Ministry of Agriculture and Environment warns of upcoming major fluctuations in land prices

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The Ministry of Agriculture and Environment (MARD) has just sent a report to the Ministry of Finance, serving the meeting of the Steering Committee for price management in the second quarter of 2025.

Accordingly, forecasting price developments for land price management and operation in the third quarter and the whole year of 2025, the Ministry of Agriculture and Environment said that removing the land price framework along with regulations on land price tables has helped manage land and develop the real estate market on the basis of transparent land prices and closer to the market.

However, during the implementation process, some localities have not promptly updated common land price fluctuations in the market, causing the land price list to not accurately reflect reality.

Along with that, in some localities there is a huge difference between the starting price and the winning auction price.

This situation can be exploited for profit through land auctions, causing market disruption if not strictly controlled.

The Ministry of Agriculture and Environment assesses that there will be large fluctuations in land prices when many localities issue new land price lists. Photo: Thach Thao

Regarding the new regulations of the 2024 Land Law and documents guiding the implementation of land prices, initial results show that the new policies have brought about effectiveness such as decentralization, delegation of authority to determine land prices, land price decisions...

However, many localities are still limited in human resources, experience, and confusion, so they have not promptly and fully issued detailed regulations, have not created a complete and synchronous legal corridor, and have not promptly resolved the requests of people and businesses in accessing land and resolving administrative procedures.

“In the coming time, many localities will issue new land price lists, there will be large fluctuations in the newly adjusted land prices. Each locality will have different adjustment ranges, so the real estate market will be affected a lot,” the Ministry of Agriculture and Environment noted.

Proposing land price management and operation in the third quarter and the whole year of 2025, the Ministry of Agriculture and Environment emphasized the need to monitor and promptly update land price fluctuations in the market, and at the same time gradually build a land price database for each plot of land.

According to the Ministry, in areas or locations where land price lists need to be applied but are not suitable to reality, the provincial People's Committee will adjust the land price lists based on legal regulations and specific local conditions, with the application period until December 31, 2025.

The adjustment of land price list is carried out according to the guidance in Article 17, Decree No. 71/2024/ND-CP of the Government . The Ministry also said that the regulations on land prices in this decree are expected to be amended and supplemented to be more suitable to reality.

In addition, it is necessary to review the provisions in a number of laws such as the Land Law, Housing Law, Real Estate Business Law and other related laws to assess the overall impact on housing and land prices.

“It is necessary to expand the scope and subjects of application of land price tables, while narrowing down the cases where specific land prices must be determined. Clearly define the responsibilities of each agency in the process of calculating financial obligations,” the Ministry of Agriculture and Environment recommended.

In particular, the Ministry of Agriculture and Environment believes that it is necessary to review the land price list issued under the 2013 Land Law to consider adjusting it to suit the actual situation of land prices in the locality. At the same time, prepare the necessary conditions to serve the construction of the price list under the 2024 Land Law, which will take effect from January 1, 2026.

The Ministry noted that the adjustment process must focus on analyzing and assessing impacts, have a suitable roadmap, determine appropriate areas and locations for each type of land, organize to collect opinions from relevant parties, and limit negative reactions and lack of consensus in society.

In this document, the Ministry of Agriculture and Environment also recommends strict handling of violations of regulations on land use rights auctions, preventing the exploitation of land auctions for profit, causing market disruption. To limit this situation, when organizing land auctions, localities must publicize planning, adjust land price lists, and publicize deposit-abandoning subjects.

In addition, cases of intentionally causing difficulties and slowing down the progress of housing projects; cases of tax evasion, false declarations of land transfer, violations in land use rights auctions, housing projects behind schedule, causing waste of land resources will be handled.