The most important feature of the new land price list is the adjustment of the regulations related to the principle of defining land locations and land prices in accordance with the width of land plots and the gradual price decreases depending on the distance.

The land position is defined based on profitability, infrastructure conditions and the distances between the locations and the streets named in the land price list.

Position 1 is applied to land plots facing roads and streets listed in the land price list.

Position 2 is applied to land plots adjacent to alleys with a cross-section of 3.5 meters or more.

Position 3 is applied to land plots adjacent to alleys with a cross-section 2 meters to less than 3.5 meters.

Position 4 is applied to land plots adjacent to alleys with a cross-section of less than 2 meters.

As for the land plots of far from roads and streets, the prices will be determined in accordance with distances from the plots to the roads and streets named in the list. The prices will be 5 percent lower for the land plots with the distances of 200-300 meters; 10 percent lower for 300-400 meters, 15 percent lower for 400-500 meters, and 20 percent for 500 meters or longer.

The new land prices are 2-6 times higher than the old ones. The highest price level, VND695.3 million per sq m is applied to streets in the central business district of Hoan Kiem (Position 1, including Le Thai To, Hang Ngang, Hang Dao streets), which is 3.7 times higher than the old price (VND187.9 million per sq m).

The ceiling price of VND114 million per sq m, previously applied to Tran Hung Dao street, has increased to VND695.3 million per sq m, or 6 times higher.

The price for Nha Tho street has increased from VND125.4 million per sq m to VND695.3 million (5.5 times).

The West West Lake urban area in Tay Ho district is the urban area with the highest price level, VND113 million per sq m.

This price level is applied to the most advantageous position (Position 1) with the cross-section of 60 meters, belonging to Tay Ho district, which means a 225 percent increase compared with the land price list released in 2019 (VND34.8 million per sq m).

Urban areas

Also in West West Lake (Starlake), the land plots with the cross-section of 60 meters, but belonging to Bac Tu Liem district, have the price of VND108 million per sqm, a 210 percent increase compared with the old land price list.

Under the new land price list, there are five urban areas with land prices of over VND100 million per sqm applied to land plots facing large roads.

Nam Trung Yen urban area, with the cross-section of 40 meters is priced at VND109.3 million per sq m,  Thanh Pho Giao Luu (50 meters) VND104.3 million, Doan Ngoai Giao area (60 meters) VND108 million; My Dinh – Me Tri urban area (20-30 meters) VND101 million.

The prices of the land in urban areas in the suburbs have been raised by 175-200 percent. Lideco urban area in Hoai Duc district, for example, has seen the price increase from VND18.8 million to VND54.7 million per sq m, which means a 190 percent increase.

The lowest price, VND11.38 million per sqm (+175 percent), is allied to Phu Thinh residential quarter in Son Tay Town.

However, analysts commented that the new official price levels, hundreds of percent higher than the old ones, are still lower than the market prices.

They pointed out that the real market prices, quoted from real transactions, are 3-4 times higher than the officially set rates. 

In Starlake, for example, villas and townhouses are offered at VND350-400 million per sq m, while apartments are VND100 million. There are villas offered at over VND500 million per sq m.

Two most expensive routes in Cau Giay

The price of the land plots on the two routes is VND181 million per sq m - the plots at Position 1 (Cau Giay and Tran Duy Hung).

The second highest price level, VND173 million per sq m, is applied to Le Van Luong street. Meanwhile, Hoang Dao Thuy, Hoang Quoc Viet, Khuat Duy Tien, Lac Long Quan and Xuan Thuy streets have the same price of VND147 million per sq m.

However, analysts pointed out that the market prices are much more expensive. The land on Cau Giay street is mostly traded at VND270 million per sq m, up 30 percent over the last year.

Hong Khanh