysed must be accurate and reliable.
5.2 The direct comparison method shall be the principal method used to determine a land price when sufficient information and data has been gathered in order to apply all four methods.
5.3 In the following cases, a combination of at least two of the land price determination methods specified in this Circular shall be used to examine and compare estimated prices for the purpose of determination of a specific price:
- The assignment of land use rights is not prevalent on the market and the data gathered is not systematic;
- Market prices for assignment of land use rights fluctuated irregularly and do not reflect the relationship between supply and demand for land in normal conditions;
- An estimated land price resulting from application of one of two land price determination methods exceeds the maximum price in the price framework provided by the Government in clause 1 of article 5 of Decree 123.
5.4 The above land price determination methods shall be applied to determine a value of a specific land parcel or vacant block which shall be used as the basis for determining the price of each class [location 1, location 2, location 3 etc.] of location in accordance with the guidelines provided in Part II of this Circular.
II. SPECIFIC PRICE DETERMINATION IN LOCALITIES
1. Preparatory work before making a land price determination:
(a) Classifying boundaries of regions according to their administrative boundaries defined at the commune level into plains [or delta], midlands and mountainous regions in order to apply the price framework for all types of agricultural land, residential land and non-agricultural land used for production or business purposes in rural areas as provided by the Government on the basis of regions, namely [classifying] plains, midlands and mountainous regions into each type of commune in the locality (province or city) for conformity.
(b) Deciding the locations of the following types of agricultural land: land for planting annual crops; land for planting perennial crops; land for aquaculture; forest land for production; protective forest land; specialized use forest land and other agricultural land in accordance with the principles stipulated in article 1.7(b) of Decree 123.
- The locations of agricultural land shall be formulated into classes of location namely location 1, location 2, location 3 etc., and the main basis for this shall be distance from the residence of the land user and distance from the market for the sale of produce, the proximity and level of convenience of traffic because producers will incur travelling and other costs (to buy raw materials and costs of selling their produce), combined with other elements which create advantages:
- Class 1 location shall include all areas which have the same socio-economic conditions, the same infrastructure, and the same land use purpose; and which have from 1 to 3 features regarding place of residence, market position and traffic conditions combined with other advantages for agricultural production:
+ The following places are [close or near] in the adjoining area or in neighbouring areas:
* Residence of the land user (measured from the centre of the hamlet of the land user);
* Market for selling the agricultural produce (rural or urban market or location for collecting the produce);
* Road (comprising a highway, inter-provincial road or inter-district road, or in the case of a place which does not have such roads, then the inter-commune road; and including a waterway being a river, stream or channel in the case of am area which uses such waterways as the main source of transportation).
+ The area has the best features for agricultural production comprising smooth terrain, self-irrigating conditions, a high level of land fertility, and climactic and weather conditions which are favourable for production and business.
- Class 2 location, class 3 location and so forth shall have less favourable conditions than those mentioned above for class 1 location.
- In a number of specific cases, the following matters shall be taken into consideration when classifying locations:
+ Even if an area has the best advantages for agricultural production but it has from 1 to 3 features of a long distance from the residence of the land user, from the market or from a road, then such location shall be classified below class 1.
+ An area shall still be classified as a class 1 location if one of the three features namely residence, market or road is in the adjoining or neighbouring area but the degree of such advantage can only be said to be average or below average.
- A provincial people's committee shall stipulate the criteria and the distances from land locations for the order of class 1 location, class 2 location and so forth, and shall also stipulate the number of such locations depending on the special characteristics of each type of agricultural land within its area and the special characteristics of agricultural production and sale of agricultural produce, ensuring that the criteria and the classifications are appropriate for the actual conditions within its locality.
(c) Providing specific criteria for locations of land from location 1, location 2 and onwards in conformity with the conditions of the particular locality and determining quantities of locations of land for salt production and locations of types of non-agricultural land in rural areas in order to determine land prices in accordance with the general criteria specified in clauses 1(b) and 2 of article 9 of Decree 188, as follows:
- With respect to land for salt production: Subject to specific conditions in the locality, the provincial people's committee shall classify locations on the basis of the criterion of the distance from the saltern [or saltworks] to the salt warehouse in the production area or the distance from the saltern to an inter-district road (or if no inter-district traffic road runs through the area, then the distance to the inter-commune road).
- With respect to residential land, and non-agricultural land used for production or business purposes in rural areas: Subject to the specific conditions in the locality, the provincial people's committee shall determine land areas for which land prices should be determined; classify locations of land, and decide a quantity of locations in each land area for price determination.
