Land-related revenue in HCM City surges 50% to reach $1b in 2024
Land-related revenue in HCM City surges 50% to reach $1b in 2024
Land-related revenue in HCM City has surged nearly 50 per cent year-on-year, surpassing VNĐ25.3 trillion (nearly US$1 billion) in 2024, according to data from its Department of Natural Resources and Environment.
New real estate projects in HCM City. Land-related revenue in the city has surged nearly 50 per cent year-on-year, surpassing nearly $1 billion in 2024. — VNS Photo Bồ Xuân Hiệp |
As of December 31, 2024, the total revenue generated from land in the city reached over VNĐ25.3 trillion, up 46.8 per cent or over VNĐ8.062 trillion compared to 2023.
Of the total, revenue derived from land use fees constituted VNĐ9.654 trillion, representing an increase of VNĐ3.792 trillion (64.7 per cent) from 2023.
Additionally, revenue from land rentals and water surface rentals reached VNĐ5.957 trillion, marking an increase of VNĐ866 billion (17 per cent).
In terms of revenue from real estate transactions, the figure for the past year was VNĐ9.692 trillion, up over VNĐ3.4 trillion (54 per cent) over 2023.
Revenue from property registration fees amounted to VNĐ2.408 trillion, up 50.3 per cent.
In addition, revenue from personal income tax related to real estate exceeded VNĐ7.284 trillion, up 55.4 per cent compared to the previous year.
According to data from the HCM City Real Estate Association (HoREA), the city’s real estate market recorded a growth rate of around 9 per cent in 2024.
Recently, HCM City authorities significantly raised land prices, with residential land in central districts now valued at over VNĐ687 million ($27,000) per square metre, while prices in the outskirts have risen to VNĐ2.3 million per square metre, reflecting increases ranging from four to thirty-eight times.
These new rates, which are effective until the end of 2025, will be utilised to determine land compensation, taxes, and administrative fees, with the aim of enhancing State tax revenue.
City authorities said they will be ensuring transparency and fairness in land pricing and compensation, to prevend tax evasion and delays in real estate development.
Its total state budget revenue was estimated at a historic milestone VNĐ508.5 trillion ($19.96 billion) in 2024, or 105.3 per cent of the yearly target and a 13.3 per cent increase from 2023.
The city has become the first city in Việt Nam to exceed VNĐ500 trillion ($19.6 billion) in budget revenue.
It has set a target this year of VNĐ520 trillion worth of total budget revenue, up 7.71 per cent from 2024.
