The Ho Chi Minh City People's Committee has just assigned the Department of Natural Resources and Environment to preside over and draft the Ho Chi Minh City People's Committee's decision on the land price list applicable from August 1 to before January 1, 2026. That is, the land price list will be applied for nearly 1.5 years.

On July 29, the Department of Natural Resources and Environment of Ho Chi Minh City announced a draft of a new land price list. Accordingly, the city's land prices will increase by an average of 10-20 times compared to the current land price list. Of which, 1 district and 4 districts have increased by over 30 times. In particular, some locations in Hoc Mon district have increased by 51 times.

Also according to the newly announced land price list, land prices in District 1 increased 5 times; District 3 increased 4-9 times; District 4 increased 11 times; District 5 and District 7 increased 6 times; District 6 increased 5-11 times; District 8 increased 4-18 times; District 10 increased 5-6 times; District 11 increased 4-9 times; District 12 increased 3-33 times.

Similarly, Binh Thanh district increased 5-13 times; Go Vap district increased 7-11 times; Phu Nhuan district increased 7-8 times; Tan Binh district increased 7-12 times; Tan Phu district increased 7-17 times; Binh Tan district increased 9-17 times; Thu Duc city increased 6-35 times.

Hoc Mon district increased 5-51 times; Cu Chi district increased 9-31 times; Binh Chanh district increased 2-36 times; Nha Be district increased 7-23 times; Can Gio district increased 8-23 times.

Also according to this new land price list, the highest land price in Ho Chi Minh City is 810 million VND/m2 of the 3 streets Dong Khoi, Le Loi, Nguyen Hue District 1, 5 times higher than the land price of 162 million VND/m2 of the previous land price list.

Regarding this issue, Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association, said: The Ho Chi Minh City People's Committee and the Ho Chi Minh City Department of Natural Resources and Environment issuing a new land price list early is not really necessary.

“Because previously, Ho Chi Minh City issued Decision No. 56/2023, regulating the land price adjustment coefficient in 2024 in the area, so it increased the land price adjustment coefficient. Therefore, the issuance of the Draft Land Price List applicable from August 1, when the 2024 Land Law takes effect, is not necessary,” Mr. Chau analyzed.

According to Mr. Chau, Ho Chi Minh City currently has full regulations on land price tables and land price adjustment coefficients. The land price table according to the provisions of the 2013 Land Law can completely continue to be applied until the end of December 2025.

HoREA also analyzed the undesirable impacts of the Draft Adjusted Land Price List. First, the new land price list has a common increase of 10-20 times compared to the current land price list, but in general, it is still lower than the market price.

For example, the land price of the three streets Dong Khoi, Le Loi, Nguyen Hue (District 1) is adjusted to 810 million VND/m2, but this area has almost no buying and selling transactions. Real estate here is of the "accumulated" type, mainly for rent and storage, so in the past 15 years there has only been 1 transaction of buying and selling a townhouse at a very high price, possibly around 2 billion VND/m2.

Along with that, the price of the Draft land price list will have a great impact on many individuals and households when proposing to issue Certificates of land use rights, house ownership rights, and assets attached to land, because they have to pay land use fees according to the land price list higher than before.

In addition, the price of the Draft Land Price List will have an impact on input costs of many sectors of the economy. First of all, the cost of compensation for site clearance will be pushed higher, causing a chain reaction that increases housing prices, house rental prices, land rental costs, factory rental costs, services, and tourism, leading to a possible increase in the price of goods in general, and also adversely affecting social housing projects where enterprises agree to receive land use rights transfer.

The Association proposed that Ho Chi Minh City does not need to issue a draft land price list, but should focus on developing and completing the first draft land price list, to be announced and applied from January 1, 2026 according to the provisions of the 2024 Land Law.