(d) Providing specific criteria on locations of land in order to classify locations of land and to decide on a quantity of locations of land in each type of street; and classifying streets and deciding on a quantity of streets from type 1 street onwards in conformity with the conditions of the locality in each category of urban area in order to determine land prices in accordance with the general criteria specified in article 10 of Decree 188.
Subject to specific conditions in its locality, the provincial people's committee may decide not to classify streets but to classify locations of land and provide a quantity of locations of land for each section of street or specific street for land price determination. The classification of locations of land and divisions of each section of street or each street of each urban category for land price determination shall also be performed in accordance with the general principles specified in article 10 of Decree 188.
(e) A provincial people's committee shall, on the basis of decisions establishing and classifying urban areas within the province as approved by the authority, apply the price framework for all types of residential land, and of non-agricultural land used for production or business purposes in rural areas as provided by the Government.
2. Price determination and adjustment of prices for specific types of land:
(a) A land price must be decided in accordance with the correct land use purpose stated in one of the following documents:
- The certificate of land use right issued in accordance with the law on land, or the land use purpose stated in one of the documents specified in article 50 of the 2003 Law on Land. If the land use purpose is not stated in such document, then it shall be the main use purpose of the land in conformity with land use zoning at the time of price determination of the land;
- The decision of the authorized State body allocating or leasing land or permitting conversion of the land use purpose;
- Registration for conversion of land use purpose in conformity with the law on land.
With respect to land for which no certificate of land use right or document specified in article 50 of the 2003 Law on Land has been issued; or if there is not yet any land use zoning or the land use zoning is available but has not yet been implemented; or if the land use right has not yet been registered, then the land price shall be determined in accordance with the current use purpose.
Where a land user has used all or part of a land parcel other than for the use purpose recognized by law or approved by the authorized body; or has used agricultural land comprising all types specified in article 13.1 of the 2003 Law on Land for intercropping or for joint ecological-environmental tourism business or has used non-agricultural land combined with other purposes, then the land use purpose as specified in the above certificate of land use right, decision of the State allocating or leasing land, land use zoning or planning, or registration of land use rights shall still be used as the basis for land price determination.
(b) Specific prices for locations of land of all land types shall be provided by provincial people's committees in Vietnamese Dong for one square metre unit (m2) and shall not fall outside the price framework and permitted limits for all types of land specified in article 1.5 of Decree 123, except as follows:
- If the actual land use right transfer prices for the following types of land are less than the minimum price level stipulated by the provincial people's committee pursuant to article 1.5 of Decree 123, then such people's committee may decide to apply a lower more appropriate price and at the same time send such decision to the Ministry of Finance for its inspection if it considers it necessary:
+ In a number of isolated cases where land prices have already been announced on 1 January in any one year, but the relevant regions are deep-lying and remote areas, plains, midlands or mountainous regions, or islands in which the natural and socio-economic conditions are difficult or especially difficult pursuant to standards stipulated by the State or by the provincial people's committee, and if there is no infrastructure or very poor infrastructure in such areas (including if they have been zoned as residential land or non-agricultural production and business land but there is not yet any infrastructure).
+ In the following cases:
* Where the State allocates land without collection of land use fees or leases land but not in the form of auctioning a land use right or tendering for a project using land;
* Where the State recovers land; or
* Where a State owned enterprise undergoing equitization chooses the form of land allocation: and for such land the provincial people's committee on 1 January issued land prices but at the time of allocating the land, or at the time of the decision recovering the land, or at the time of valuing the land for the purposes of equitization the price is inconsistent with actual market prices for assignment of land use rights in normal market conditions, then the provincial people's committee shall rely on such actual market prices within its locality and on the land price determination methods stipulated in this Circular in order to adjust the specific prices which it announced on 1 January (after obtaining the opinion of the standing committee of the provincial people's council).
- [In the above cases], The Department of Finance in any one province shall preside over co- ordination with other relevant departments and branches in order to fix specific prices for submission to the provincial people's committee to make the final decision; and in a case where experts or consultants are hired, such Department shall contact the other relevant departments and branches to evaluate the advice of the experts or consultants prior to submitting the proposed specific prices to the provincial people's committee, ensuring that they are as close as possible to actual market prices for assignment of land use rights in normal conditions.
- In the above cases, the prices shall not be subject to the restrictions stipulated in article 1.5 of Decree 123 but must not be higher than the actual market prices.
