The highest land price is 687 million VND/m²
According to the land price list just issued by Ho Chi Minh City, the highest residential land price is 687 million VND/m2 on the streets in the city center such as Nguyen Hue, Dong Khoi, Le Loi. Thus, compared to the old land price, the new price has increased by 120 million VND/m2 (about 21%). This price has been adjusted down compared to the previous draft price list (810 million VND/m2).
Commercial and service land prices have been adjusted down sharply. For example, the newly adjusted commercial and service land price on Dong Khoi Street has a rental price of approximately VND 550 million/m2 multiplied by a percentage of 0.25% to 3% (still awaiting the decision of the Ho Chi Minh City People's Committee), while compared to the price list according to Decision 02/2020, the price is more than VND 9 million.
Similarly, the price of land for production and business (including land for industrial parks, industrial clusters, minerals; land for non-agricultural production facilities); land for national defense and security; public land; land for building agency headquarters, land for public works; other non-agricultural land... is also adjusted down. The price of agricultural land is adjusted by taking the price of agricultural land according to Decision 02/2020 and multiplying (x) it by a coefficient of 2.5 - 2.7. From there, the price of agricultural land only increased slightly compared to the old price.
According to general assessment, if the land price list according to Decision 02/2020 is about 30% of the market price in Ho Chi Minh City, the newly adjusted land price list will be about 50%.
Land use fee payment problem
Regarding the issue of people's concerns about the sharp increase in land use fees, causing financial difficulties, Mr. Nguyen Toan Thang - Director of the Department of Natural Resources and Environment of Ho Chi Minh City - said that the Government is developing a decree related to the exemption and reduction of land use fees for people.
Regarding the issue of handling real estate records after the new land price list is available, Mr. Thang affirmed that based on Decision 79, in cases where competent state agencies have received records of land users before the effective date of this Decision, land prices for calculating financial obligations and land taxes will continue to be implemented according to regulations at the time of filing.
In fact, the increase in the new land price list compared to the old price list was predicted and according to experts, the decrease in the new price compared to the adjusted land price list first announced in July 2024 is a positive signal, showing the listening of the agency that builds the land price list in Ho Chi Minh City.
The land price list is built on market principles, so it is pushed up higher than the old level, creating pressure on people to pay land use fees, but on the contrary, people whose land is recovered will "breathe easier", reducing complaints and lawsuits related to land and helping to speed up key infrastructure projects.
Dr. Nguyen Duy Phuong - financial expert of DG Capital - expressed the opinion that this adjusted land price list compared to the previously announced draft land price list has decreased by about 20 - 30%. However, compared to the land price list in Decision 02/2020, the new draft still increased by an average of 5 - 7 times. With stable land areas such as the central area being less affected, but the increase in the suburban areas is very large. This is a difficult problem for low-income people in suburban districts when they change the land purpose, like buying back their own land.
When applying the price list according to the increase adjustment, it will greatly affect the 5 suburban districts in the case of changing land use purposes. The best thing at this time is to have a support policy for the people.
