Concerns that the new land price list in Ho Chi Minh City will cause housing prices to continue to skyrocket, leaving low-income people 'disillusioned'

(CLO) Savills Vietnam representative is concerned that increasing land use costs will put pressure on product prices, especially in the housing segment for low- and middle-income earners.

Recently, Ho Chi Minh City announced a new land price list, effective from October 31, 2024 to December 31, 2025. This is the first adjustment since 2020, with land prices increasing sharply, from 4 to 38 times depending on the area. The lowest price in Thieng Lieng (Can Gio district) is 2.3 million VND/m2, while the highest price on central streets of District 1 such as Dong Khoi, Le Loi and Nguyen Hue is 687.2 million VND/m2.

Savills Vietnam believes that the adjustment of land prices in Ho Chi Minh City will not only ensure fairness, but also accelerate important infrastructure development projects in the city.

Impact of new land price list on Ho Chi Minh City real estate market

The new land price list has many impacts on different groups of subjects in the market, from people, businesses to foreign investors.

Many are concerned that the new land price list in Ho Chi Minh City will cause housing prices to continue to skyrocket. (Photo: NLĐ)

It can be said that people whose land is recovered have their rights guaranteed much more than before and this is the main group affected. With prices approaching market value, compensation becomes more transparent and reasonable, helping to reduce land disputes. This is especially important in large infrastructure projects such as Ring Road 3 or Metro Line 2.

According to Ms. Giang Do, Director of Savills Vietnam Consulting Department, the new land price list not only helps increase public consensus but also speeds up site clearance, which is a key factor for large projects.

In addition, a more transparent investment environment thanks to the new land price list is also a plus. Foreign investors can easily determine costs and calculate profits, especially in the context of Ho Chi Minh City becoming the leading economic center of the region.

“The more transparent adjustment of land prices based on actual values ​​will create greater confidence for foreign investors. This is a necessary step to ensure sustainable development of the market,” said a representative of Savills Vietnam Consulting Department.

On the other hand, the new land price list creates financial pressure for investors. The high cost of land use causes the price of real estate products to escalate, directly affecting people's ability to access housing.

Ms. Giang is concerned that rising land use costs will put pressure on product prices, especially in the housing segment for low- and middle-income earners. This is a challenge that needs to be carefully considered.

In particular, in suburban areas, new land prices make it more difficult to convert land use from agricultural land to residential land, reducing opportunities for developing low-cost housing projects.

Building an online portal on land prices is an urgent solution.

Faced with this situation, Savills Vietnam believes that building an online portal on land prices is an urgent solution. A transparent system that publicly discloses land price data by region will help people, businesses and investors easily look up information, thereby making appropriate decisions.

Savills Vietnam believes that building an online portal on land prices is an urgent solution. (Photo: ST)

“Information transparency not only strengthens trust but also creates the foundation for more effective land management,” Ms. Giang emphasized.

In addition, to solve the problem of applying a uniform land price for the entire route with different characteristics such as one-way sections, two-way sections, wide sections, narrow sections, it is necessary to classify land prices in more detail based on specific factors such as traffic volume, infrastructure connectivity and surrounding amenities. This ensures fairness between areas and increases feasibility when applying the new land price list.

The combination of modern technology and improvements in the way land prices are applied not only helps to increase transparency but also supports the creation of a sustainable real estate market that balances the interests of all parties.

Source: https://www.congluan.vn/bang-gia-dat-moi-tai-tp-hcm-se-khien-gia-nha-tiep-tuc-tang-phi-ma-nguoi-thu-nhap-thap-vo-mong-post329817.html