- The above provisions shall only apply to each isolated project, and are aimed at achieving the following objectives, namely calculation of land use fees when the State allocates land other than via an auction of a land use right or tendering for a project using land; calculation of the amount of compensation for loss after the State recovers land, and calculation of the value of a land use right on equitization of a State-owned enterprise which chooses the form of land allocation. In all other cases the specific prices stipulated by the people's committee as applicable to each land location within the region shall apply.
- The provisions in sub-clauses (d) and (dd) of article 1.10 of Decree 123 shall also apply when specifying land prices and announcing same on 1 January in any one year.
- In the case of rural residential land and non-agricultural land for production and business also within rural areas and lying in the special locations stipulated in article 1.10 dd [or e] of Decree 123, namely land lying next to a main road (highway or inter-provincial road) or lying next to a traffic hub, trade zone, tourist resort or industrial zone, then the provincial people's committee may stipulate a specific price for the best locations of the above-mentioned two types of land, consistent with the local markets prices for assignment of land use rights in normal conditions, but such price must not exceed 5 times the maximum price level in the framework for rural non-agricultural land for business and production stipulated by the Government in Lists 6 and 8 issued with Decree 123 (but excluding the 20% band stipulated in article 5.2 of Decree 123).
+ When the competent authority amends land use zoning or land use plans, if the market prices of land within such zoning has changed as compared with the prices announced on 1 January, then the provincial people's committee must also amend the prices of the land in accordance with current regulations for consistency.
+ When the competent authority issues a decision agreeing to a conversion of land use purpose, the provincial people's committee shall also amend the price framework in accordance with the latest regulations issued by the Government.
+ When the competent authority issues a decision upgrading an urban category, then the provincial people's committee must also adjust the land prices for consistency.
- In all of the above-mentioned cases of price adjustment within any one year, the provincial people's committee must first seek an opinion from the standing committee of the provincial people's council prior to issuing a decision.
(c) Determination of specific prices for each location of land of all types for which the Government provides a land price framework:
- With respect to land for planting annual crops, land for planting perennial crops, land for aquaculture and forest land for production, prices shall be determined for each location of land. Land of class 1 location shall be subject to the highest price, and land of subsequent classes shall be subject to lower prices.
Where crops or livestock of different kinds are raised in the above agricultural land of one type, there shall be only one uniform price provided for each location of land in the region in which a main crop or livestock is raised (for example land for rice cultivation in a region for planting annual crops); and land prices shall not be provided on the basis of different crops or livestock for the same land location of the same type of agricultural land in the same region.
- Land for salt production shall also be classified into locations, so that class 1 location shall have the highest price and the subsequent locations shall have a lower price.
- In the case of rural residential land and non-agricultural land for business and production in rural areas, the people's provincial committee shall also classify the land into locations for the three separate regions in the locality. The people's committee shall also formulate location coefficients, so that land of class 1 location in any one region shall have the highest price of land in such region, and land of a lower class 2 or 3 etc. in such region shall have lower prices and so forth.
- For these types of land, the people's committee must formulate specific criteria and make a decision on the number of classes of location of such land.
- In the case of urban residential land, and non-agricultural land for production and business in urban areas, the people's committee must provide land prices according to the type of each street in different urban categories.
Subject to the specific conditions in the locality, either of the following methods may be used for serial price determination for classes of land of each location:
+ The first method: Direct price determination for each location of land:
Serial price determination for each location of land shall be based on results of price determination of a number of specific land parcels of such location of land as follows:
For each location of land of a specific land type, select at least three parcels of land with different special characteristics and which are representative of the land in question. After that, determine a price for each land parcel using the price determination methods provided in Part I of this Circular and calculate the price for a land area unit (m2) of each land parcel.
The price for each location of land (calculated for a square metre) shall be fixed as the average price of prices of the land parcels selected as above.
+ The second method: Determining a price for land of class 1 location, then use land class coefficients to determine prices for the remaining classes of location.
The method of determining a price for land of class 1 location shall be carried out the same as a direct determination for each class of location in the first method.
A provincial people's committee shall, on the basis of the criteria for classifying land locations, formulate location coefficients for land price determination for each type of land in the region, and for each type of street or for each street on the following principle: Land at location 1 shall have a coefficient of 1, and land at subsequent locations shall have lower coefficients and shall be subject to lower prices.
The above location coefficient for land price determination of all the above-mentioned types of land is a ratio to compare the actual prevailing market prices for assignment of use rights of land at each location compared to location 1, or a ratio to compare the criteria of each land location.
Prices for all types of land which are calculated on the basis of the above land locations shall be calculated by way of multiplying the price fixed for land of class 1 location by the relevant coefficient for land price determination for each type of land.
