Downtown HCM City. The city has increased the coefficient to calculate residential land prices for acquisition to up to 25. VNA/VNS Photo

HCM CITY — HCM City’s residential land price coefficient for compensation payment this year is between three and 25 while for agricultural lands is 38.

Under the current regulations, official land prices are only amended every five years by the city government, and so the coefficient – (the K coefficient) or the number of times by which land prices are multiplied to match market prices – is adjusted every year.

The new coefficient takes effect on March 18.

The areas with the highest rates include Hóc Môn District (10-25 times), Thủ Đức city (6-25 times), Bình Chánh District (6-22 times), Nhà Bè District (10-21 times), and Củ Chi District (13-20 times).

To provide an example, the official price on Trần Não Street in Thủ Đức City is VNĐ22 million per square metre. The K coefficient there, depending on exact location is 6-25. Thus anyone whose land is acquired under eminent domain will be paid VNĐ132-550 million per square metre.

In addition, the coefficient of farmlands has gone up to a maximum of 38 this year from 35 last year.

The areas with the highest coefficient are Bình Chánh District (15-38 times) and districts 1, 3, 4, 5, 6, 10 and 11, and Tân Phú, Tân Bình and Gò Vấp districts (35 times).

The coefficient is also applied to calculate fees when people want to acquire land-use rights or change land use.

Compensation and site clearance for public projects remain a serious problem in the country’s largest city, causing many key public projects to be delayed for years.

But the city has promised drastic measures this year to speed up a number of key projects such as ring roads 3 and 4, the HCM City-Mộc Bài Highway and others. — VNS