The first land price list in HCMC was approved by the HCMC People’s Council and has been applied since January 1, 2026. According to the 2024 Land Law, there are 12 cases applying the land price list.
However, under the National Assembly’s Resolution No.254/2025, which regulates mechanisms and policies to remove obstacles in implementing the Land Law, only 5 cases apply the direct land price list, while the last 7 cases are determined by the land price list multiplied by the K coefficient. Additionally, Resolution 254/2025 requires provinces and cities to issue the K coefficient no later than July 1, 2026.
Regarding the application of the K coefficient for calculating land use fees, land rental fees, and compensation when the State recovers land in HCMC, Head Dao Quang Duong of the Land Economics Division (the HCMC Department of Agriculture and Environment) stated that while waiting for the K coefficient to be issued, HCMC continues to implement the 2024 Land Law. Accordingly, the above cases will still be calculated based on the new price list without multiplying by the K coefficient.
As to the progress of developing and issuing the K coefficient, Mr. Dao Quang Duong informed that the department has coordinated with other municipal departments to submit a draft to the HCMC People’s Committee. Once approved, the department will select a consulting contractor to determine the coefficient for over 11,000 streets by April, and the K coefficient will be issued before July 1.
The development of the K coefficient will be carried out rigorously and carefully to protect the rights and obligations of citizens, businesses, and the State. The K coefficient includes adjustments for market fluctuations, planning, and other factors affecting land prices.
“According to a preliminary survey, the K coefficient for calculating land use fees when changing land use purposes and calculating compensation is expected to be 1.2 times or higher depending on the location. For agricultural land, the K coefficient may be higher,” he shared.
Lawyer Nguyen Van Hau of the HCMC Bar Association argued that developing the K coefficient must ensure objectivity and fairness. The implementing unit needs to consider the profitability of the land plot and how citizens can benefit. This coefficient must be calculated so that land use fees do not spike excessively compared to those before the application.
In addition, it’s necessary to collect feedback from affected parties to avoid risks for citizens and businesses. A thorough evaluation is needed to prevent tax revenue loss while enhancing the land value brought to citizens, fostering a healthy investment environment.
Commenting on the coefficient’s development, Director Pham Viet Thuan of the Institute of Economics Environmental and Resources remarked that the K coefficient is a state management tool for land and should be calculated based on the purpose of land recovery or use. “For cases of inviting strategic high-tech investments from the State, the K coefficient could be less than 1 to support business development and create more resources for the local economy,” he noted.
Meanwhile, Chairman Le Hoang Chau of the HCMC Real Estate Association (HoREA) pointed out that HCMC’s first land price list has just been applied. Issuing an additional K coefficient greater than 1 would burden those paying land use fees. Therefore, a reasonable K coefficient is needed. “The K coefficient applied for 2026 should be set at exactly 1, meaning no increase and no decrease. In subsequent years, it could be adjusted up or down depending on the market situation,” he proposed.
7 cases applying the K coefficient:
- Calculating land use fees at resettlement areas for people compensated with residential land, and people allocated resettlement residential land who are not eligible for standard residential land compensation.
- Calculating land use fees when the State recognizes the residential land use rights of households and individuals, or when changing land use purposes.
- Calculating land rental fees when the State leases land with annual rental payments.
- Calculating land use and rental fees when the State recognizes land use rights via land allocation with fees, or land lease with a one-time rental payment for the entire lease period for households and individuals.
- Calculating the starting price to auction land use rights when the State allocates or leases land for plots that have already received technical infrastructure investment according to detailed construction planning.
- Calculating land use fees for land allocation without auctioning land use rights for households and individuals.
- Calculating land use fees for selling state-owned housing to current tenants.
Additionally, calculating land use fees and rental fees for economic organizations, as well as compensation when the State recovers land, is also implemented according to the land price list multiplied by the K coefficient.
