PROFESSIONAL LAND LEASE APPRAISAL: RIGHT PRICE, RIGHT TIME

Land lease appraisal is an important step to ensure reasonable and fair prices in real estate transactions. This requires careful analysis and application of professional valuation methods to accurately reflect the actual value of the land. Therefore, the demand for land rental valuation is currently attracting a lot of customers because of its high accuracy.

Popular forms of land lease today

Land lease valuation is the process of determining the reasonable rental value for a specific piece of land over a certain period of time. This is a complex process, requiring a deep understanding of the real estate market, factors affecting land value, as well as relevant legal regulations.

Land lease is a popular form of land use and exploitation, especially in agriculture and industry. There are many different forms of land lease, each with its own characteristics and conditions.

Leasing agricultural land
Agricultural land is often leased for cultivation, planting or raising livestock. Agricultural land lease contracts are usually short-term, from a few years to a few decades, depending on the type of crop or agricultural activity. With this form, the lessee must comply with regulations on land use and environmental protection.

Land lease in industrial parks
Land in industrial parks is often leased to build factories, warehouses or production facilities. The land lease term here is often longer, from 50 to 70 years, to ensure stability for large investment projects.

Land lease auction
Land lease auction is a form in which the right to lease land is granted to the highest bidder in a public auction. This form ensures transparency and fairness in land allocation. In addition, the term and conditions of land lease will be clearly specified in the contract after the auction is successful.

Land lease with annual payment, one-time payment
For the form of land lease with annual payment, the lessee pays the land rent every year during the entire lease term. This form will help reduce the initial financial pressure on the lessee. In addition, the lessee who pays the land rent in one time will have to pay the entire land rent at once upon signing the contract. This form often comes with a more favorable rental price than paying annually.

Factors affecting land rental prices

Land rental valuation is the process of determining the value of a piece of land based on various factors to determine a reasonable rental price. This process requires careful analysis of many aspects to ensure that the rental price reflects the actual value of the land in the current market context.

In the process of land rental valuation, there are many factors that need to be carefully considered to ensure that the price reflects the actual value of the land. Factors that can be mentioned include the location of the land in the city center or suburbs, the size of the plot, the land used for residential - production or commercial services, the lease term and legal policies related to land, etc.

Land rental valuation plays an important role in real estate transactions because it determines a reasonable and fair price for both the lessee and the lessor. Accurate valuation helps avoid legal disputes and facilitates the negotiation and signing of contracts. At the same time, proper valuation also helps increase transparency and stability in the real estate market.

Land Lease Valuation Process

Implementing an accurate and transparent land lease valuation process will help ensure fairness and efficiency in real estate transactions. Below are the steps of land lease valuation that Indochina International Valuation performs when appraising land lease prices:

• Collect information: Collect information about the land lot, including location, area, shape, and related factors.
• Market analysis: Research the current real estate market to understand price trends and land use demand.
• Evaluate influencing factors: Consider factors such as location, area, purpose of use, lease term, and legal policies to assess their impact on rental value.
• Determine land lease value: Use valuation methods such as the comparable method, income method, or cost method to determine the appropriate rental price.
• Prepare valuation report: Summarize the valuation results and prepare a detailed valuation report, including necessary information and basis for calculating rental value.

How to determine land rental price

The determination of land rental price is usually applied according to Vietnamese law based on the land rental price coefficient and the rented land area. Specifically as follows:

Annual land rental price = Rented land area x Annual land rental price

In which:

• Leased land area: Is the land area that an individual or organization signs a rental contract with a state agency.
• Annual land rental price: This price is determined based on the percentage of land price according to the land price list issued annually by the Peoples Committee of the province or city. This rate usually fluctuates from 0.5% to 3%.

Prestigious land rental valuation service at Indochina International Appraisal

In the context of increasing demand for land rental, many businesses are facing constant fluctuations in the real estate market, leading to difficulties in determining accurate values. In addition, the lack of transparent information will lead to inaccurate valuation, directly affecting customers business and investment plans.

With a team of experienced experts and modern valuation methods, Dong Duong International Valuation is committed to bringing transparency, accuracy and science in real estate valuation results:

• Professional and reliable: We ensure accuracy and objectivity in the land valuation process, helping customers feel secure about the value of their assets.
• Save time and costs: An efficient and clear working process helps customers save time and costs compared to self-study and evaluation.
• Dedicated consulting: Customers will receive detailed and appropriate consulting for each specific case, ensuring that all investment decisions have a solid basis.

In addition, to increase the accuracy of each report, Indochina International Appraisal has been applying 5 land valuation methods such as direct comparison method, cost method, income method, surplus method, direct capitalization method, etc. This has helped us determine the true value of the property, avoiding mispricing compared to the market.

⋙ Let Indochina International Appraisal help you determine the most accurate and effective land rental price! Contact us now for free consultation and optimize land rental costs for your project!