New prices to range from VND1.5 million ($90) to VND162 million ($7,800) per sq m.
Ho Chi Minh City has announced that the official land price for prime locations will rise to a maximum of VND162 million ($7,800) per square meter.
The maximum is for non-agricultural land in streets such as Nguyen Hue, Le Loi, and Dong Khoi in District , while the lowest will be set at VND1.5 million ($90) per square meter. The new land prices have increased 1.6-fold on average compared with previously.
Recent surveys, however, have determined that the highest market price for land in Ho Chi Minh City is VND590 million ($37,400) per square meter, on Dong Khoi and Nguyen Hue streets, and the lowest is VND90 million ($4,500). This means that the highest official price is less than 30 per cent of the market price.
The Ho Chi Minh City People's Committee said that the increase to the official land price plays an important role in contributing to its financial resources. Therefore, land prices for 2015 will account for movements and volatility in the market, ensuring the price approaches that of the market in order to balance the interests of both the State and land users and contribute to cutting land speculation.
The new land price is expected to apply from January, in 19 districts.
- land price