Guidance on Calculating Land Prices According to the Land Price List of Ho Chi Minh City

Guidance on Calculating Land Prices According to the Land Price List of Ho Chi Minh City (Image from the Internet)

Feneral Guidance on Calculating Land Prices According to the Land Price List of Ho Chi Minh City

Guidance 4114/HDLCQ-STNMT-STC-SXD-CT dated May 28, 2020, guides the application of land price lists issued in Decision 02/2020/QD-UBND dated January 16, 2020, by the People’s Committee of Ho Chi Minh City, including the following directions for calculating land prices:

- Determination of the frontage location: The plot of land, or parcel, must have at least one side adjacent to the street (a street listed in the Land Price List). The location identification is based on reality, not on the plot number or address of the land or parcel.

- For plots of land, or parcels, without a frontage location, the street address applies the land price of that street, except for special cases specified in section (3) and (4) below.

- The depth of non-frontage locations is the traveling distance (by road) from the inner edge of the street listed in the land price list to the land parcel or land zone; the length calculation is from the centerline of the alleyways leading in.

- The location identification for non-frontage land parcels or land zones is based on the narrowest width of the alley that must be traversed to reach the land.

- Dirt alleys are calculated at 0.8 times the price of gravel, asphalt, or concrete alleys.

Special Cases for Calculating Land Prices According to the Ho Chi Minh City Land Price List

(1) Plots of land, parcels with special shapes (applicable to all locations):

- Case 1:

For plots of land, parcels, or house lands with both frontage and non-frontage parts, the price for the non-frontage part is calculated at 0.8 times the frontage price. However, this applies only when the non-frontage area is from 15m² upwards (area S2 ≥ 15m² and S3 ≥ 15m²).

- Case 2:

For plots of land, parcels with a length many times greater than the width, the land price is calculated for each area portion based on the distance from the frontage:

House A with area S = S1 + S2 + S3.

Width R.

Length of the plot or parcel = A + B + C.

+ The area of the plot or parcel within a distance of up to 5 times its width from the frontage is priced at the full frontage rate, specifically: S1 is priced at the frontage land rate.

+ The area of the plot or parcel within a distance of more than 5 times and up to 8 times its width from the frontage is priced at 0.8 times the frontage rate, specifically: S2 is priced at 0.8 times the frontage land rate.

+ The area of the plot or parcel with a length greater than 8 times its width is priced at 0.7 times the frontage rate, specifically: S3 is priced at 0.7 times the frontage land rate.

(If the plot or parcel falls under both cases above, the pricing is determined first according to case 1, then case 2 applies.)

(2) For plots of land, parcels, or house lands located at multiple frontages, the price is determined based on the frontage with the highest land rate.

(3) For plots of land, parcels, or house lands located in an alley with a street address but the street lacks an alley leading in, or addresses that only show hamlet, neighborhood, group, or quarter names without street names, the price is based on the nearest alley leading to the street.

(4) For plots of land, parcels, or lands in alleys connecting to multiple streets with different prices, the price is determined based on the nearest alley leading to the street.

(5) For plots of land, parcels, or house lands without a road or alley leading in, accessed by boat or earthen paths, the price is determined based on the price for position 4 on the nearest street leading to the land.

(6) For plots of land, parcels located on segments of streets on either side of a bridge underpass (parallel to the bridge), the price is calculated at 0.7 of the street price.

(7) For plots of land, parcels located on segments of streets on either side of a flyover (parallel to the bridge), under the flyover, the price is calculated at 0.7 of the street price.

(8) For plots of land, parcels located within the protection corridor of high-voltage power lines, the price is calculated at 0.7 of the street price.

(9) For plots of land, parcels on branch roads leading to flyovers, the price is calculated at 0.7 of the street price.

(10) For parcels separated from the edge of the road by a canal or ditch that cannot be filled, the price is calculated at 0.7 of the street price.

(11) For plots of land, parcels with addresses located within the administrative boundaries of one district but without an access road, requiring access through roads in an adjacent district, the price is based on the land price of the named road in the adjacent district as listed in the Land Price List.

Minimum Land Price in Ho Chi Minh City

When applying the above guidance, the prices for different types of land shall not be lower than the minimum prices in the land price framework of the Government of Vietnam and Decision 02/2020/QD-UBND dated January 16, 2020, by the City’s People’s Committee, on the promulgation of the land price regulations in Ho Chi Minh City for the period 2020-2024, corresponding to each type of land (if the price is lower, it shall be set at the minimum rate). Specifically:

- For 16 districts and Thu Duc City:

+ Residential land: 1,500,000 VND/m²;

+ Commercial, service land: 1,200,000 VND/m²;

+ Non-agricultural production, business land not counted as commercial land: 900,000 VND/m²;

+ Land used for public purposes with business purposes; land for office buildings, public works: 450,000 VND/m².

- For 05 rural districts: Residential land; commercial land; non-agricultural production, business land not counted as commercial land; land used for public purposes with business purposes; land for office buildings, public works: “cannot be lower than the price of perennial crop land in residential areas within the same region.” Specifically:

+ Area II (Binh Chanh, Hoc Mon, Cu Chi, Nha Be districts): 360,000 VND/m².

+ Area III (Can Gio district): 288,000 VND/m².

Tran Trong Tin

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