From August 15, 2025, according to Decree 226/2025/NĐ-CP, “the land price framework” – a legal tool that has existed for many years – will officially be abolished. Replacing it, the annual land price list of each locality will become an important legal basis, expected to more accurately reflect reality. This marks a major turning point of the 2024 Land Law, opening opportunities for transparency while also posing significant challenges for citizens, businesses and investors. So how will the removal of the land price framework affect the market? And what solutions help protect rights when conducting real estate transactions in this new period?
What is the land price framework? Meaning and role
The land price framework is the minimum and maximum price range issued by the Government for each type of land by region, on a 5-year cycle. For many years, the land price framework has served as a “reference baseline” for localities to develop specific land price lists.
The land price framework is used in many important activities:
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A basis for calculating taxes, fees and charges related to land.
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Determining compensation and resettlement support when the State recovers land.
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A reference for valuation activities when banks appraise collateral.
However, in reality, the land price framework often fails to keep up with market prices. In many localities, actual land prices are 3 – 4 times higher than the States framework, creating a large gap in compensation calculations and financial obligations. This leads to long-lasting complaints and disputes and causes a lack of transparency in transactions.
Therefore, abolishing the land price framework from 2025 is expected to help the land price management system better reflect market reality, creating fairness for citizens and businesses.
Why is the land price framework abolished from 2025?
According to the 2024 Land Law and Decree 226/2025/NĐ-CP, the land price framework will officially be abolished from August 15, 2025. The reasons stem from several limitations:
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Not keeping up with the market: The framework is adjusted every 5 years, while the market fluctuates monthly or even weekly.
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Causing inequality: When the State recovers land, citizens receive compensation far lower than the actual market value.
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Businesses struggle to estimate costs: The gap between the framework and market prices makes investment planning inaccurate.
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Potential for negative acts: The difference between State prices and actual prices creates loopholes for corruption and profiteering.
Replacing the framework, from 2025, annual land price lists will be issued by each locality, more closely reflecting market fluctuations. This is seen as an important step in land policy reform, but it also requires citizens and businesses to adapt quickly.
Impact of abolishing the land price framework on citizens and businesses
Removing the land price framework brings a series of multidimensional impacts:
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For citizens: When transferring land, the property value is appraised more accurately, increasing benefits. However, when paying taxes, fees, or when land is recovered, financial obligations may increase significantly.
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For businesses: Investment and project financial costs become more transparent, but risks rise as land prices fluctuate continuously. Real estate enterprises must update prices annually to create accurate plans.
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For banks and credit institutions: Only legally valid and transparent valuation reports are accepted to limit risks. This makes land valuation services mandatory in most major transactions.
Thus, removing the land price framework enhances transparency but also forces all parties to change their mindset, avoiding “emotional estimation” to minimize financial risks.
Land price framework and land price list: What’s the difference?
Although often confused, the land price framework and the land price list are two completely different concepts:
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Land price framework: Issued by the Government, serving only as guidance, setting minimum–maximum price ranges nationwide.
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Land price list: Issued by provincial People’s Committees, applied directly at the local level, directly affecting financial obligations, compensation and citizens’ rights.
Previously, land price lists were developed based on the land price framework. But from 2025, when the framework is abolished, the annual land price list will become the sole legal basis. This means all land-related transactions – from bank loans, transfers, to compensation for site clearance – depend on the local land price list.
This change is expected to make prices closer to the market, but also requires citizens and businesses to continuously update and seek support from professional valuation units to avoid risks.
Opportunities and challenges when abolishing the land price framework
Opportunities:
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Citizens receive compensation closer to market prices.
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Businesses can estimate costs more easily, reducing investment risks.
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The market becomes more transparent, limiting “virtual prices” and speculation.
Challenges:
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Land prices in major cities may rise, increasing pressure on housing.
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Businesses must continuously update the land price list to adjust plans.
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State agencies need transparent and timely data systems to reflect real prices.
Thus, abolishing the land price framework is not only an opportunity to make the market more transparent but also a test for the State, businesses and citizens in land management and real estate investment.
Hanoi and Ho Chi Minh City land price framework 2025 – Major changes
The two largest markets in the country – Hanoi and Ho Chi Minh City – will be most strongly affected when the land price framework is abolished:
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Hanoi: Central districts such as Hoan Kiem, Hai Ba Trung, Ba Dinh and Cau Giay are expected to see strong land price increases due to investment demand, infrastructure development and rapid urbanization.
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Ho Chi Minh City: Land prices in Thu Duc City and central districts will continue to rise, especially in areas with upgraded transportation infrastructure.
Updating the annual land price list becomes essential to ensure rights in transactions, loans and compensation for site clearance. With major fluctuations in these key markets, land valuation plays a crucial role in protecting the interests of individuals and businesses.
Land valuation – The optimal solution when the land price framework is abolished
In the context of abolishing the land price framework, “estimating based on intuition” poses major risks for citizens and businesses. This is when Hoang Quan Appraisal’s land valuation services prove their role:
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Accurate and transparent reports: Recognized by banks, credit institutions and State management agencies.
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Strong legal foundation: Serving loans, transfers, investment or compensation for land recovery.
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Experts with deep local insight: Understanding market fluctuations in each area.
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Technology and digital data application: Ensuring fast – accurate – cost-efficient results.
Hoang Quan Appraisal provides a wide range of services:
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Project land valuation for investors.
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Valuation of collateral assets for bank loans.
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Land valuation for legal, dispute and compensation purposes.
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Real estate valuation for tax purposes.
With more than 23 years of experience, Hoang Quan Appraisal is not only a valuation unit but also a companion, helping clients make safe and effective decisions amid all market fluctuations.
Contact Hoang Quan Appraisal now to receive accurate, transparent and market-aligned valuation reports.
Hoang Quan Appraisal Co., Ltd.
Address: Hoang Quan Appraisal System
Phone: 0934.252.707
Email: contact@sunvalue.vn
Facebook: Hoang Quan Appraisal
Website: hqa.com.vn
Conclusion
Abolishing the land price framework from 2025 is an important milestone, bringing transparency but also raising many challenges for the real estate market. In this new context, accurate land valuation becomes essential to protect rights and minimize risks. With proven capacity across tens of thousands of projects, Hoang Quan Appraisal is committed to providing transparent, fast and accurate valuation solutions, helping clients stay confident amid all land price fluctuations.
