HCMC approves land price for Novaland’s stalled flagship urban complex project

Ho Chi Minh City’s authorities have approved the land price for Novaland Group’s (HoSE: NVL) flagship Nam Rach Chiec development, known as Lakeview City, marking a major step toward resolving long-standing legal and financial bottlenecks that have stalled the project for years.

The city’s Land Valuation Council endorsed the pricing for the 30.1-hectare project under new regulations issued by the National Assembly - the country's legislature - and the government.

The updated framework allows developers to settle outstanding land-use fees and restart projects delayed by valuation disputes.

For the portion of land exchanged against Novaland’s earlier investment in the 30.2-hectare Binh Khanh Ward site, where compensation and infrastructure costs have been verified, the valuation was based on 2008 prices, the year the land was revoked.

The remaining area, where land-use fees are still pending, was valued using 2017 benchmarks, when the land allocation decision for Lakeview City was issued.

The total land-use and leasing fees, previously estimated at nearly VND5.18 trillion ($196.66 million) under a 2021 tax notice, will be recalculated under the new assessment. The revised valuation will serve as the legal basis for Novaland to begin issuing land-use right certificates to Lakeview City homeowners.

Novaland had previously set aside a VND4.37 trillion ($166 million) provision for the project in its 2024 financial statements. The company said it expects to reverse the provision once the final payment obligations are confirmed, strengthening liquidity and supporting future operations.

Lakeview City is among the first major projects to benefit from HCMC’s new land-settlement mechanism, designed to unlock idle real estate assets and spur investment.

The city’s Department of Natural Resources and Environment said it has also submitted land valuation reports for other major developments, including the 1,330-unit New City project in Binh Khanh ward and The Tresor at 39-39B Ben Van Don street.

In the first 10 months of 2025, the department completed or submitted valuations for 62 projects, contributing an estimated VND64.2 trillion ($2.44 billion) to the city’s budget.

Last month, Novaland Group received investment approval for its flagship project worth $5 billion in the central province of Lam Dong after years of delay due to legal obstacles. The approval marks a major breakthrough for NovaWorld Phan Thiet, a 1,000-hectare resort and residential complex developed by Delta-Valley Binh Thuan Co. Ltd., a Novaland subsidiary.

Novaland shares ended up 3.88% to VND13,400 ($0.5) each on Tuesday.