For example: Assume that the price determining body is pricing residential land in street H in a special urban area in order to submit a plan on land prices to the provincial people's committee. Applying the land price determination methods, the price determining body has fixed the price of land of class 1 location at 54,000,000 Dong/m2. Land in street H is divided into four different locations; and based on the criteria for classifying locations of land and the actual prices of market assignments of land use rights in the area, the price determining body has formulated location coefficients for price determination for locations 1 to 4 in street H at 1; 0.45; 0.35 and 0.30 respectively, so that land prices for subsequent locations following location 1 shall be as follows:
Street H |
Location coefficients for price determination |
Pre-determined price for location 1 |
Prices for specific locations of land (1,000 Dong/m2) |
1 |
2 |
3 |
4 = 2x3 |
Location 1 Location 2 Location 3 Location 4 |
1.00 0.45 0.35 0.30 |
54,000 |
54,000 24,300 18,900 16,200 |
With respect to residential land and non-agricultural land used for production or business purposes in
towns and townships which have not yet been classified by the authority as an urban area and do not adjoin land which has already been classified into the urban area category, then upon specific land price determination, the price framework for residential land and non-agricultural land used for production or business purposes in urban areas of category IV shall be used for towns and of category V shall be used for townships, but not to exceed the prices of actual market assignments of land use rights in normal conditions at the time of the land price determination.
With respect to residential land and non-agricultural land used for production or business purposes in new urban areas which adjoin land which has already been classified by the authority into the urban area category, then upon specific land price determination, the price framework for residential land and non-agricultural land used for production or business purposes in adjoining urban areas or in the nearest neighbouring urban area shall be used, but not higher than the prices of actual market assignments of land use rights in normal conditions at the time of the land price determination.
(d) Specific price determination for types of land for which the Government has not provided any land price framework:
- With respect to protective forest land and specialized use forest land: Prices for protective forest land and specialized use forest land shall be determined on the basis of specific prices for forest land for production provided by the provincial people's committee. The procedures for price determination for protective forest land and specialized use forest land shall be carried out the same as for forest land for production specified in clause 2(c) of Part II of this Circular.
- Specific maximum prices for each location of protective forest land and specialized use forest land shall not exceed specific prices already provided by the provincial people's committee for each location of forest land for production.
- With respect to specialized use forest land
- With respect to other agricultural land as stipulated in clause 4(dd) of article 6 of Decree 181: Prices for other types of agricultural land shall be determined on the basis of specific land prices provided by the provincial people's committee for adjoining agricultural land types or for neighbouring areas in the same region (if there is no adjoining land).
Specific maximum land prices for each type of other agricultural land shall not exceed the specific [highest] price provided by the provincial people's committee for adjoining agricultural land types or for agricultural land in neighbouring areas.
- With respect to land for construction of offices of bodies and construction of works of professional institutions; land used for objectives of national defence and security; land used by religious organizations (comprising land used by religious organizations and land on which there are communal houses, temples, shrines, pagodas, worship halls and family shrines); and other non- agricultural land (including land on which there are museums, houses to preserve or display works of art, or houses of cultural and artistic compositions) the provincial people's committee shall, on the basis of prices of adjoining residential land or prices of land in the nearest neighbouring area (if there is no adjoining land) as already decided, and on the basis of the provisions in article 10.1 of Decree 123, determine the specific land price level. If the above types of lane are in rural areas, then land prices in such rural area shall be the basis; and if the above types of lane are in urban areas, then land prices in such urban area shall be the basis.
- Based on the special characteristics of each type of land (size of the land area, construction density, rights and obligations of the land user), the provincial people's committee shall issue an appropriate specific price for each location of the type of land mentioned above, which shall not be higher than the specific [highest] price provided for adjoining equivalent locations or for residential land in the nearest neighbouring area (if there is no adjoining land).
- With respect to land used for public purposes pursuant to Government regulations; and other types of non-agricultural land (including land for other private construction works which are not attached to residential land and which are not for business purposes; land with holiday homes, tents or farms for employees; urban land used for construction of sheds for planting purposes including the form of planting not directly on soil; for construction of pens to breed animals as permitted by law; for construction of stations and farms for agricultural, forestry, salt production and aquatic research and experiment; for construction of barns and buildings for family households and individuals to store agricultural produce, plant protection agents, fertilizer, machinery and other tools for agricultural production), the provincial people's committee shall, on the basis of prices of adjoining non- agricultural production and business land or such prices in the nearest neighbouring area (if there is no adjoining land) as already decided, and on the basis of the provisions in article 10.1 of Decree 123, determine the specific land price level.
