Land Price Adjustment in Ho Chi Minh City, Reaching up to US$32,000/m2

The Department of Natural Resources and Environment (DONRE) in Ho Chi Minh City is in the process of gathering feedback on a draft decision to revise the land price framework established by the city’s People’s Committee in January 2020.

The existing 2020 land price table had limitations, with a price ceiling of 162 million VND/m2 that did not accurately reflect the true market value of land, prompting the need for adjustments.

Furthermore, the 2020 land price table was constrained by a rigid structure of eight scenarios for land procedures and a five-year update cycle that hindered capturing market fluctuations effectively.

DONRE asserts that land prices in the city have stabilized in recent years to represent the actual real estate value, with little expected volatility due to an oversupply of apartments and townhouses. However, certain segments like land leasing and office rentals have experienced decreased demand while maintaining high prices.

The proposed revision aims to align the land price table with market trends and fluctuations, ensuring it is reflective of current market values. If approved, this new table will come into effect from August 1 to December 31 of this year.

Subsequent to this period, DONRE will evaluate the economic and social impacts of the new prices and continue to update the land price table for application in 2025.

The draft proposal encompasses 4,565 streets, an increase of 577 streets compared to the current table, with many streets in Ho Chi Minh City seeing significant price hikes.

In District 1, known for having the highest land prices in the city, rates on streets like Dong Khoi, Le Loi, and Nguyen Hue are set to climb from 162 million VND/m2 to 810 million VND/m2, marking a fivefold increase.

Land prices on central streets are also expected to surge five times, including 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), and Dong Du Street (from 88 million VND/m2 to 440 million VND/m2).