The HCM City Department of Natural Resources and Environment (DONRE) is currently gathering feedback from relevant departments and units on a draft decision to amend Decision No. 02/2020, which established the land price framework issued by the HCM City People's Committee in January 2020.

According to DONRE, the 2020 land price table was constrained by a land price ceiling of 162 million VND/m2. Market data has shown that this maximum price is far from reflecting the true market value of land, necessitating adjustments.

Additionally, the 2020 land price table was limited to eight scenarios for land procedures, with a five-year update cycle that made it difficult to capture market fluctuations.

DONRE states that land prices in HCM City have stabilized in recent years, accurately reflecting the true value of real estate. However, there is not expected to be significant volatility in land prices due to large inventories of apartments and townhouses. Certain market segments, such as land leasing and office rental, have seen demand decrease, though prices remain high.

The new decision aims to align the land price table with market trends and fluctuations, ensuring it corresponds with market values. If approved, the new land price table will be effective from August 1 to December 31 this year.

Following this period, DONRE will conduct a review to assess the economic and social impacts of the new prices, and continue to adjust the land price table for application in 2025.

The proposed land price table covers 4,565 streets, an increase of 577 streets compared to the current table. According to the draft, land prices on many streets in HCM City have increased significantly compared to the current rates.

In District 1, which has the highest land prices in HCM City, land prices on streets such as Dong Khoi, Le Loi, and Nguyen Hue are set to rise from 162 million VND/m2 to 810 million VND/m2, an increase of five times.

Land prices on many central streets have also increased fivefold, 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), and Dong Du Street (from 88 million VND/m2 to 440 million VND/m2).

Hong Khanh