Land prices in Ho Chi Minh City are about to be adjusted, the highest is 810 million VND/m2

The Department of Natural Resources and Environment (DONRE) of Ho Chi Minh City is seeking opinions from departments, branches and units in the city on the draft decision to adjust Decision No. 02/2020, regulating the land price list issued by the City People's Committee in January 2020.

According to the Department of Natural Resources and Environment, the 2020 land price list of Ho Chi Minh City is controlled by the land price framework and the maximum price is only 162 million VND/m2. Through collecting market information, this maximum price is not close to the land price on the market, so it needs to be adjusted.

In addition, the 2020 land price list has limitations when it is only used for 8 cases to carry out land procedures and the land price list construction cycle lasts 5 years, making it difficult to update market fluctuations.

The Ho Chi Minh City Department of Natural Resources and Environment believes that land prices in the market in Ho Chi Minh City this year and previous years have gradually stabilized, reflecting the true value of real estate. However, in the coming time, there will be no fluctuations in land prices due to the large inventory of apartments and townhouses. Although some market segments such as land and office rental demand have decreased, prices remain high.

The decision to adjust the land price list takes into account market trends and fluctuations, ensuring that the land price list is consistent with market land prices. If approved, the new land price list will be applied from August 1 to December 31 this year.

After that, the Department of Natural Resources and Environment will summarize and evaluate the economic and social impacts. From there, continue to adjust the price list of land types in Ho Chi Minh City to apply in 2025.

The land price list expected to be applied includes 4,565 routes, an increase of 577 routes compared to the current land price list. Based on the expected adjusted land price list, land prices on many routes in Ho Chi Minh City have increased sharply compared to the current price.

In District 1, where land prices are the highest in Ho Chi Minh City, while land prices on Dong Khoi, Le Loi or Nguyen Hue streets were previously only 162 million VND/m2, the expected price will increase 5 times, to 810 million VND/m2.

Land prices on many streets in the city center have also increased 5 times compared to the old price, such as Alexandre De Rhodes Street (from 92.4 million VND/m2 to 462 million VND/m2), Cong Xa Paris Street (from 96.8 million VND/m2 to 484 million VND/m2), Dong Du Street (from 88 million VND to 440 million VND/m2)...