The Ho Chi Minh City Department of Natural Resources and Environment is seeking feedback on a draft decision to adjust Decision No. 02/2020/QD-UBND dated January 16, 2020, regarding land prices in the city. This is an adjusted land price schedule that will take effect from August 1, 2024, with a total of 4,565 roads, an increase of 557 roads compared to the current schedule.
According to the adjusted schedule, the highest urban land price in Ho Chi Minh City will be 810 million VND/m2 on central roads such as Dong Khoi, Nguyen Hue, and Le Loi (District 1). Compared to the current land price schedule, this proposed price is five times higher, at 648 million VND/m2. These roads have a long history and are known as the most prestigious and expensive in the city.
Currently, rental spaces on these roads are quite expensive. For example, rents on Dong Khoi Street range from 2.5 million to 8 million VND per square meter per month, depending on the specific location and area. Spaces with prime locations and larger areas tend to be more expensive. However, the 8 million VND/m2 rate is usually for spaces in prime locations, such as those with two frontages or near bustling commercial areas.
Despite these high rents, in 2023, Dong Khoi Street was ranked among the top 13 most expensive rental spaces in the world, according to a report by Cushman and Wakefield. Global brands such as Louis Vuitton, Dior, and Hublot are still willing to spend tens of thousands of dollars each month to secure prime locations on this street.
While some spaces on this street are highly sought-after, there are also many vacant ones, with businesses ceasing operations for the past year, yet rents remain unchanged.
Despite being bustling and expensive, these streets are lined with lush greenery, improving the living environment, providing relaxation for residents, and attracting tourists. This aligns with the city’s urban planning policies, contributing to the sustainable development of Ho Chi Minh City.
Some nearby roads, such as Phan Boi Chau, are expected to be priced at 348 million VND/m2 (an increase of 278.4 million VND/m2); Phan Chu Trinh at 440 million VND/m2 (an increase of 352 million VND/m2); and Pham Hong Thai at 418 million VND/m2 (an increase of 334.4 million VND/m2)…
The reason for the land price adjustment by the Department of Natural Resources and Environment is that some roads in the city were previously priced at only 1-2 million VND/m2, while actual transaction prices reached 100-200 million VND/m2. Therefore, the city government needs to make adjustments to create a more suitable price schedule for the current phase.
The Director of the Ho Chi Minh City Department of Natural Resources and Environment emphasized that this land price schedule is an adjustment, and the city has not yet developed a new land price schedule according to the 2024 Land Law. The process of adjusting the land price schedule consists of seven steps, six of which have been completed by the Department.
The current adjusted schedule updates the old prices, reflecting the current transaction prices, approved compensation prices, and specific market trends to ensure no losses in the context of the old schedule being too low. A new land price schedule will be constructed and applied from January 1, 2026.
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