Specific [maximum] land prices for each location of the types of land mentioned above shall not be higher than the specific [highest] price provided by the provincial people's committee for adjoining equivalent locations of non-agricultural land used for production or business purposes or for such land in the nearest neighbouring area (if there is no adjoining land).
- With respect to land used for cemeteries and graveyards, the provincial people's committee shall, on the basis of prices of types of adjoining land as already decided, determine the specific land price level. If there are many types of land in the adjoining area, then the type of land with the highest price should be taken.
Specific [maximum] land prices for each location of the type of land mentioned above shall not be higher than the specific [highest] price provided by the provincial people's committee for adjoining equivalent locations of such type of land.
- The price framework of land for cultivation of aquaculture products shall apply to land containing rivers, canals, channels, ditches, streams and specialized water surfaces for cultivation of aquaculture products; if such land is used for non-agricultural purposes or for non-agricultural purposes combined with cultivation and exploitation of aquaculture products, then the provincial people's committee shall, on the basis of prices of adjoining non-agricultural land or prices of non- agricultural land in the nearest neighbouring area (if there is no adjoining land) as already decided, and on the basis of the provisions in article 10.1 of Decree 123, determine the specific land price level.
3. Price determination for land in bordering areas:
(a) Prices for land in areas bordering provinces and cities under central authority:
- If the land in an area bordering provinces and cities under central authority has the same natural and infrastructure conditions, and the same current use purpose and the same use purpose pursuant to zoning, then price determination must be based on article 12.1 of Decree 188 and on article 9.1 of Decree 123.
- Before conducting price determination for land in bordering areas, provincial people's committees must consult and confer each other on the proposed prices to be published to ensure compliance with article 1.11 of Decree 123.
- Where local authorities fail to agree on a price for land in their bordering area, the matter shall be reported to the Prime Minister of the Government for his decision.
- If such land has different natural and infrastructure conditions, and a different current use purpose and different use purpose pursuant to zoning, then provincial people's committees shall decide a specific price for such land in the area bordering provinces and cities under central authority based on the actual conditions in each locality.
(b) Land prices for areas bordering districts, small towns and townships within provincial cities and cities under central authority:
- Subject to actual conditions in its locality, a provincial people's committee shall provide land prices for land in bordering areas in conformity with the following principle: the width4 of land shall be provided by the provincial authority and prices shall be the same if the natural and infrastructure conditions, the current use purpose and the use purpose pursuant to zoning are the same.
- Where the infrastructure conditions in a bordering area are not the same, then prices for land in such bordering area shall be determined on the basis of actual conditions of each area.
- With respect to residential land in rural areas surrounding an urban area (including communes adjoining the inner city, an inner township in a special urban area and category I urban area, and hamlets adjoining the inner city, and small towns in other urban areas), prices for land in these areas shall be determined on the principle of price determination for adjoining land parcels and on application of the price framework provided by the Government for the adjoining urban area.
- Provincial people's committees shall issue specific provisions on residential land prices in rural areas surrounding urban areas.
III. ORGANIZATION OF IMPLEMENTATION
1. Provincial people's committees shall, on the basis of the Law on Land 13-2003-QH11, Decree 188, Decree 123 and the guidelines provided in this Circular, determine specific land prices, announce them publicly, and inspect implementation of price lists within their localities.
2. Provincial people's committees shall allocate an annual sum from the local budget in order to carry out the investigation, survey and keeping statistics of prices for assignment of land use rights; shall engage consultants specialized in land prices and price determination of all types of land; shall hold training courses on implementation of decisions on land prices, and shall train officials engaged in management of land prices in their locality. Such budget funding shall be managed in accordance with the applicable State regulations.
A provincial people's committee shall direct its Department of Finance to organize a network in order to monitor and keep statistics of actual market prices for assignment of land use rights in the locality, and shall submit periodical reports to the Ministry of Finance in accordance with regulations. Where actual market prices for assignment of land use rights in a locality are constantly changed over a long period resulting in large price differences, such changes must be reported to the Ministry of Finance for submission to the Government to consider an adjustment of the price framework for all types of land.
3. This Circular shall be of full force and effect after fifteen (15) days from the date of its publication in the Official Gazette.
This Circular shall replace Circular 114-2004-TT-BTC of the Ministry of Finance dated 26 November 2004 providing guidelines for implementation of Decree 188.
