HCMC issues adjusted land price list, officially effective from October 31

HCMC – On the morning of October 22, 2024, the People’s Committee of Ho Chi Minh City officially issued Decision No. 79/2024 regarding the adjustment of the land price list across the city. This is important information not only for residents but also for investors and businesses operating in the real estate and commercial sectors.

This article will provide detailed information and analysis on the adjusted land price list, along with its impacts on economic and social activities in HCMC.

Decision on Adjusting the Land Price List

Decision No. 79/2024 by the HCMC People’s Committee was issued to amend and supplement Decision No. 02/2020 on the land price list. This decision will take effect on October 31, 2024, and remain valid until December 31, 2025. The adjustment of the land price list is necessary to accurately reflect the actual value of land amidst the city’s rapid economic and social development.

Notable Changes in the New Land Price List

According to the newly issued adjusted land price list, land prices in HCMC have increased significantly, ranging from 4 to 38 times compared to the current prices. The areas with the highest land prices are Nguyen Hue, Le Loi, and Dong Khoi streets in District 1, with prices reaching up to 687.2 million VND/m². Additionally, several other streets in the center of District 1, such as Han Thuyen and Ham Nghi, also recorded high prices, around 430 million VND/m².

Division of Areas and Land Locations

The new land price list not only adjusts the prices but also divides the land into 3 areas and 3 different locations:

• Area 1: Includes District 1, District 3, District 4, District 5, District 6, District 10, District 11, Binh Thanh District, and Phu Nhuan District.
• Area 2: Includes District 7, District 8, District 12, Tân Bình District, Tan Phu District, Binh Tan District, Go Vap District, and Thu Duc City.
• Area 3: Includes Binh Chanh District, Hoc Mon District, Cu Chi District, Nha Be District, and Can Gio District.

Each area is divided into 3 different locations based on the distance of the land lot to the curb (the streets listed in the land price list). Specifically:

• Location 1: The land lot adjacent to the curb within a range of 200m.
• Location 2: The land lot not adjacent to the curb within a range of 400m.
• Location 3: The remaining locations.

The areas will be multiplied by different coefficients to determine the land prices. Specifically, Area 1 will be multiplied by a coefficient of K = 2.7 times, Area 2 by 2.6 times, and Area 3 by 2.5 times.

Agricultural Land Prices

For agricultural land, the new price list shows a significant adjustment in the prices of annual crop land (rice and other annual crops). Specifically:

For perennial crop land, the prices have also been adjusted according to the areas and locations as follows:

Land Prices in High-Tech Agricultural Zones

For agricultural land in the High-Tech Agricultural Zone, the land price is set at 320,000 VND/m². In Pham Van Coi Commune (Cu Chi District), the land price is calculated at 128,000 VND/m², multiplied by a coefficient of K = 2.5 times.

Land Prices for Non-Agricultural Production and Business

Land prices for non-agricultural production and business, excluding commercial and service land, include: industrial zones, export processing zones, Quang Trung software park, industrial clusters, minerals; land used for national defense and security purposes; land used for public purposes; land for building government offices, public service facilities; warehouses, storage yards, train stations, bus stations, ports, river ports, parks, themed parks, and zoos, are regulated as follows:

• In Districts 1, 3, 4, 5, 6, 10, 11, Binh Thanh, and Phu Nhuan, the price is calculated at 50% of the non-agricultural production and business land price, excluding commercial and service land.
• In Districts 7, 8, 12, Tan Binh, Tan Phu, Binh Tan, Go Vap, and Thu Duc City, the price is calculated at 60% of the non-agricultural production and business land price, excluding commercial and service land.
• Additionally, in Binh Chanh District, Hoc Mon District, Cu Chi District, Nha Be District, and Can Gio District, the price is calculated at 75% of the non-agricultural production and business land price, excluding commercial and service land.

The land price must not be lower than the price of perennial crop land in the same area and location.

Cases for Applying the New Land Price List

The new land price list will be used as a basis for 12 specific cases, including:

• Calculating the land use fee at the resettlement site for individuals who are compensated for residential land or for those allocated residential land in resettlement when they do not meet the conditions for compensation for residential land is based on the land price determined according to the price list at the time of approval of the compensation, support, and resettlement plan;
• Calculating the land use fee when the State recognizes the residential land use rights of households and individuals; changing the land use purpose of households and individuals; calculating the land rent when the State leases land with annual rent payments; calculating land use tax; calculating income tax from the transfer of land use rights for households and individuals; and calculating fees related to land management and use;
• Calculating fines for administrative violations in the field of land; calculating compensation to the State for damages caused in land management and use;
• Calculating land use fees and land rent when the State recognizes land use rights through the allocation of land with payment for land use, or leasing land with a one-time rent payment for the entire lease period for households and individuals.

The next cases include calculating the starting price for auctioning land use rights when the State allocates or leases land for land lots or areas that have been invested in technical infrastructure according to the detailed construction planning; calculating land use fees in cases where land is allocated without going through the auction of land use rights for households and individuals; and calculating land use fees in cases of selling state-owned housing to tenants.

According to the People's Committee of HCMC, in cases where the competent State authority has received the application from the land user before the effective date of this Decision, the land price for calculating financial obligations and land taxes will continue to be implemented according to the regulations at the time of application submission.

Download the Latest Adjusted Land Price List Effective from October 31, 2024

Liên kết tải về bảng giá đất TP HCM điều chỉnh áp dụng 31/10/2024: Google Drive

Impact of the Land Price List on Socio-Economic Conditions

The adjusted land price list will have 9 positive impacts, including: individuals whose land is acquired will receive adequate compensation, support, and resettlement, with higher compensation; increased state budget revenue; harmonized and equitable handling of land rent differences among land users, investors, and the Government; key projects and works funded by the state budget will be on schedule without delays; addressing the issue of declaring transfer prices lower than actual prices; reducing administrative violations in land management due to increased fines...

In addition, the adjusted land price list has 2 unintended impacts: households and individuals who are permitted by the Government to change their land use purpose will incur higher financial obligations compared to before. However, this ensures fairness for those who do not own any residential land and must purchase land at market prices, which may be higher than the adjusted land price list.

Another impact is that the prices in the adjusted land price list have generally increased from 3 to 7 times compared to the current land price list when multiplied by the adjustment factor, but they are still generally lower than market prices.

Source: Internet