The Ho Chi Minh City Real Estate Association (HoREA) has just sent a document to the Prime Minister and relevant ministries to contribute opinions on the land price adjustment coefficient for the draft "Decree detailing and guiding a number of articles of Resolution 254/2025/QH15 of the National Assembly stipulating a number of mechanisms and policies to remove difficulties and obstacles in organizing the implementation of the Land Law".
Talking to Lao Dong Newspaper reporters, Mr. Le Hoang Chau - Chairman of HoREA said that currently many businesses propose that if land use fees are calculated according to the K coefficient, they must pay very high fees.
Mr. Chau cited a land plot on Nguyen Xien street, Thu Duc City in the past with an area of 1 ha. The residential land price list on Nguyen Xien street is 56.6 million VND, the current land price adjustment coefficient (K coefficient) is about 1.4 times, which is about 80 million VND/m2. Thus, if applying the "land price list x land price adjustment coefficient", land acquisition, land allocation, land use purpose conversion... will apply land prices of 80 million VND/m2. To avoid capital losses, businesses must push selling prices above 100 million VND/m2.
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. Therefore, determining land prices by "coefficient k" 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.
Mr. Le Hoang Chau said that 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 land plot. 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, the land use fee and land rent must be paid higher than the project with a lower land use coefficient.
Mr. Le Hoang Chau said that HoREA has proposed to supplement specific regulations on the formula for calculating land use fees and land rent paid in one-time installments for the entire lease term.
Accordingly, HoREA proposes to clarify the types of land price adjustment coefficients, including distinguishing between the annual land price adjustment coefficiency (K1), the annual adjustment coefficiency (if any) and the land price adjustment coefficiency applied to each area, location, and project (K2). This distinction aims to ensure compliance with land management practices and the specifics of each construction investment project using land.
According to the proposal, the K1 coefficient reflects the general fluctuations of market land prices by region, built on the basis of land price data, planning and socio-economic factors.
Meanwhile, the K2 coefficient needs to be determined separately for each project, based on the land use coefficient, investment scale, land use purpose and other factors affecting land prices.
HoREA also proposed to supplement regulations on the formula for calculating land use fees and land rent paid in one-time installments for the entire lease term, in order to facilitate localities in the application process. Accordingly, land use fees are determined by land prices in the land price table multiplied by the adjustment coefficients K1 and K2.
In addition, HoREA proposes to stipulate that the land price adjustment coefficient is equal to 1 from January 1, 2026 for localities that have issued new land price lists in accordance with Resolution 254 and in accordance with market land prices, only adjusting the coefficient in cases where the land price list does not reflect the reality correctly.