People's committees are requested to report any problems arising during implementation of this Circular to the Ministry of Finance for guidance for resolution.
|
FOR THE MINISTER OF FINANCE |
EXAMPLE OF THE DIRECT COMPARISON METHOD
(Issued together with the Circular No. 145/2007/TT-BTC of the Ministry of Finance dated December 6, 2007)
Apply the direct comparison method to determine the land price (to make it simple and understandable, this example only presents the direct comparison method to determine the price of the land in question with one comparable land parcel or land block).
Assuming that in the course of determining the price of a residential land block of 20,000 m2 in a grade-V urban center (coded as land block B), the pricing agency has collected information on an adjacent land block of 25,000 m2 which is comparable with the land in question and already put up for a successful land use right auction for the construction of dwelling houses (coded as land block A), which took place in the period nearest the time of determining the price of land block B. The total money amount earned from the auction of land block A is VND 125 billion, with the unit price per square meter being VND 5 million (VND 5 million/m2).
With all collected information, the pricing agency compares land block A and land block B as follows:
Comparable criteria |
Similarities |
Differences |
||
|
Land block A |
Land block B |
Land block A |
Land block B |
1. Legal ground |
Having land use right certificate |
Having land use right certificate |
|
|
2. Use purpose |
Residential land in grade-V urban center |
Residential land in grade-V urban center |
|
|
3. Land location |
Location 1: Land with one frontage side close to street |
Location 1: Land with one frontage side close to street |
|
|
4. Street type |
Type 2 |
Type 2 |
|
|
5. Frontage width (m) |
|
|
100 |
70 |
6. Length of the land block |
|
|
250 |
285.7 |
7. Infrastructure - Road |
|
|
- Convenient (with 2 sides fronting big alleys |
- Less convenient (with 1 side fronting a big alley) |
8. Environment - Noise - Dust |
- Noisy |
- Noisy |
- Dusty |
- Less dusty |
7. Assets on land |
No |
No |
|
|
8. Trading status |
Voluntary |
Voluntary |
|
|
Through comparison, the pricing agency has drawn out 7 similar criteria and 4 different criteria between the two land blocks. To determine the difference between comparable elements of the land blocks in order to adjust the price, the pricing agency should apply the expert method in combination with the statistics method to calculate the coefficient of difference between the criteria.
It can use the method of marking using a point scale with the highest point 10 given to the criterion with the best conditions, (example, when taking location into consideration, the land occupying the best location shall be given 10 points; or when taking street grade into account, land lying in the street of the highest profitability and with the most convenient infrastructure shall be given 10 points). Other points under 10 shall be given to identical criteria with poorer conditions. Based on the practical situation, localities shall draw up point scales to determine specific prices:
- Frontage width of the land block Wider: |
10 points In land block A |
|
Narrower: 8 points In land block B |
|
|
- Length of the land block |
Shorter: 10 points |
In land block A |
Longer: 9 points |
In land block B |
|
- Road |
Convenient: 10 points |
In land block A |
|
Less convenient: 8.5 points |
In land block B |
- Dust |
Dusty: 8 points |
In land block A |
Less dusty: 9 points |
In land block B |
For every point less, the price of the comparable land block (A) shall be reduced by 5%; vice versa, for every point more, the price shall be increased by 5%. The number of points less or more and its corresponding percentage must totally depend on market survey results. With such assumption:
On the basis of the successful auction price, VND 125 billion, of the comparable land block A, used for determining the price for land block B, the price of land area B shall be reduced as follows:
- Frontage width: B is inferior to A: 2 points or 10% less = VND 12.5 billion.
- The land block’s length: B is inferior to A: 1 point or 5% less = VND 6.25 billion.
- Road: B is inferior to A: 1.5 point or 7.5% less = VND 9.375 billion.
The total price reduction due to B’s inferiorities to A: VND 28.125 billion
B shall be added with:
- Dustiness: B is superior to A: 1 point or 5% more = VND 6.25 billion
The total price increase due to B’s superiorities over A: VND 6.25 billion
Land block A’s price readjusted (coded A’) according to different elements of land area B shall be calculated as follows:
A’ = 125 - 28.125 + 6.25 = 103.125 (VND billion).
So, the unit price per square meter is:
VND 103,125 million : 25,000 m2 = VND 4.125 million/m2.
Similarly, it is assumed that the pricing agency additionally selects two land blocks C and D for comparison with land block B. On the basis of the results of analysis and comparison, it has been determined that land block C’s unit price already adjusted according to elements of land block B is VND 4.5 million/m2 and land block D’s adjusted unit price is VND 4.05 million/m2.
