Under the decision, the K coefficient is determined by multiplying three component coefficients, including the market fluctuation adjustment coefficient, the planning adjustment coefficient, and the coefficient reflecting other factors affecting land prices.
Specifically, the formula is K = K1 × K2 × K3, where K1 is the market fluctuation adjustment coefficient, K2 is the planning adjustment coefficient, and K3 is the coefficient accounting for other factors affecting land prices.
Under the regulation, both K1 and K3 are fixed at 1. Meanwhile, K2 is determined based on the land use coefficient of the land parcel and the applicable construction planning.
According to Mr. Dao Quang Duong, Head of the Land Economics Division under the Ho Chi Minh City Department of Agriculture and Environment, land valuation for land clearance and site acquisition will be determined on a project-by-project basis to ensure fairness with projects for which land prices have already been approved.
For projects with mixed-use purposes under construction planning, Decision No. 45/2026/QD-UBND does not apply. For example, if a developer undertakes a high-rise project comprising both residential and commercial functions, the K coefficient will not be used; instead, a specific land price must be determined.
For households and individuals seeking to change the land use purpose, only a K coefficient of 1 will apply. Meanwhile, for projects with a single land use purpose under the applicable construction planning, the K coefficient is calculated using the formula K = K1 × K2 × K3.
Mr. Dao Quang Duong also noted that applying a high K coefficient to land leased with annual rental payments could have a significant impact on socio-economic development. Therefore, setting the K coefficient at 1 for this category is intended to ensure a balanced distribution of benefits between businesses and the State.
The Ho Chi Minh City Department of Agriculture and Environment is expected to convene a meeting later this week to implement and provide guidance on the enforcement of Decision No. 45/2026/QD-UBND.
