Real estate business revenue in Ho Chi Minh City increased, reaching nearly 5 billion USD.

Ho Chi Minh City's real estate business has returned to positive growth - Photo: NGOC HIEN

Real estate business in Ho Chi Minh City has returned to positive growth, increasing from 2.51% in Q1 to 2.94% in Q2 2024. This is the lowest growth rate among the nine key service sectors of Ho Chi Minh City, but it is a positive figure compared to the same period in 2023.

Real estate business revenue is better.

According to the Ho Chi Minh City Statistics Department, in the first six months of the year, revenue from the city's real estate business reached an estimated 123,887 billion VND, an increase of 6.1% compared to the same period last year.

Over the past six months, 570 businesses were licensed to operate in the real estate sector, with registered capital reaching VND 27,851 billion. While the number of licenses issued decreased by 17.3% compared to the same period last year, the capital increased by 4.1%.

In 2023, real estate business growth in Ho Chi Minh City was -6.38%. However, by 2024, real estate business had returned to positive growth, increasing from 2.51% in the first quarter to 2.94% in the second quarter of 2024.

"The real estate market has moved past its slump as relevant policies have proven effective, lending interest rates have decreased, and people and businesses have increased access to capital," the Ho Chi Minh City Statistics Department stated.

In the first six months of the year, the city issued 3,396 certificates of land use rights, ownership of houses and other assets attached to land for the first time, and registered changes to 178,680 certificates for organizations and individuals in the city.

Real estate loan balances are increasing.

Meanwhile, the State Bank of Vietnam's Ho Chi Minh City branch reported that real estate lending in the city has maintained positive growth over the past three months.

Specifically, lending increased by 0.96% in March, 1.15% in April, and 1.15% in May. Total outstanding real estate loans in the city reached VND 992,800 billion, accounting for 28% of total outstanding loans in the area and increasing by 2.78% compared to the end of last year.

According to the State Bank of Vietnam's Ho Chi Minh City branch, loans for the purpose of purchasing residential properties still account for the highest proportion, at 68% of the total outstanding real estate credit in the city. Housing credit has seen a resurgence in growth, after experiencing negative growth in previous months.

In addition, real estate credit for the development of infrastructure in export processing zones, industrial parks, and office buildings for lease continued to maintain the highest growth trend compared to other sectors. Specifically, credit for export processing zones and industrial parks increased by 9.47%, and credit for office buildings and high-rises increased by 11.2% compared to the end of 2023.

Although the proportion of outstanding loans to this sector is low compared to the total real estate credit outstanding, the State Bank of Vietnam's Ho Chi Minh City branch assesses that the increase in credit in this sector reflects a development trend and is a positive factor impacting production, business activities, and economic growth.

The State Bank of Vietnam's Ho Chi Minh City branch assesses that, in the context of low capital absorption in the economy, the growth of the real estate market will have a positive impact and effect on other sectors, including banking credit activities.

Speaking to Tuoi Tre Online , representatives from notary offices said that the increase in revenue from the real estate sector is partly due to the fact that the declared value of real estate transactions is now closer to the actual value, much higher than the previous declarations.

The head of a notary office said that in the past, to "avoid" paying high taxes, real estate transactions were usually only declared at a few tens to a few hundred million dong, but now that situation no longer exists, all transaction documents are over 500 million dong.

If the declared price is lower, the tax will be refunded, causing significant complications and difficulties in subsequent procedures. Therefore, people have been declaring prices closer to the actual selling price, resulting in higher tax revenue than before.

Source: https://tuoitre.vn/doanh-thu-kinh-doanh-bat-dong-san-o-tp-hcm-tang-dat-gan-5-ti-usd-20240701184630242.htm