The new land price framework in Ho Chi Minh City changes after the merger

Ho Chi Minh City Land Prices Surge After Administrative Merger, Satellite Cities Benefit

Policy Background

Recently, the Vice Chairman of the Ho Chi Minh City People’s Committee assigned the Department of Agriculture and Environment (NN&MT) to take the lead, in coordination with the Department of Justice and the Department of Finance, to study the legal basis, advantages, and disadvantages of various approaches to implement the new land price framework effective from January 1, 2026. This marks an important step following the administrative merger, aiming to unify management mechanisms and adjust land prices in line with market realities.

Record-High Land Prices in Ho Chi Minh City

According to the current land price table (valid until the end of 2025), property values in central Ho Chi Minh City have soared to record levels:

• Nguyen Hue, Le Loi, Dong Khoi (District 1): VND 687.2 million/m², four times higher than the previous framework.

• Dong Du Street: VND 409 million/m².

• Hai Ba Trung Street: VND 350–450 million/m², depending on the section.

• Ton Duc Thang Street (from Me Linh Square to Nguyen Tat Thanh Bridge): VND 447 million/m².

• Nam Ky Khoi Nghia, Nguyen Thi Minh Khai, International Square (District 3): around VND 305–340 million/m².

For agricultural land, prices are categorized into three zones:

• Zone 1 (central districts): annual crop land up to VND 675,000/m².

• Zone 2 (outer districts and Thu Duc City): lower but still significantly rising.

• Zone 3 (Binh Chanh, Hoc Mon, Cu Chi, Nha Be, Can Gio): perennial crop land up to VND 810,000/m²; high-tech agricultural land VND 320,000/m².

Rising Prices in Satellite Provinces

After the merger, neighboring provinces also recorded sharp increases:

• Binh Duong (former): In Thu Dau Mot City, prime roads like Yersin, Bach Dang, Cach Mang Thang 8, Binh Duong Avenue reached up to VND 52.16 million/m², nearly 38% higher than the old framework. In Thuan An City, some segments rose 49%, while in Di An City certain areas surged almost 84%.

• Ba Ria – Vung Tau (former): Prices peaked at VND 78 million/m², up 20–30% on average. Rural areas also jumped, with some locations such as Hung Vuong and Vo Van Kiet roads in Hoa Long Commune hitting VND 12.3 million/m².

Apartment Prices in Ho Chi Minh City Remain High

At the August 22 seminar “From Ho Chi Minh City to Satellite Provinces – New Opportunities for Real Estate”, Mr. Vo Huynh Tuan Kiet, Director of CBRE Vietnam’s Residential Marketing Department, noted:

• The average primary apartment price in Ho Chi Minh City reached VND 82 million/m² in the first half of this year, up nearly 30% year-on-year.

• In the central area, new projects are selling at VND 110–120 million/m², with almost no offerings below VND 100 million/m².

He emphasized that even with Ho Chi Minh City merging with Binh Duong and Ba Ria – Vung Tau, expanding land supply, housing prices in the inner city and newly merged areas remain unlikely to cool down. However, buyer and investor sentiment has shifted toward accepting housing in Binh Duong, Dong Nai, and Long An, where infrastructure connectivity continues to improve.

Market Supply and Development Division

According to CBRE, nearly 80% of new supply now comes from suburban and satellite areas:

• Binh Duong apartment prices are rising 14% annually.

• Dong Nai: 15% annually.

• Long An: up to 21% annually.

Post-merger, market roles have become clearer:

• Ho Chi Minh City: high-end, luxury apartments and premium landed housing.

• Binh Duong (former): mid-range, affordable apartments and social housing.

• Ba Ria – Vung Tau (former): resort real estate and logistics properties.

Following the administrative merger, Ho Chi Minh City and surrounding provinces have established a new, higher price baseline. While land supply and infrastructure expansion create opportunities, central housing prices remain stubbornly high. Meanwhile, satellite cities such as Binh Duong, Dong Nai, Long An, and Ba Ria – Vung Tau are becoming attractive investment hotspots, driving population and capital flows outward.

This trend reflects Ho Chi Minh City’s strategy of developing a super-metropolitan area based on TOD (Transit-Oriented Development), forming corridor urban clusters closely linked with its satellite cities.