Shocked By The Land Price List In Ho Chi Minh City

From August 1, Decision 30 in which the land price list of 15 districts in Ho Chi Minh City is adjusted and added to become official becomes effective. However, the accuracy of this price list is still a controversial issue as it differs from one-to-one market prices, sometimes up to 10 times.

Ridiculous at a virtual price

Land price in District 2 -VND 5.2 million to VND15 million/sqm

This can be seen clearly at the price of East HCMC (District 2, District 9), which is planned by the Government to become the future administrative center of the city, said Le Hoang Chau – President of the Association Ho Chi Minh City Real Estate Association.

It is unbelievable that the region is aspiring to become a “second Singaporean”, converging many high-end real estate projects that own a surprisingly low land price if you do not want to say … , VND2 million to VND15 million. Specifically, VND5.2 million / sqm is the price of the 52-BTT section from Le Huu Kieu to Bat Nan, District 2.

The land price on the high street of Song Hanh expressway, An Phu ward, district 2 has been hard to understand since the passage from Tran Nao to Mai Chi Tho is difficult to understand, especially when it is a large-scale project. The traffic of the city, linking districts 1, 2 and 9. Many real estate investors have paid attention to this area, so the price of VND15 million / sqm is difficult to explain.

The land on Song Hanh highway in An Phu Ward, District 2 is valued at only VND15 million / sqm

Land price in District 9 – VND4.2 million/ sqm (?!)

It has been crazy about the land fever in 2017, with rumors being that the capital of the administrative center is pushing the price of land up to VND40mil or even VND60million. The land cannot be lower under the updated price list of regulation 30.

Specifically, Vo Chi Cong road from Ba Cua bridge to Phu Huu bridge has a land price of VND4.2 million/ sqm. It is a strange thing that even though there are no storms, the speed of infrastructure development in district 9 has been enough to bring the price of land up to 2-3 times.

Ever been the center of land fever but District 9 land price only … VND4.2 million / sqm?

Land price in  Phu Nhuan district – VND13.8 million to VND30 million/sqm

This is also happening in downtown districts such as Phu Nhuan, despite the volume of news posted with the average asking price of VND89 million-VND140 million/sqm in the second quarter of 2017, land prices are listed. Turns out pretty duck, in the range of VND13.8 million to VND30 million. Typically Hong Ha road with the assessed price is only VND16 million- VND18 million.

According to the survey, the current market price is falling to the range VND150 million-VND200 million / sqm and fewer sellers.

Land prices in District 10, Go Vap District, Nha Be District … not better

Even District 10, where the convergence of commercial crowded area also suffered the same price decline with the land price is only VND22 million-VND23.4 million/sqm. Similarly, Go Vap has three price routes that are regulated by Decision 30. The most prominent of these is Nguyen Thai Son Street, the central route known as the most expensive, has a starting price. ranged from VND11.8 million to VND20 million /sqm.

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Le Van Luong Street Nha Be District is also pensive with a compensation price of only VND2.4million to VND4.2 million …

The price of land on the expensive road in Go Vap District – Nguyen Thai Son Street is not quite as well

Land prices plummeted, people confused

People are most surprised by the decision to 30 “land where one price” is none other than the people living in the newly adjusted areas.

Ms. Phu, buying the house in Hoa Hao Street, Ward 5, District 10 said her 47sqm apartment was asked to buy for VND8.8 billion, VND190 million/sqm. Comparing this price with the adjusted price of VND23.4 million, the result is a true heaven. Looking at this gap, Ms. Phu worried that the extended Hoa Hao Road, which only received a compensation of 1/7 market price, is indeed unfair.

Mr. L., the front of Kenh Street 19-5 was amazed to know how much he knows the road he is living is valued at VND8.4 million / m2 land. His friends who know this price and come to find out they get the shaking head. “Dreaming, now buy the land of Tan Phu district is also the worst VND50 million / sqm then!”, Mr. L. his tongue when talking about the transaction price of land approximately 8 times the assumed price.

According to him, this price is difficult to accept, because the risk of his land falling into the project planning, the disadvantage for the surrounding people will become too large.

People suffering from land price differences in many areas in Ho Chi Minh City are the people of those areas.
Need to adjust for reasonable land prices in HCM City

Need to adjust for reasonable land prices in HCM City

Facing the land price list is astonishing, not only for people suffering losses in the case of compensation but businesses are also affected. Economist Dinh The Hien pointed out the good side of the matter, it is convenient for people when doing the red book. However, the depth of the price is not appropriate for companies that own or are located on the land, not only to facilitate the flow of resources to a pocket, it is the people in charge of that business.

In response to the widespread complaints about land prices, representatives of the HCM City Department of Natural Resources and Environment said that the decision 30 to set the land price frame is not suitable with the actual situation in the localities of Ho Chi Minh City due to high dependence on Law In general, there are still many inadequacies in the mechanism for evaluating land price brackets, leading to the fact that the land price regulations vary between 30% -50% of the market price and cause many urgent for the citizen.

A high-accuracy HCM City land price frame is urgent

Decision 30 is amended to bring equity to the population living in areas with undervalued land that is important, but up to the date of implementation is a long process.

During that time, it was necessary to have reliable and close to market prices for people and businesses so that they could have access to and keep an eye on the land market in Ho Chi Minh City.

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