Currently, many real estate businesses believe that if land use fees are calculated according to the K coefficient, they must be paid very high. Accordingly, a real estate project often has many purposes (mixed) and forms new roads. However, the land price list has not been updated, does not include new traffic roads, leading to the failure to apply the K coefficient to determine land prices accurately, causing difficulties for businesses and loss of state budget revenue, the project is prolonged, and costs are increased.
Mr. Le Hoang Chau - Chairman of the Ho Chi Minh City Real Estate Association - gave an example: Suppose there is a land plot on Nguyen Xien street, Thu Duc city with an area of 1ha, the land price table is 56.6 million VND, the current land price adjustment coefficient is about 1.4 times, which is about 80 million VND/m2. Thus, if applying "Land price table x land price adjustment coefficient", when land is recovered, land is allocated, land use purpose is changed... land price of 80 million VND/m2 will be applied.
Meanwhile, also on Nguyen Xien street, there is a high-rise apartment project with a land area of 10,000 m2 with a land use coefficient of 7 times. The current apartment price is 50 million VND/m2.
Taking the project implementation time threshold of 2 years, after deducting sales, management, loan interest, investor profit and construction costs, it shows that if the "surplus method" is applied, the surplus value is only about 35 million VND/m2, while calculated according to "K coefficient" is 80 million VND/m2 (2.28 times higher). Thus, to avoid capital losses, businesses must push selling prices above 100 million VND/m2.
From the above example, it shows that land use fees may increase sharply after applying the new land price list, creating many consequences. Investors are under great pressure from both project development costs and increased land use fees. If selling prices are not adjusted, many businesses will not be able to survive and once this situation continues, new supply will become scarce again, house prices will continue to escalate, and the dream of settling down will become increasingly distant.
The Vietnam Association of Realtors (VARS) also gave its opinion that the biggest risk of the market today comes from the application of new land price lists in the context that many localities have not issued adjustment coefficients or applied them at a high level. This causes land costs to increase sharply, pushing project costs up and causing difficulties for businesses, especially in new development areas. Land costs will then continue to become bottlenecks, hindering real estate supply in 2026.
Along with land prices, the level of lending interest rates showing signs of rapid increase in a short time is also forecast to create pressure and at the same time on project developers and real housing buyers.
In the context that real estate prices in major cities are already high compared to average income, increased capital costs cause the market to narrow down the group of people who are likely to participate, especially buyers who use financial leverage, directly affecting market liquidity.
Therefore, according to Mr. Le Hoang Chau, determining land prices with a K coefficient makes the land use fee of the project to be paid very high, unreasonable, so it is necessary to build a land price adjustment coefficient applied to each area, location, and project to apply to real estate projects, commercial housing, and urban areas.
The valuation of land for real estate investment projects, commercial housing, and urban areas is completely different from the valuation of land for a house foundation, a small plot of land. Because real estate projects, commercial housing, and urban areas have large land use scales and each project usually has a different land use coefficient. Therefore, it is necessary to develop a calculation method that if the project has a higher land use coefficient, land use fees and land rents must be paid higher than projects with a lower land use coefficient," Mr. Le Hoang Chau stated his opinion.