Land block B’s unit price is determined to be the average price of the three above adjusted prices:
(4.125 + 4.5 + 4.05) : 3 = 4.225 (VND million/m2).-
EXAMPLE OF THE INCOME-BASED METHOD
(Issued together with the Circular No. 145/2007/TT-BTC of the Ministry of Finance dated December 6, 2007)
Application of the income-based method to determine the prices of agricultural land under annual crops in commune A (a delta commune) of district C, province X in the Mekong River delta. The land field selected for price determination has an area of 4,000 m2, classified as land at location 3 and cultivated with three plain rice crops a year. The land pricing agency has conducted field investigations and surveys and collected data in three consecutive years as follows:
|
Unit of calculation |
Year 2004 |
Year 2005 |
Year 2006 |
Total annual paddy output |
kg |
6,500 |
6,000 |
7,200 |
Average sale price in 2006 (the year of land pricing) |
VND/kg |
2,500 |
2,500 |
2,700 |
Total income |
VND |
16,250,000 |
15,000,000 |
18,000,000 |
Cost |
VND/kg |
1,150 |
1,100 |
1,250 |
Production cost |
VND |
7,930,000 |
7,500,000 |
9,108,000 |
Interest rate for Vietnamese dong savings with a term of 12 months(*) |
% |
8.0 |
8.3 |
8.6 |
Note: (*) Assume that this is the annual average interest rate for savings with a term of 12 months at a commercial bank which has the highest interest rate for savings in the locality.
+ The total income of 3 years is VND 49,250,000/ha
+ The total production cost of three years is VND 24,538,000/ha.
+ The average annual net income is:
+ The average interest rate for Vietnamese dong savings with a term of 12 month at the state-run commercial bank is 8.3%/year.
+ The value of the paddy field of 4,000 m2 calculated according to the formula mentioned at Step 4, Section 2, Part I of this Circular is:
The estimated land value |
|
or » VND 24,811/m2
which is rounded up to VND 25,000/m2.-
EXAMPLE OF THE SUBTRACTION METHOD
(Issued together with Circular No. 145/2007/TT-BTC of the Ministry of Finance dated December 6, 2007)
The land pricing agency is determining the price of a residential land parcel of 90m2 (with a frontage width of 5m and a length of 18m, on which exists a four-story house) facing an internal road of 8m wide in a completely built new urban center in Hanoi capital.
The subtraction method is applied to determining the price of the above land parcel as follows:
Step 1: Through market surveys, the land pricing agency has collected information on several dwelling houses already sold and purchased in the above urban center which have a construction floor similar to the land in question.
To make it simple, this example only deals with one real estate among the successfully traded real estate, namely a house of 100 m2 (with four stories and a frontage with of 5m) lying adjacent to another road also of 8 m wide and crossing the road of the land in question. The selling price of the real estate (both house and land) in the successful transaction is VND 3,000 million. This house was sold 4 months ago. During these months, the land prices on the market are almost unchanged. However, the land in question is located at a more convenient location and in a better direction. So, the land in question has a unit price about 6% higher than that of the land parcel on which the successfully sold house exists.
Step 2: Through field and market surveys, the following data are collected:
- Construction area: 75 m2.
- The construction unit price of a house with similar quality and utilities on the market at the present time is VND 2.8 million/m2 floor (package unit price inclusive of the construction contractor’s profit).
- The house has been used for 12 years; its expected economic life is 70 years. Thanks to good maintenance and use, the house can be used for another 63 years.
Step 3: Determining the residual value of the house:
- Total construction floor area of the house: 75 m2 x 4 = 300 m2
- Cost of building a new house with similar area and utilities:
VND 2.8 million/ m2 x 300 = VND 840 million
- The value of wear is determined as follows:
+ Wear ratio: Apply the method of determining the wear ratio based on the house’s life:
The wear ratio |
= |
1 |
- |
The number of remaining years of using the house |
The economic life of the house |
+ The value of tangible wear: VND 840 million x 10% = VND 84 million
The residual value of the house:
VND 840 million - VND 84 million = VND 756 million
Step 4: Determining the price of the land parcel of the real estate
The value of the land parcel:
VND 3,600 million - VND 756 million = VND 2,844 million.
The unit price of the land parcel:
VND 2,844 million; 100 m2 = VND 28.44 million/ m2, which is rounded up to: VND 28.5 million/m2.
Step 5: Determining the price of the land parcel concerned
Adjust the unit price of the above real estate based on the land location difference to determine the land price of the to be- priced land parcel:
VND 28.5 million + (VND 28.5 million x 6%) = VND 30.21 million/ m2, which is rounded up to VND 30.5 million/m2.
