HCMC – The government of HCMC has proposed revising up the coefficients for land prices by a notch to 2.5-3.5 during a meeting held yesterday, December 7.
The coefficients are set by provincial-level authorities, used for land price calculation and revised annually based on the local real estate market conditions, socio-economic conditions and land price lists.
However, the southern metropolis has not changed its coefficients in the past three years due to the impacts of Covid-19 on households and businesses, leaving the coefficients at 1.5-2.5.
If the proposal is passed, the 2023 land prices may increase 3.5-fold at best above the land price table issued by the HCMC People’s Committee in districts 1, 3, 4, 5, 10, 11, and Tan Binh and Phu Nhuan districts.
For example, HCMC’s 2020-2024 price table determines the land price of Dong Khoi, Ham Nghi and Le Loi streets in District 1 at VND162 million per square meter. The land can be sold for as much as VND567 million per square meter in 2023 once the proposal is approved.
According to the HCMC government, the current rate for land prices only accounts for 10.5-35.7% of the market price, while the new coefficients would help keep up with the market prices, increasing to 18-50%.