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Land valuation method to develop a land price list to help authorities determine land prices accurately and transparently, which is the basis for taxes, compensation, and real estate transactions. Thanks to these methods, such as direct comparison, deduction, income, and costs, land price lists are built in accordance with the market, creating favorable conditions for people and businesses. Let’s take a look at land valuation methods in the article below.
Land valuation principles are strictly regulated in Article 158 of the Land Law 2024, requiring all methods to comply with market principles, honesty, objectivity, openness and transparency. These principles ensure that the valuation process is not dominated by any party and that the interests between the State, land users and investors are balanced.
These principles create the foundation for building an accurate land price list, helping the State manage and plan land appropriately.
According to Article 158 of the Land Law 2024, each land valuation method has separate application conditions, depending on each specific situation and type of land.
These conditions ensure that each plot of land is valued according to the most appropriate method, avoiding discrepancies in the land value determination process.
The comparative method is the most common land valuation method. According to Article 4 of Decree 71/2024/ND-CP, the value of a plot of land will be determined by comparison with similar plots of land traded on the market.
This method provides direct insight from the market, helping land valuation to be closer to actual transactions.
The income method is specified in Article 5 of Decree 71/2024/ND-CP. This is a method of determining land value based on profitability from land use.
This method is especially useful for commercial, service or agricultural lands with a stable source of income.
The residual method is specified in Article 6 of Decree 71/2024/ND-CP, often applied to investment project land. This method is based on calculating the total development revenue of the land plot after deducting the total development costs.
This method is suitable for land valuation in projects with high development potential.
According to Article 7 of Decree 71/2024/ND-CP, the land price adjustment coefficient method is the use of the current land price list multiplied by the adjustment coefficient to determine the value of the land plot.
This method is often applied in cases where the State recovers land and calculates compensation.
Land valuation is a complex process, requiring extensive understanding of the law as well as the market. To receive detailed and professional advice on related issues, please contact via the hotline: 0906735386 for dedicated support.
Note: The content of the articles published on the website of Long Phan Investment Consulting Company is for reference only regarding the application of legal policies. Depending on the time, subject, and amendments, supplements, and replacements of legal policies and legal documents, the consulting content may no longer be appropriate for the situation you are facing or need legal advice on. In case you need specific and in-depth advice according to each case or incident, please contact us through the methods below. With our enthusiasm and dedication, we believe that Long Phan will be a reliable solution provider for our clients.
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