RESEARCH ON RESIDENTIAL LAND PRICE FLUCTUATIONS IN CHỢ CHU TOWN, ĐỊNH HÓA DISTRICT, THÁI NGUYÊN PROVINCE FROM 2020 TO 2022

RESEARCH ON RESIDENTIAL LAND PRICE FLUCTUATIONS IN CHỢ CHU TOWN, ĐỊNH HÓA DISTRICT, THÁI NGUYÊN PROVINCE FROM 2020 TO 2022

RESEARCH ON RESIDENTIAL LAND PRICE FLUCTUATIONS IN CHỢ CHU TOWN, ĐỊNH HÓA DISTRICT, THÁI NGUYÊN PROVINCE FROM 2020 TO 2022

RESEARCH ON RESIDENTIAL LAND PRICE FLUCTUATIONS IN CHỢ CHU TOWN, ĐỊNH HÓA DISTRICT, THÁI NGUYÊN PROVINCE FROM 2020 TO 2022

Trần Thị Mai Anh

Vũ Thị Thanh Thủy

Nguyễn Đình Thi

Thái Nguyên University of Agriculture and Forestry

Dương Anh Quân

Hanoi University of Mining and Geology

Abstract:

Chợ Chu Town is the cultural center of Định Hóa District, Thái Nguyên Province. In the period from 2020 to 2022, the land prices as stipulated by the State in Chợ Chu Town, Định Hóa District experienced fluctuations in an upward direction but remained significantly lower than market prices. The research utilizes survey methods to collect data on land prices according to the land price table and actual market land prices, thereby evaluating and identifying the factors affecting land prices in Chợ Chu Town, Thái Nguyên Province.

The research results show that during the period from 2020 to 2022, the actual market land prices in Chợ Chu Town increased by 1.12 – 1.53 times, while land prices according to the land price table did not experience significant fluctuations, with the adjustment coefficient increasing by 1.10 times. This research provides a database to assist policymakers in adjusting the State’s land price table to be closer to market prices.

Keywords: Land price table, land prices, planning, Chợ Chu Town.

I. INTRODUCTION

Land prices are a powerful tool in land financial policy [1], ensuring a stable long-term revenue source for the state budget and the development of the real estate market. The government stipulates the method for determining land prices and the land price table, as well as the regulation on adjusting the land price table under the authority of provincial and municipal People’s Committees [2-4].

Accordingly, land prices are influenced by factors such as population, society, international aspects, economy, region, and individual cases [5]. In reality, land prices regulated in the land price tables in localities across the country are much lower than actual market prices. The land prices according to the land price table are often only 20-60% of market prices, especially during “land fever” periods [6,7].

Định Hóa is a district located in the northwest of Thái Nguyên Province. In recent years, along with the overall development pace of the province, Định Hóa District has seen significant changes, with infrastructure being invested and upgraded through land-related investment projects. Particularly, in the period from 2020 to 2022, land prices in Chợ Chu Town, Định Hóa District experienced numerous fluctuations.

Despite being high compared to other areas within the district, the regulated prices were still significantly lower than market prices [8]. Additionally, some regulations on land prices are not yet suitable for reality, causing losses for the state budget. Therefore, the issue of evaluating land price fluctuations to improve state financial management of land requires studies on land prices to identify specific causes, thereby proposing suitable solutions to enhance the effectiveness of land financial management tools.

II. RESEARCH METHODOLOGY

  1. Secondary data collection methods

Collecting documents and data on natural, economic, and social conditions, especially documents related to land prices in Chợ Chu Town and legal documents related to land valuation in Chợ Chu Town during the period from 2020 to 2022.

  1. Primary data collection methods

Subjects of data collection: Actual residential land prices in Chợ Chu Town, Định Hóa District, Thái Nguyên Province and land prices according to the land price table issued by Thái Nguyên Province.

Scope of data collection: Based on the prices regulated by the People’s Committee of Thái Nguyên Province and the actual conditions of Chợ Chu Town, select representative areas and streets (12 representative streets, divided into 4 areas) that reflect the economic and social development and land prices of Chợ Chu Town, as specified in Table 1.

Table 1. Distribution of streets by area in Chợ Chu Town

Area

Street

Road Segment

I

(Streets 1,2,3)

Street 1

From the turn to Bãi Á 2 Hamlet to 50m past the district center intersection; From 50m past the district center intersection to 50m past the Lương Thực intersection going towards Kim Sơn Commune and towards Thái Nguyên; From 50m past the Lương Thực intersection to the end of Petrol Station No. 22.

Street 2

Road from the district center intersection to the Memorial Monument; From the district center intersection to the district People’s Committee gate;

From the district People’s Committee gate to the Memorial Monument intersection; From the district center intersection to Tân Thành Street.

Street 3

Road from the Trung Kiên Street intersection to the old Chợ Chu Market Banyan Tree to Ba Ngạc Bridge (urban road).

