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PRICE OF LAND IN HO CHI MINH CITY IS RISING STRONG

PRICE OF LAND IN HO CHI MINH CITY IS RISING STRONG

The new land price bracket (period 2020-2024) has been proposed by many cities & provinces, showing a very high average increase, in some places up to 95%.

The land price list is developed every 5 years, applied to calculate land use fees, charges in land management and land use, fines for administrative violations in real estate, compensation, land use value, etc.

Ho Chi Minh City is building 3 new land price schemes:


Option 1: Keep the minimum price unchanged; doubled the maximum price compared to the current price. Specifically:

  • Maximum land price: 429 millions VND/sqm.
  • Maximum commercial and service land price: 338 millions VND/sqm.
  • Maximum land price for non-agricultural production and business: 260 millions VND/sqm.

Thus, the price will be too high, not suitable for market prices under normal conditions and will push up the market price.


Option 2: Keep the minimum price unchanged; increase about half the maximum price compared to the current price. Specifically:

  • Maximum residential land price: 319.8 millions VND/sqm.
  • Maximum commercial and service land price: 253.5 millions VND/sqm.
  • Maximum land price for non-agricultural production and business: 192.4 millions VND/sqm.

Option 3: Keep the minimum price unchanged; increase by about 1/3 of the maximum price compared to the current price. Specifically:

  • Maximum residential land price: 280 millions VND/sqm.
  • Maximum commercial and service land price: 223.9 millions VND/sqm.
  • Maximum land price for non-agricultural production and business: 167.9 millions VND/sqm.

HCMC Real Estate Association (HoREA) thinks that Option 2 is the most reasonable.

Land use fee accounts for approximately 10% of the cost of apartments; around 30% of the town house price; approximately 50% of the villa price.

The price is the basis for the investor to decide the selling price of housing products to the market. Therefore, the increase in land price direct impact on housing prices, which makes it more difficult for middle-income and low-income urban people to buy houses.