Land lots at a housing project in Thủ Đức City. Photo nld.com.vn

HCM CITY — HCM City’s land adjustment coefficient (the K coefficient) will be up to 35 times the official prices this year.

Under current regulations, the official land prices are fixed every five years by the city government, and so the K coefficients, revised every year, are imperative to keep up with market prices.

The municipal People’s Committee uses the K coefficient for, among other things, calculating the compensation to be paid to people whose lands are taken over for public projects.

With effect from August 25 the coefficient for residential land will be two to 15 times the official price depending on location. The areas with the highest coefficient include Nhà Bè, Cần Giờ, Hóc Môn and Củ Chi districts and Thủ Đức City.

This means households whose lands are taken over by authorities will receive compensation of up to 15 times the official rate per square metre.

The coefficient for agricultural lands is five to 35, with districts 1, 3, 4, 5, 6, 10, and 11 having among the highest rates.

When people want to acquire land-use rights or change the purpose of land use, they also have to pay fees based on the coefficient.

Since the market prices of land are significantly higher than the official rates, the coefficients are indispensable, experts said.

Compensation and site clearance for public projects remain a major issue in HCM City, with many key ones delayed for years as a result. — VNS