Ho Chi Minh City proposes tougher subdivision rules for small land plots

Ho Chi Minh City authorities are proposing stricter regulations for land subdivision, setting new minimum area requirements for both residential and agricultural plots.

Under the draft proposal, the minimum size for a subdivided residential plot would be 36 square meters. For agricultural land, the proposed minimum area is 500 square meters.

The draft also introduces mandatory requirements for access paths and road-facing frontages. Officials say the measure is intended to tighten land management as the city undergoes rapid urbanization.

The proposal is currently in the public consultation phase and has not yet been officially approved. Lawmakers are also reviewing specific standards for frontage width and public access to ensure uniform application across the city.

Ho Chi Minh City’s latest proposal to overhaul land subdivision regulations marks a decisive move to curb fragmented urban sprawl and the proliferation of unregulated "lot-splitting" for quick sale. The draft policy aims to halt the formation of spontaneous residential clusters that lack essential infrastructure, such as standardized road networks, drainage systems, and public utilities. By raising minimum plot size thresholds and enforcing stricter requirements for street frontage and access, municipal authorities intend to compel landowners to transition from speculative subdivisions toward more formal, integrated urban development.

The proposed restrictions, however, present a complex policy trade-off. While the measure is a critical step toward long-term urban modernization, it risks deepening the city’s housing affordability crisis. Low-income earners—the primary demographic for small-lot purchases due to financial constraints—may find the dream of homeownership in Vietnam’s economic hub increasingly out of reach. Furthermore, the regulations pose significant hurdles for families seeking to divide land for inheritance and for retail investors who have long utilized small-scale land plots as a primary investment vehicle. For a burgeoning megacity like Ho Chi Minh City, the challenge remains balancing the necessity of institutionalized urban planning with the socioeconomic imperative of maintaining equitable housing access.

These regulations could directly impact Vietnamese-American families with property holdings in Ho Chi Minh City. For many in our community—from those in the nail salon industry to phở restaurant owners—investing remittances into land has long been a way to build a "nest egg" or secure an inheritance for relatives back home. If implemented, this new draft would create significant hurdles for subdividing these assets, particularly smaller parcels, and add a layer of legal risk for Viet Kieu investors navigating the already complex Saigon real estate market. Whether you are managing family estates from Little Saigon or looking to invest via EB-5 or F2B categories, these changes introduce new complications to property ownership in the motherland.