HCMC PROPOSES NO MARKUP ON OFFICIAL LAND PRICES

HCMC – HCMC’s Department of Natural Resources and Environment has proposed setting the land price adjustment coefficient, known as the K factor, at 1 for households and businesses, meaning land-use fees and rents would be calculated directly from the official land price table without any upward adjustment.

The proposal, included in the third draft regulation submitted by the department to the land price appraisal council, is intended to ease financial burdens on residents and businesses while supporting a recovery in the real estate market.

Under the proposal, households and individuals converting land-use purposes, receiving land allocations without auctions or obtaining recognition of land-use rights beyond prescribed limits would be eligible for the coefficient. Businesses and economic organizations receiving land allocations subject to land-use fees, leasing land from the State, or converting leased land into allocated land would also qualify.

The measure is based on National Assembly Resolution 254/2025/QH15, under which the K factor is a multiplier used together with the official land price table to calculate land-use fees, land rents, taxes, compensation, administrative fines and starting prices for land-use rights auctions.

City authorities said the proposal seeks to create a more balanced framework for land-related financial obligations amid changes to the land pricing system.

The move comes as HCMC faces competing demands among various stakeholders. Landowners whose properties are acquired typically seek higher valuations to maximize compensation, while households converting land-use purposes and businesses leasing land favor lower and more stable prices to reduce costs.

With a population of around 14 million and more than 160 land clearance projects under way, officials are seeking to avoid excessive increases in land-related charges that could trigger disputes and discourage investment.

The proposal also reflects efforts to smooth the transition to a land price framework that is increasingly aligned with market values. Keeping the coefficient at 1 would prevent land-use fees and rents from rising sharply, helping lower upfront costs for housing and infrastructure projects and encouraging private investment, according to the draft regulation.

Source: The Saigon Times