Dong Khoi Street (Ho Chi Minh City) according to the new land price list can be up to 810 million VND/m2

According to the draft new land price list of the Department of Natural Resources and Environment of Ho Chi Minh City (expected to be applied from August 1 to the end of this year), land prices on many roads may increase 5-37 times compared to the current price. Of which, the three central roads of District 1, Dong Khoi, Nguyen Hue and Le Loi, will have the highest residential land prices, up to 810 million VND per square meter. Compared to the current price list (162 million VND), this level has increased 5 times.

Some neighboring routes such as Dong Du are expected to increase to 440 million VND per square meter; Hai Ba Trung route (section from Bach Dang Wharf to Nguyen Thi Minh Khai) is 484 million VND per square meter; Ton Duc Thang street (section from Me Minh Square to Nguyen Tat Thanh bridge) is 528 million VND, all increasing 5-6 times compared to the current land price list.

In District 3, the entire Nam Ky Khoi Nghia, Tran Cao Van and Cong Truong Quoc Te streets will have the highest new land prices in the district, at around 420 million VND per square meter, an increase of 6.5 times compared to the current price. A series of other busy commercial streets in this area such as Vo Van Tan, Nguyen Dinh Chieu, Cao Thang, Pasteur... will also have new prices adjusted from 300-330 million VND per square meter, an increase of 5-6 times.

District 4 also has quite high land price fluctuations according to the new price list. Hoang Dieu Street (from Nguyen Tat Thanh to Doan Van Bo) will have land price of 489 million VND per square meter, an increase of 11 times compared to the current price. Or Le Van Linh, Le Quoc Hung Street (from Hoang Dieu to Le Van Linh) and Le Thach Street all have new land price expected to be 372.9 million VND per square meter, an increase of 11.3 times...

Thu Duc City (including District 2, District 9 and the old Thu Duc) is also a locality with strong changes according to the new land price list. The current land price in this area is on average from 5-8 million VND per square meter, especially on central roads such as Tran Nao and Luong Dinh Cua, the current price is about 5-13 million VND per square meter, but the new expected price has skyrocketed 10-17.5 times compared to the current price, up to the highest of 149 million VND per square meter.

In particular, Hoc Mon district has some roads with land prices expected to increase dramatically, more than 37 times, such as Bui Van Ngu street (section from Bau intersection to Nguyen Anh Thu) with land prices from 1 million VND to 36 million VND per square meter, 36 times higher than the current price, and Nguyen Thi Thanh section from 610,000 VND to 22.4 million, an increase of 37.3 times.

The latest Land Law stipulates that the land price list will be used in the following cases: calculating land use fees, land rent, land use tax, income tax from land use rights transfer; calculating land management and use fees; calculating fines, compensation for violations in the land sector and calculating starting prices for land use rights auctions.

This new land price list is expected to be applied from August 1 to December 31 this year. After that, the Ho Chi Minh City Department of Natural Resources and Environment will assess the economic and social impacts to continue adjusting the land price list applied from January 1 to December 31, 2025.

The agency said that the adjustment of the land price list according to the 2024 Land Law is based on market principles, and when applied, it will affect a number of groups. However, with land areas within the limit, the time of use will be taken into account to determine the collection rate based on the land price list. With the calculation of land use tax, the tax rate was previously 0.03% of the land price in the price list. Up to now, the land price list has been adjusted to approach the market price, so the tax rate will increase.

The Department of Natural Resources and Environment also explained that the old land price list was controlled by the provisions of Decree No. 96/2019 of the Government on the land price framework (maximum 162 million VND), so it had to be adjusted downward compared to the collected market information. This led to land prices not approaching the market price.

Therefore, the development of the Decision to adjust the price list of land types takes into account market trends and fluctuations, ensuring that the price list of land types is similar to market prices, helping to reduce congestion in public investment disbursement and implementation of administrative procedures for people and organizations.