HCMC Promotes Land Valuation: Striving to Ensure Fiscal Revenue and Boost Real Estate Development

In the fourth quarter of 2024, the Ho Chi Minh City Department of Natural Resources and Environment proposed that the City Land Valuation Council review 22 real estate projects, with an estimated total value of approximately VND 25,483 billion. This move aims to secure essential fiscal revenue for the city in the coming year, particularly from land parcels that are required to pay land use fees. The valuation of these projects and the collection of land use fees will not only contribute positively to the fiscal balance of the city but also create favorable conditions for the unified and rapid implementation of these projects, thereby meeting the increasingly urgent needs for urban development.

Among these projects, Thủ Thiêm Eco Smart, invested by South Korea's Lotte Group, holds the largest financial obligation, estimated at VND 16,000 billion. This is a large-scale ecological smart complex located in the new urban area of Thủ Thiêm, covering an area of 50,000 square meters. Although the project broke ground in September 2022 and planned an investment of around USD 900 million (equivalent to VND 22,500 billion), its progress has encountered significant obstacles due to unresolved financial obligations. This underscores the importance of promptly resolving financial procedures to ensure key projects can proceed as scheduled, thereby contributing to the overall development of the Thủ Thiêm area—an area of strategic importance in Ho Chi Minh City's urban development process.

Apart from Lotte Group, many other projects also need to fulfill significant financial obligations. An example includes the 14.8-hectare land parcel in An Phú Ward, Thủ Đức City, invested by Nguyên Phương Real Estate Joint Stock Company, which is required to pay VND 3,500 billion. This land holds great potential for urban development, and completing the financial obligations is a prerequisite for the project to proceed with its construction process. Other notable projects include the land at 230 Nguyễn Trãi, District 1, of N.T.N Trung Thủy Real Estate Co., Ltd., which must pay over VND 3,286 billion, and the Diamond Riverside high-rise apartment project in District 8 of Năm Bảy Bảy Investment Joint Stock Company, with financial obligations amounting to VND 729 billion. These projects are located in strategic areas and have significant economic value potential, which contributes to enriching Ho Chi Minh City's real estate market.

Notably, two projects related to Novaland Group have completed their financial obligations, including Tropic 1 in Thảo Điền Ward and another project in Phước Long B Ward, Thủ Đức City. These projects are currently undergoing land valuation procedures to calculate financial deductions before changing land use purposes. This demonstrates the efforts of businesses in complying with legal regulations and meeting necessary requirements to continue project implementation. Such progress not only helps accelerate project development but also enhances the transparency of the real estate market, which is crucial in building trust among homebuyers and investors.

In recent times, many real estate projects in Ho Chi Minh City have faced difficulties in paying land use fees, resulting in the inability to complete construction permits or issue property titles to homebuyers. This has led to stagnation in urban development and has made it difficult for many homebuyers to ensure their rights. According to a report from the Department of Natural Resources and Environment, the city currently has about 200 files, with approximately 80,000 plots of land and apartments that have not yet been granted property titles due to incomplete land valuation procedures. The inability to determine land prices has caused considerable difficulties for developers in raising capital, advancing projects, or transferring properties. Therefore, addressing these obstacles is essential for stimulating the stability and sustainable development of the real estate market.

At the recent September socio-economic routine meeting, Chairman of the Ho Chi Minh City People's Committee, Phan Văn Mãi, emphasized the importance of resolving difficulties, especially concerning financial obligations for large projects, to ensure progress and enhance the city's fiscal revenue. He also affirmed that resolving issues related to financial obligations would create new momentum for the real estate market, encouraging investors to continue committing capital to the city. To achieve this goal, the city government has formulated specific measures, such as strengthening coordination between departments, improving the land valuation process, and shortening the approval time for administrative procedures. These measures are expected to help accelerate project implementation while enhancing transparency and fairness in the land valuation process.

This indicates that the Ho Chi Minh City government is determined to address existing challenges, creating favorable conditions for real estate projects to continue development and contribute to the city's prosperity. Improving the land valuation process not only helps expedite and make transparent the collection of land use fees but also facilitates projects to quickly complete legal procedures and proceed with construction. This contributes not only to increasing fiscal revenue but also plays a vital role in improving urban infrastructure, creating housing opportunities, and enhancing the quality of life for city residents. This is the core goal that Ho Chi Minh City is striving for, aiming to build a modern, dynamic, and livable city for the future.