II

(Streets 4,5,6)

Street 4

From Ba Ngạc Bridge to the turn to Thâm Tý Hamlet, Bảo Cường Commune; From the turn to Thâm Tý Hamlet, Bảo Cường Commune to the turn to Bãi Á 2 Hamlet; From Petrol Station No. 22 to 50m past the Nà Lài Hamlet intersection.

Street 5

Concrete road from the District General Hospital gate to the urban ATK road junction (towards Gốc Găng Bridge).

Street 6

Street 6: Road segment from National Highway 3C passing Tân Lập Market to the new Tax Department intersection.

III

(Streets 7,8,9)

Street 7

From 50m past the Nà Lài Hamlet intersection to the turn to Nà Lài Hamlet (turn to Mr. Thình’s house); From the turn to Nà Lài Hamlet to the turn to Ao Nặm Cắm.

Street 8

From National Highway 3C to Bãi Á 2 Hamlet; Concrete road turning to the District Party Committee.

Street 9

From National Highway 3C to Hợp Thành Hamlet; Road from the Trung Kiên Street intersection to the District General Hospital to National Highway 3C; Planned roads in the resettlement area of Trường Hamlet and Dốc Trâu Hamlet.

IV

(Streets 10,11,12)

Street 10

Concrete road in Hồ Sen Hamlet; From the turn to Ao Nặm Cắm to Km20 + 600 (bordering Kim Sơn Commune).

Street 11

Road from Gốc Sung Bridge to Hang Pagoda – Đồng Chùa Hamlet.

Street 12

Other roads within Chợ Chu Town.

Source: People’s Committee of Thái Nguyên Province, 2019 [8]

Interview method: Conduct random interviews using a pre-prepared questionnaire. The collected information focuses on households and individuals involved in residential land transactions and owning residential land on representative streets in the total number of streets in Chợ Chu Town (as detailed in Table 1) as follows:

Sample size:

30 household samples per area, including representative street groups. Sampling method: random. Total number of samples: 120 samples.

10 samples for subjects who are officials working in management agencies related to the research topic in the locality.

Information and data processing method:

The statistical method is used to process the survey data collected during the research process; Excel software is used to process, summarize, analyze data, and evaluate.

III. RESEARCH RESULTS AND DISCUSSION

  1. Investigation results of residential land prices in Chợ Chu Town, Định Hóa District from 2020 to 2022

Through the investigation and survey process in the study area, it is evident that actual market residential land prices fluctuate annually and across different areas and streets, with varying degrees of fluctuation depending on numerous factors.

In 2020, the market land prices in area I ranged from 7.95 million VND/m2 to 13.00 million VND/m2; in area II from 7.60 million VND/m2 to 10.90 million VND/m2; in area III from 4.98 million VND/m2 to 8.54 million VND/m2; and in area IV from 1.80 million VND/m2 to 4.40 million VND/m2. The highest market land price was 13.0 million VND/m2 on the street from the turn to Bãi Á 2 Hamlet to 50m past the district center intersection.

Compared to the land prices according to the land price table, the highest market land price was 2.44 times higher than the highest land price regulated by the State in Street 8: “from National Highway 3C to Bãi Á 2 Hamlet and the concrete road turning to the District Party Committee”. The lowest difference in residential land price was 1.73 times higher in Street 9: “from National Highway 3C to Hợp Thành Hamlet; from the Trung Kiên Street intersection to the District General Hospital to National Highway 3C; Planned roads in the resettlement area of Trường Hamlet and Dốc Trâu Hamlet”.

By 2022, the market land prices in area I ranged from 10.50 million VND/m2 to 18.00 million VND/m2; in area II from 8.94 million VND/m2 to 16.00 million VND/m2; in area III from 5.25 million VND/m2 to 12.76 million VND/m2; and in area IV from 2.60 million VND/m2 to 6.00 million VND/m2.

The highest market land price was 18.00 million VND/m2 on streets: from the turn to Bãi Á 2 Hamlet to 50m past the district center intersection; from 50m past the district center intersection to 50m past the Lương Thực intersection going towards Kim Sơn Commune and towards Thái Nguyên; from 50m past the Lương Thực intersection to the end of Petrol Station No. 22.

Compared to the land prices according to the land price table, the highest actual market land price was 3.31 times higher than the highest land price regulated by the State in Street 8: “from National Highway 3C to Bãi Á 2 Hamlet and the concrete road turning to the District Party Committee”. The lowest difference in residential land price was 1.76 times higher in Street 9: “from National Highway 3C to Hợp Thành Hamlet; from the Trung Kiên Street intersection to the District General Hospital to National Highway 3C; Planned roads in the resettlement area of Trường Hamlet and Dốc Trâu Hamlet”.

  1. Evaluation of residential land price fluctuations in Chợ Chu Town, Định Hóa District from 2020 to 2022

From 2020 to 2022, the actual market residential land prices in Chợ Chu Town increased by 1.12 to 1.53 times, depending on the infrastructure and street quality. Among them, the street from Ba Ngạc Bridge to the turn to Thâm Tý Hamlet, Bảo Cường Commune; from the turn to Thâm Tý Hamlet, Bảo Cường Commune to the turn to Bãi Á 2 Hamlet; from Petrol Station No. 22 to 50m past the Nà Lài Hamlet intersection had the highest fluctuation rate of 1.53 times.

