The Ultimate Guide to Navigating Ho Chi Minh City’s Land Value: Unveiling the Secrets to Success in Vietnam’s Real Estate Market

At the meeting on Ho Chi Minh City’s socio-economic situation on August 1st, Mr. Vo Van Hoan, Vice Chairman of the Ho Chi Minh City People’s Committee, said that the new land price framework has been a topic of great interest to the public. As this information affects multiple stakeholders, it requires thorough discussion and consideration.

According to Mr. Hoan, the new land price framework warrants extensive discussion. He emphasized, “We need to be meticulous, provide clear answers, and ensure that people understand. For cases with negative impacts, we must find a solution.”

Meanwhile, Mr. Nguyen Toan Thang, Director of the Ho Chi Minh City Department of Natural Resources and Environment, stated that among the contents to be deployed under the 2024 Land Law, the People’s Committee of the province is authorized to consider using the old land price framework or adjusting it. Ho Chi Minh City has opted to adjust the old land price framework.

Adjusting the land price framework involves seven steps. The Department of Natural Resources and Environment of Ho Chi Minh City has completed six steps, and all data collected by the consulting unit across the city has been calibrated and transferred to the assisting group of the Ho Chi Minh City People’s Council for review and appraisal.

Mr. Thang clarified, “This time, the land price framework is an adjustment, and we have not yet built a new land price framework under the 2024 Land Law. The new framework will be constructed and applied from January 1, 2026. The current adjustment updates the old prices, incorporating current land transaction prices, approved compensation prices, and specific market prices to prevent losses in the context of the old prices being too low.”

The Director of the Ho Chi Minh City Department of Natural Resources and Environment provided an example of roads where the old land price framework was only VND 1-2 million/m2, while the current transaction price has reached VND 120 million/m2. Therefore, this update aims to calibrate and provide the most suitable land price framework for Ho Chi Minh City.

Previously, the Ho Chi Minh City Department of Natural Resources and Environment announced a draft decision to adjust Decision No. 02/2020/QD-UBND dated January 16, 2020, of the Ho Chi Minh City People’s Committee on land prices in the area.

According to the draft, the highest land price in Ho Chi Minh City’s urban area is VND 810 million/m2, located on central roads such as Dong Khoi, Nguyen Hue, and Le Loi (District 1). Compared to the current land price framework, the proposed prices are five times higher.

Some adjacent roads in the above-mentioned areas are priced at VND 528 million on Ton Duc Thang Street (from Me Linh Square to Nguyen Tat Thanh Bridge), an increase of VND 422.4 million/m2 compared to the current land price framework. Similarly, Pham Hong Thai Street is priced at VND 418 million/m2, an increase of VND 334.4 million/m2.

In Thu Duc City, the current land price framework ranges from VND 5-7 million/m2, with some places exceeding VND 20 million/m2. Now, there are also plans for a significant increase. For example, Tran Nao Street is expected to be priced at VND 149 million/m2, while the current framework ranges from VND 13-22 million/m2.

Roads in Thao Dien Ward, which previously had prices of around VND 7.8 million/m2, are expected to increase to VND 88-120 million/m2. Road 13, Ward 4 (An Phu Ward), with a current price of VND 5.2 million/m2, will increase to VND 91 million/m2 (a 17.5-fold increase).

Similarly, many roads in Districts 7, 4, and 12 are expected to be adjusted with prices increasing by 10-15 times compared to the current land price framework.

In Nha Be, Binh Chanh, Can Gio, and Cu Chi districts, the planned adjusted land prices in many places are 10-20 times higher than the land prices specified in Decision No. 02/2020/QD-UBND dated January 16, 2020, of the Ho Chi Minh City People’s Committee.

Hoc Mon district has the highest planned price adjustment compared to the old land price framework, with some roads increasing by more than 15-50 times. For example, the price of Do Van Day Street, from Cau Xang to Lang Cha Three-way Junction, will increase from VND 780,000/m2 to VND 24.1 million/m2, and the price of Nguyen Thi Thanh Street, from Dang Thuc Vinh Street to Tran Quang Co Canal, is expected to increase by more than 37 times, from VND 610,000/m2 to VND 22.4 million/m2.