The new framework will be applied from October 31, 2024 to December 31, 2025.

The HCM City Department of Natural Resources and the Environment set to work on the adjusted land price framework in July 2024.

On July 30, the agency submitted the adjusted land price framework to the city’s Land Appraisal Council.

At that time, the adjusted framework caught the attention from the city’s dwellers. Meanwhile, experts warned that overly sharp price increases would  lead to higher taxes and fees that land users will have to pay.

After considering the ideas about land pricing, on October 14, the HCM City Department of Natural Resources and the Environment submitted the revised version to the Land Appraisal Council. In its report about the results of the appraisal, the council agreed with the proposals from the department.

Under the new land price framework, the prices of agricultural land are calculated by multiplying the 2020 land prices by the K coefficient. The prices of the land slightly increase compared with the old prices.

In the case of residential land, while the land prices in 2020, after being multiplied by K coefficient would be equal to 30 percent of market prices, the new land prices would be equal to 50 percent.

The highest land price in the city belongs to the land plots on Nguyen Hue, Dong Khoi and Le Loi roads in district 1, at VND687.2 million per sq m. The price level represents a 21 percent increase (VND120.2 million per sq m) compared with the 2020 land price frame (VND567 million).

Meanwhile, at the time when the draft framework was open for public opinions in July, the land price on the three above mentioned streets was VND810 million per sq m.

The lowest land price belongs to Thieng Lieng residential quarter in Can Gio district, at VND2.3 million per sq m. In the 2020 land price framework, the price was just VND170,000.

According to the HCM City Department of Natural Resources and the Environment, the old land price framework is used for calculating taxes and land use fees in 6 cases.

Meanwhile, under the 2024 Land Law, the adjusted land price framework is applied to 12 land use cases. Of these, the new framework will be applied to seven cases: 1/ calculating annual land rents 2/ calculating once-paid land use fees 3/ calculating income taxes from land transfer 4/ setting up starting prices for auctions 5 /calculating taxes when the state allocates land but not through auctions 6/c alculating land use fees when the state sells houses to tenants and 7/ defining resettlement land prices.

Anh Phuong