Land prices in Hanoi and Ho Chi Minh City have increased sharply but are still 'far away' from the market.

Ho Chi Minh City recently submitted a draft land price list to be applied from January 1, 2026, while Hanoi also issued a new land price list effective at the same time. A notable common point is that both localities have adjusted the land price level to increase sharply compared to the previous period.

Hanoi and Ho Chi Minh City are about to have new land price list.

In Ho Chi Minh City, the land price list to be applied from January 1, 2026 is in the drafting stage. The Department of Agriculture and Environment of Ho Chi Minh City said: This is an "important and urgent" task, because the land price list applied for the first time from January 1, 2026 is a mandatory requirement under the 2024 Land Law, and at the same time meets the needs of land management in the new context.

The Department of Agriculture and Environment of Ho Chi Minh City emphasized: The new land price list will overcome a series of limitations of the current price framework.

1 center of HCMC — According to the draft land price list of Ho Chi Minh City, the city will be built in 3 areas (Photo: ST)

According to the draft land price list of Ho Chi Minh City, the city will be built in 3 areas based on the pre-merger boundaries: Area 1 (Ho Chi Minh City), Area 2 (Binh Duong) and Area 3 ( Ba Ria - Vung Tau ).

In Zone 1, land prices in some areas considered “golden land” and “diamond land” of the city remain unchanged. For example, land prices on the three major streets of Nguyen Hue, Le Loi and Dong Khoi, in Saigon Ward, continue to be the most expensive, at 687 million VND/m2.

Some other routes also belong to Saigon ward, with prices remaining at the current level such as Lam Son Square (491.7 million VND/m2), Hai Ba Trung (450.8 million VND/m2), Huynh Thuc Khang (430.4 million VND/m2), Ham Nghi (429.3 million VND/m2).

Meanwhile, land prices on many roads are also expected to increase, even by 30-40%, especially in central areas such as Saigon, Tan Dinh, and Ben Thanh wards.

According to the draft, Can Gio is an area outside the center of Ho Chi Minh City (old) that recorded an increase of 10-20% on some important routes connecting residential areas and seaports such as Duyen Hai Street, Dao Cu Street, Giong Ao Street, Giong Chay Street, and Rung Sac Street.

In area 2, the highest expected land price is 89.6 million VND/m2, belonging to Yersin and Bach Dang streets, Thu Dau Mot ward. Also in this ward, there are many streets with prices ranging from 50-60 million VND/m2, such as Binh Duong Boulevard, Dinh Bo Linh, Hung Vuong, Doan Tran Nghiep... Some streets exceed 60 million VND/m2 such as Thich Quang Duc, Cach Mang Thang Tam.

In area 3, on average, land prices in these areas are expected to increase by about 13%, with some areas increasing by 30%.

In Hanoi, the city has issued a complete land price list and will officially apply it in 1 month. Land prices are divided into 17 areas after the administrative arrangement, instead of according to districts as before.

In the central areas of Hanoi, land prices were adjusted to increase by 2%. Of which, the highest residential land price is about 702 million VND/m2 applied to plots facing the road (location 1) on a series of routes such as Ba Trieu (section from Hang Khay to Tran Hung Dao), Dinh Tien Hoang, Hai Ba Trung (section from Le Thanh Tong to Quan Su).

2% is also the proposed general increase in areas 2 (wards within beltway 2), area 3 (wards from beltway 2 to beltway 3), areas 4 and 5 (wards outside beltway 3 on the right side of the Red River except Chuong My, Son Tay, Tung Thien), area 6 (wards within the boundary of Red River - Duong River - beltway 3).

Meanwhile, the land market is slowing down compared to the previous period. — According to Hanoi's new price list, land prices have mainly fluctuated and increased sharply in suburban communes. (Photo: CD)

According to the new price list, land prices mainly fluctuated sharply in suburban communes. Of which, area 9 (including 7 communes of Lien Minh, O Dien, Dan Phuong, Hoai Duc, Duong Hoa, Dong Son, An Khanh) increased the highest with 26%.

The highest new price in this group is on National Highway 32 from Xuan Phuong Ward to the intersection of the road to Kim Chung Di Trach urban area with 64.7 million VND/m2. The average land price at position 1 in area 9 is about 30.4 million VND/m2, while according to the current price list it is 26.8 million.

Next is area 7 (including 9 communes Tien Thang, Yen Lang, Quang Minh, Me Linh, Phuc Thinh, Thu Lam, Dong Anh, Vinh Thanh, Thien Loc) and area 10 (including 12 communes Dai Thanh, Thanh Tri, Ngoc Hoi, Nam Phu, Binh Minh, Tam Hung, Thuong Tin, Hong Van, Thanh Oai, Dan Hoa, Thuong Phuc, Chuong Duong) with the same proposed increase of 25%.

What is the land price list used for?

Mr. Nguyen Trung Tuan, a real estate expert, said that the new land price list was issued to serve land management and serve as a basis for calculating a series of financial obligations.

This is the legal basis for calculating land use fees when the State allocates land, allows change of land use purpose, calculates land rent and personal income tax when transferring real estate, and determines the compensation level when the State reclaims land.

Mr. Tuan believes that adjusting the land price list in an upward direction will create a two-way impact. On the one hand, people whose land is recovered will be compensated at a higher level, reducing complaints and negative reactions compared to before. On the other hand, those who complete procedures for granting “red books”, changing the purpose of use or paying taxes when transferring may have to bear additional costs.

According to this expert, for many years, the land price list of localities has been much lower than the actual transaction price on the market, in some places only 20-40%. This leads to budget loss, creates opportunities for profiteering, causes distortions in compensation, land use fees and taxes. Therefore, this adjustment of the land price list will help prices get closer to the market, increase transparency and limit law-evading behaviors.

However, Mr. Tuan also emphasized that the new land price list still does not fully reflect the market value. Because many areas, especially "golden land" and "diamond land", have much higher actual transaction prices. For example, in some prime locations in Hanoi, the market price can reach 1 billion VND/m2, about 1.5 times higher than the land price list. This shows that despite strong adjustments, the price list is still only for reference and cannot replace the market price in actual transactions.

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