While there are few, if any, signs of the real estate bubble bursting in 2020, the Ministry of Construction said that land prices could increase in some areas.
Land prices in Ho Chi Minh City in the 2020-2024 period will be kept stable, with the highest price listed at VND162 million per square meter and the lowest, VND1.5 million, helping stabilize market prices.
Many localities have raised their land prices by up to 70%, while on the national scale the Government is expected to issue a new price framework, driving up prices by 30%.
Recent proposals in several cities to increase land prices, together with the current restrictions placed on new projects, are expected to cause headaches for real estate developers, leaders and relevant associations.
Multiple experts have expressed concern over the Ministry of Natural Resources and Environment’s proposal to double the land prices, as higher prices will result in higher land use fees for businesses and residents.
Between 2016 and 2018, it was hard for Vietnamese people to buy real estate with accumulated money as land prices rose too fast.
Located in the center of District 1, Ho Chi Minh City (HCMC), Dong Khoi is known as a million-dollar street or where land is more expensive than gold. There are houses for sale for up to VND 1.5 billion per sqm, setting a new record high in Vietnam.