Real Estate Planning Principles

Real estate planning principles regulate asset value fluctuations in the market. Establishing technical indicators and urban development spaces helps entities implement investment plans according to local socio-economic roadmaps. Long Phan Consulting Company analyzes the regulations on planning principles and the practical relationship between planning and property value below.

Principles of land use planning regarding real estate value

The planning process must align with the system consistency principle to ensure land management unity and maximize real estate potential.

The principle of planning system consistency: Lower-level plans must be consistent with higher-level plans.

Article 60 of the Land Law 2024 outlines the real estate planning principles regarding land use:

• Compliance with principles and relationships between planning types under the Planning Law.
• Synthesis and balance of land use demands across sectors and fields.
• National land use planning must ensure regional connectivity, balance between sectors and localities, and align with national land potential for efficient use.
• Planning at national and provincial levels must meet socio-economic development strategies and national defense requirements.
• Lower-level planning must align with higher-level planning; land use plans must match approved land use planning of the same level.
• Content must combine land use indicators with space, usage zoning, and natural ecosystems.
• Efficient land use, reasonable resource exploitation, environmental protection, climate change adaptation, and national food security preservation.
• Continuity, inheritance, stability, and harmony between sectors, generations, and land potential.
• Guarantee of participation from socio-political organizations, communities, and individuals; assurance of transparency.
• Higher-level planning approval precedes lower-level planning. Unused indicators continue until the next period’s planning approval.
• Land use plans occur simultaneously with land use planning adjustments of the same level.

Principle of openness and transparency – Planning documents, once approved, must be publicly disclosed.

Based on Article 41 of the 2025 Planning Law, the requirements for public disclosure of planning documents are as follows:

• Planning documents must be published and made public after being decided or approved by the competent authority or person, except for contents classified as state secrets as stipulated by the law on the protection of state secrets.
• The publication and disclosure of planning documents must adhere to principles such as: timeliness, completeness, convenience, ensuring access for organizations and individuals; verification, ensuring integrity and security, and cybersecurity; and synchronization with the national planning information system.

• The government specifies the deadlines for publishing and disclosing national-level, regional, and provincial-level planning. The deadlines for publishing and disclosing detailed sectoral plans, urban plans, and rural plans shall comply with relevant laws.

Land users have the right to:

According to Clauses 1 and 2 of Article 60 of Decree 101/2024/ND-CP, citizens who need information about cadastral maps can directly submit a request form according to Form No. 13/DK issued with Decree 101/2024/ND-CP or send a written request to the cadastral map provider to:

• Access to planning information;
• Request for extracts and planning maps.

Practical significance:Many transactions are voided or disputes arise because buyers are not provided with complete planning information.

Principles for ensuring the legitimate rights and interests of land users.

Article 41 of the Planning Law requires public announcement of planning after approval, excluding state secrets.

• Announcements must be timely, complete, accurate, and synchronized with the national planning information system.
• The Government details timelines for national, regional, and provincial planning announcements.

According to Article 60 of Decree 101/2024/NĐ-CP, land users may submit Request Form No. 13/ĐK to:

• Access planning information.
• Request planning extracts or maps.

Principles of sustainable development

According to the Sustainable Development Goals (SDGs) adopted by the United Nations, the following regulations apply:

• The principle of sustainable development is a harmonious combination of economic, social, environmental, and defense-security aspects, aiming to meet present needs without compromising the capabilities of future generations, ensuring equity between generations and among members of society.
• This principle ensures that economic growth goes hand in hand with environmental protection and social equity, efficient resource use, respect for ecological limits, and global responsibility.

Therefore, not every good plot of land is zoned for residential or commercial use.

The principle of relative stability but with adjustments.

Article 17 of the Land Law 2024 states the State guarantees legal rights of land users during planning.

• Protection of legal land use rights and attached assets.
• Non-recognition of reclamation demands for land allocated under previous state policies.
• Planning must not infringe on related parties’ legal interests. Rights restrictions (construction bans, purpose conversion limits) require compensation and resettlement support under Article 108 of the Land Law.

The impact of urban planning on real estate values.

Placed within the context of the relationship between management policies and the market, the effects of planning on real estate values ​​are demonstrated through:

Urban planning increases the value of real estate.

The United Nations Sustainable Development Goals (SDGs) dictate a balance between economy, society, environment, and defense.

• Meeting current needs without compromising future generations.
• Ensuring economic growth alongside environmental protection and social equity.

Urban planning reduces the value of real estate.

Inadequate or inconsistent planning can diminish property values, as restrictions on land use, infrastructure, or living environment make properties less attractive and less productive. Some typical examples include:

The land is located within:

• Corridor for protecting public works;
• Planning for green spaces, parks, and transportation;
• Land subject to suspended planning (not implemented for many years);

Property is restricted:

• No new construction is allowed;
• Repairs are only permitted for a limited time.