Conclusion: The unit price of the land in question is about VND 30.5 million/m2.
EXAMPLE OF THE SURPLUS METHOD
(Issued together with Circular No. 145/2007/TT-BTC of the Ministry of Finance dated December 6, 2007)
The land in question has an area of 10,000 m2 in District X of a grade-I city. The State has leased this land block to an enterprise for industrial production. At the end of the contractual lease term, due to environmental pollution, the municipal People’s Committee has decided to lease to the enterprise land in an industrial park in the suburban area. It is intended that this land block will be allocated to a urban housing company to build infrastructure and houses for sale. At present, on the land block exists a production workshop of 6,000 m2 (one story, brick walls, steel frames, corrugated iron roof and cement floor.); according to experts’ evaluation, the residual quality is 30%.
According to construction regulations, for this project, the maximum percentage of land for building dwelling houses is 55%; the total construction area is 5,500 m2.
Under the project, it is allowed to be built a 12-story apartment building on a ground area of 3,000 m2; and divide a land area of 2,500 m2 for selling house foundations (with 25 lots, 100 m2 each).
Assume that the project will be completed in one year and the investor only has to pay compensation for the value of the workshop to the enterprise from which the land is recovered.
On the basis of the planning, the project’s detailed design and data supplied by the investor; through surveying and analyzing the real estate and construction markets, the land pricing agency has collected the following information:
- The unit price of construction of a new workshop with similar structures: VND 800,000/m2.
- Average cost of building infrastructure: VND 600,000/m2
- Cost of project designing and planning: VND 1,000 million.
- Average cost of building an apartment building: VND 3,000,000/m2.
- Cost of building water tanks, pump stations and standby generator to serve the apartment building: VND 1,000 million.
- Cost of dismantlement of the old workshop: VND 100 million and the value of recovered waster materials is equal to 20% of the residual value of the workshop.
- The investor has to borrow bank loans accounting for 60% of the construction cost at an annual interest rate of 10%.
- The advertisement and sale cost: 1% of turnover.
- Project management expense: 5% of the project’s total expense.
- The investor’s profit: 20% of the project’s total turnover.
- The average sale price of an apartment: VND 7 million/m2. The total area of apartments accounts for 80% of the total construction floor area of the apartment building; The divided land parcels are expected to be sold at VND 15 million/m2, which is exclusive of value added tax.
The surplus method is applied to determine the price of this land block as follows:
Step 1: Determining the best and most effective use purpose of the land block, that is for the residential purpose; of which the most reasonable structure is that 55% of the land block is for building a high-rise apartment building and the remaining 45% will be divided into smaller lots for sale.
Step 2: Estimating the total turnover
- Turnover from the sale of apartments:
(3,000 m2 x 12 x 80% x VND 7 million/m2 = VND 201,600 million
- Turnover from the sale of divided land lots:
2,500 m2 x VND 15 million/m2 = VND 37,500 million
Expected total turnover:
VND 201,600 million + VND 37,500 million = VND 239,100 million
Step 3: Estimating total expenses
- Cost of infrastructure:
10,000 m2 x VND 600,000/m2 = VND 6,000 million
- Cost of designing and planning = VND 1,000 million
- Cost of building the apartment building:
(VND 3,000 m2/story x 12 stories) x VND 3 million/m2 = VND 108,000 million
- Cost of building water tanks, pump stations and standby electricity generator to serve the apartment building: VND 1,200 million
- Cost of dismantlement of the old workshop: VND 100 million
- Compensation for the workshop
(6,000 m2 x VND 800,000/m2) x 30% = VND 1,440 million
- The recovered value of waste materials to be subtracted: VND 1,440 million x 20% = VND 288 million
- Advertisement and sale cost: 1% x VND 239,100 million = VND 2,391 million
Total direct construction expense: VND 119,843 million
- Bank loan interests to be paid
(VND 119,843 million x 60%) x 10% = VND 7,190.58 million
- Management expense: 119,843 million x 5% = VND 5,992.15 million
- The investor’s profit: VND 239,100 million x 20% = 47,820 million
Total of expenses and profit: VND 180, 845.73 million
Step 4: Determining the land price
The estimated value of the land block
VND 239,100 million – VND 180,845.73 million = VND 58,254.27 million, which is rounded up to: VND 58,000 million, or 5.8 million/m2
Conclusion: The value of the above land block is about VND 58 billion or 5.8 million/m2.