Additionally, in Area III, the street with the most significant disparity between regulated land prices and market prices was Street 8. The values of these land plots had the largest differences of 2.25 times and 3.07 times in 2020 and 2022, respectively. The reason for this significant disparity is that although the plots are located on concrete roads ranging from 3-5m, they are in residential areas, suitable for the budgets of many families needing to build houses, especially young couples, officials, and civil servants.

 

 

 

Figure 1. Average residential land price disparity chart by street in Chợ Chu Town, Định Hóa District, Thái Nguyên Province from 2020 to 2022

Comparison of streets from Street 1 to Street 7 shows that the price disparity remained stable. Residential land on these streets in Areas I and II has mostly been used stably for a long time. Meanwhile, the streets in Areas III and IV experienced more significant fluctuations, especially in Streets 8, 9, 10, and 11.

These streets are in the process of being completed, so the market land prices on these streets fluctuated more strongly. From 2020 to 2022, the land prices according to the state-regulated land price table remained relatively stable, with a 1.1 times adjustment ratio increase in 2022 compared to 2020. This highlights the issues in the land valuation process according to the state-regulated land price table and the market land prices.

Comparison of land prices on Streets 8 and 11 before and after the completion of projects and putting them into use shows the following:

Street 8: From National Highway 3C to Bãi Á 2 Hamlet; Concrete road turning to the District Party Committee. Previously, before expansion planning and asphalt paving, the average land price according to state regulations in 2020 was 3.00 million VND/m2; in 2022 it was 3.30 million VND/m2. The average market land price in 2020 was 6.76 million VND/m2; in 2022 it was 10.13 million VND/m2.

Street 11: Road from Gốc Sung Bridge to Hang Pagoda – Đồng Chùa Hamlet. Previously, before expansion planning and asphalt paving, the average land price according to state regulations in 2020 was 1.65 million VND/m2; in 2022 it was 1.82 million VND/m2. The average market land price in 2020 was 3.64 million VND/m2; in 2022 it was 4.88 million VND/m2.

IV. CONCLUSION

In 2020, the highest market land price was 13.00 million VND/m2. Compared to the land prices according to the land price table, the highest market land price was 2.44 times higher than the highest land price according to the land price table on Street 8, with the lowest disparity being 1.73 times higher on Street 9. By 2022, the highest market land price was 18.00 million VND/m2. Compared to the land prices according to the land price table, the highest actual market land price was 3.31 times higher than the highest land price regulated by the State on Street 8, with the lowest disparity being 1.76 times higher on Street 9.

Comparison of streets from Street 1 to Street 7 shows that the price disparity remained stable. Residential land on these streets in Areas I and II has mostly been used stably for a long time. Meanwhile, the streets in Areas III and IV experienced more significant fluctuations, especially in Streets 8, 9, 10, and 11.

References

  1. Quốc hội (2013). The 2013 Law on Land No. 45/2013/QH13, issued on November 29, 2013.
  2. Bộ Tài chính (2004). Circular No. 114/TT-BTC of the Ministry of Finance dated November 26, 2004, guiding the implementation of Decree No. 188/2004/NĐ-CP dated November 16, 2004, of the Government on the method of land price determination and the land price table.
  3. Bộ Tài nguyên & Môi trường và Bộ Tài chính (2010). Joint Circular No. 02/2010/TTLT-BTNMT-BTC dated January 8, 2010, of the Ministry of Natural Resources and Environment and the Ministry of Finance guiding the construction, appraisal, issuance of the land price table, and adjustment of the land price table under the authority of provincial and municipal People’s Committees.
  4. Bộ Tài nguyên & Môi trường (2014). Circular No. 36/2014/TT-BTNMT dated June 30, 2014, of the Ministry of Natural Resources and Environment detailing the method of land valuation; construction and adjustment of the land price table; specific land valuation and consultancy for land price determination.
  5. Hồ Thị Lam Trà & Nguyễn Văn Quân (2006). Textbook on Land Valuation. Agricultural Publishing House, Hanoi.
  6. Nguyễn Văn Bình, Hồ Kiệt, Hồ Nhật Linh, Đỗ Đình Ngoan (2018). Study on factors affecting land prices in Biên Hòa City, Đồng Nai Province. Journal of Agriculture and Rural Development, 14/2018: 144-155.
  7. Nguyễn Thị Huệ, Nguyễn Văn Quân, Xuân Thị Thu Thảo, Nguyễn Sỹ Hà (2022). Residential land price fluctuations in Từ Sơn City, Bắc Ninh Province from 2017 to 2021. Journal of Forestry Science and Technology, 6 – 2022: 121-130.
  8. People’s Committee of Thái Nguyên Province (2019). Decision No. 46/2019/QĐ-UBND dated December 20, 2019, of the People’s Committee of Thái Nguyên Province promulgating regulations on the land price table for the period 2020–2024 in Thái Nguyên Province.

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