Consequences: The value of the resource is drastically reduced, making it difficult to transfer ownership or use as collateral.

Planning affects the ability to conduct transactions.

Another inevitable consequence to consider is how planning affects transactionability; the more stable and consistent the planning, the higher the liquidity of real estate, and vice versa. This is illustrated by several examples such as:

• Typical bank practices: Refusing loans; reducing loan-to-value ratios for properties located in high-risk zoning areas.
• Buyers tend to: Negotiate prices; demand higher commitments.

Planning affects compensation when land is expropriated.

Planning plays a crucial role in determining compensation levels when the State acquires land. In reality, compensation prices are not based on market value, but rather on several other factors such as:

• The intended use of the land at the time of acquisition;
• Land price table, adjustment coefficient.
• Land that has been planned but not yet reclaimed: Compensation will still be provided, but the compensation amount may be lower than people’s expectations.

>>>See more: Land Use Planning Verification Service

Practical tips for real estate investors and traders.

Investors wishing to conduct real estate transactions should carefully check the zoning plan and clarify the following:

• What type of planning is it (land use, construction, urban planning)?
• What is the planning scale (1/500 – 1/2000 – 1/5000)?
• Is the plan already approved or is it just a draft?

In addition, distinguishing between different types of planning also plays an important role in transactions. For example:

• A suspended plan is different from a plan that is about to be implemented.
• Road construction planning is different from urban renewal and expansion planning.

These two concepts lead to completely different economic values.

>>>See more: New Construction Permit for Grade III, IV Works and Individual Houses

Long Phan Consulting’s real estate consulting and brokerage services.

Long Phan Consulting specializes in providing comprehensive consulting services, helping clients control risks and optimize profits in real estate transactions. We focus on analyzing technical indicators in planning projects and offering the most optimal transaction options.

Below are the in-depth planning consulting services that Customers can refer to the following:

• Check and verify the planning status of the property;
• Define planning boundaries, road boundaries, and safety corridors for technical infrastructure;
• Verify the consistency between the land use plan and the 1/500 detailed construction plan;
• Analyze the impact of planning on property values;
• Consultation on changing land use purpose in accordance with the latest planning regulations;
• Providing advice on compensation and resettlement options when the State acquires land, ensuring maximum benefits based on market land prices;
• Providing support in obtaining construction permits or local planning adjustments for investment projects.

If you require detailed advice on the impact of planning regulations on your specific project or wish to verify the most accurate planning information, please contact us for expert consultation on the issues you are facing.

Frequently asked questions about planning principles and the impact of planning on real estate values.

Below are some frequently asked questions about planning principles and the impact of planning on real estate values. Please refer to them:

How is the land use planning period defined?

Legal basis: According to Article 62 of the 2024 Land Law, the land use planning period is stipulated as follows:

• The timeframe and vision for national land use planning, defense land use planning, and security land use planning shall be implemented in accordance with the provisions of the Planning Law.
• The timeframe and vision for provincial-level land use planning are consistent with the timeframe and vision of the provincial planning.
• The planning period for national land use plans and provincial land use plans is 5 years.

In summary, the land use planning period is specifically defined according to each planning level, with the aim of ensuring consistency and compatibility between land use plans at different levels.

What kind of support do people receive when the government reclaims their land?

According to Clause 1, Article 108 of the 2024 Land Law, when the State reclaims land, people are entitled to the following support:

• Support for stabilizing livelihoods;
• Support for stabilizing production and business operations;
• Assistance with relocating pets;
• Support for training, career transition, and job search;
• Resettlement support is provided for cases stipulated in Clause 8, Article 111 of the 2024 Land Law;
• Support for dismantling, demolishing, and relocating as stipulated in Clause 3, Article 105 of the 2024 Land Law.

What is the red line boundary and how does it affect the building area?

The red line boundary is a boundary line defined on planning maps and in the field to delineate the boundary between land designated for construction and land reserved for roads, infrastructure, or other public spaces.

According to Clause 6, Article 3 of the 2014 Construction Law, as amended and supplemented in 2020, the building boundary is the line that limits the permitted construction of the main building on the land plot.

Why is urban planning an effective tool against real estate speculation?

The planning clearly defines the development roadmap and land supply, helping to increase market transparency and limit the spread of false information creating “land fever” in areas not designated for residential development.

Conclusion

Understanding real estate planning principles protects legal rights and investment capital. Long Phan Consulting Company assists clients with planning verification and legal representation. Contact Hotline 1900636389 for immediate expert support.