Ho Chi Minh City real estate growth is positive, each quarter is higher than the previous quarter

From negative growth for the whole year of 2023, real estate business in Ho Chi Minh City in the first half of 2024 has returned to positive growth, with each quarter higher than the previous quarter.

The real estate market has passed the period of stagnation when relevant policies have been effective, lending interest rates have decreased, and access to capital for people and businesses has increased. Transactions in the real estate market in general are developing positively.

According to the report of the Ho Chi Minh City Statistics Office, the revenue of the real estate business sector in the first 6 months of 2024 is estimated at 123,887 billion VND, an increase of 6.1% over the same period. Thus, the City earns an average of more than 20,600 billion VND per month.

Revenue from real estate is also a bright spot. In the first half of this year, the City collected nearly VND7,170 billion, while in the same period last year it only reached VND4,650 billion.

In the first 6 months of 2024, the City issued 3,396 first-time certificates (3,391 certificates for individuals, 5 certificates for organizations); registered changes in 178,680 certificates for organizations and individuals in the City (2,736 certificates for organizations; 175,944 certificates for individuals).

Thus, looking back at the whole year of 2023, when the entire real estate market struggled with a series of issues related to legality, capital sources, etc., the growth of this industry recorded a negative growth rate of 6.38% for the whole year. In the first quarter of 2023 alone, it was negative by 16.20%. By 2024, real estate business had returned to positive growth, from an increase of 2.51% in the first quarter to 2.94% in the second quarter of 2024.

After 4 consecutive quarters of negative growth in 2023, Ho Chi Minh City's real estate industry returned to positive growth in the first half of 2024. Chart: Trong Tin

Thus, entering the first half of 2024, the City's real estate market has shown encouraging signs when revenue is stable, growth is low but the following quarter starts to be higher than the previous quarter.

This is considered the initial result of a long process of efforts by the City government and real estate businesses in the area to remove legal difficulties, as well as restructuring activities that are still taking place very strongly.

According to the reporter of the Investment Electronic Newspaper - Baodautu.vn , although in the first half of the year, no new real estate projects were announced by the City Department of Construction as eligible to sell future housing, some new projects have been approved for investment policy.

For example, in the first quarter of 2024, there is the Rita Vo Trade Center, Service Center, and Luxury Apartment project on Nguyen Van Cu Street, District 5.

By the second quarter of 2024, there will be a number of projects such as the Apartment Complex project in Phong Phu commune, Binh Chanh district of Khang Nam Real Estate Joint Stock Company; Dong Quang Housing Project in Hiep Thanh ward, District 12 of Dong Quang Knitting Joint Stock Company; Metro Star Apartment and Commercial Complex project in Phuoc Long A ward, Thu Duc city of Metro Star Investment Joint Stock Company.

Along with the newly approved investment projects, some projects have also begun to restart after their obstacles were removed. A previous report by the Ho Chi Minh City Real Estate Association (HoREA) showed that the city has more than 148 projects with legal problems that cannot be implemented or cannot carry out investment and construction procedures.

However, thanks to the active activities of the Prime Minister 's Working Group, which closely coordinated with the Working Groups of localities, along with the self-efforts and cooperative spirit of real estate project investors, the City has resolved difficulties for 44 projects out of a total of 148 stuck projects, reaching 30%.

Assessing the market's growth potential, HoREA predicts that signs of recovery will be evident from the second half of 2024. Because the biggest legal issues are being resolved by state agencies through draft laws amending the Land Law, Housing Law, Real Estate Business Law, etc. Hundreds of projects are also being resolved, along with investors restructuring, restructuring products and reducing housing prices, which will help the market have prospects for recovery.

Source: https://baodautu.vn/batdongsan/bat-dong-san-tphcm-tang-truong-duong-quy-sau-cao-hon-quy-truoc-d219002.html