The methodology and coefficients for determining the starting price of land possession and usage rights auctions have been newly approved

Mongolia • No.6/2025 • August 2025

In brief

In accordance with the amendments to the Land Law of Mongolia, the Minister of Construction and Urban Development's Order No. 208 dated December 14, 2018, titled "On the Approval of the Methodology", has been annulled.

In connection with this, by Order No. A/188 of the Head of the General Authority for Land Administration, Geodesy, and Cartography dated May 20, 2025, the following have been approved :

• The “Methodology for Determining the Starting Price of Land Possession and Use Rights Auction”, and
• The “Coefficient for Determining the Starting Price of Land Possession and Use Rights Auction”.

These documents, collectively referred to as the "Updated Methodology", are hereby summarized and presented to you.

Example calculation approved in the annex of the methodology

Example 1:

Let us determine the starting price for the auction of land possession rights for a 1 km long local road located in Undur-Ulaan soum, Arkhangai province. In this case, according to the Law on Roads, the width of the land strip for a local road is 60 meters (30 meters on each side from the road centerline). When calculated for a length of 1 km, the total area becomes 60,000 m², or 6 hectares.

• According to Annex 6 of Government Resolution No. 182 of 2018, the base unit price for 1 m² of land in Undur-Ulaan soum, Arkhangai province is 2,000 MNT.
• From Table 5 of this methodology, the coefficient corresponding to the column “Local road corridor” is 0.01.
• The starting price for the auction of land possession rights for the 60,000 m² area is: 2,000 MNT/m² × 0.01 × 60,000 m² = 1,200,000 MNT

Example 2:

Let us determine the starting price for the auction of land possession rights for a 500 m² of land designated for service use located in Zone 2 of the capital city's land valuation classification.

• According to Annex 3 of Government Resolution No. 182 of 2018, the base unit price for 1 m² of land in the capital city is set at 121,600 MNT.
• Referring to Table 1 of the methodology, the coefficient corresponding to “Commercial and Service Use” in Zone 2 is 1.115.
• The starting price for the auction of land possession rights for the 500 m² of land is: 121,600 MNT/m² × 1.115 × 500 m² = 67,792,000 MNT