Real estate business in Ho Chi Minh City is slowing down.

Many indicators decreased

Accordingly, real estate business activities in the first 6 months of the year grew by negative 11.58% over the same period, accounting for 3.5% of the city's GRDP. Meanwhile, in the second quarter of 2023 alone, the negative growth rate was up to 16.2%. Real estate business revenue also decreased by 8.3% over the same period. Of which, the first 4 months of the year decreased by 14.6%, the first 5 months of the year decreased by 11.5% over the same period.

The above data shows that the real estate market has still faced many difficulties in the recent period due to many market factors. However, at present, there are signs of recovery, slowing down the decline, leading to a gradual recovery of the construction industry.

Regarding licensing, in the first 6 months of the year, 689 new units were established (down 52.6%), with registered capital reaching VND 26,750 billion (down 63.5%) compared to the same period in the first 6 months of 2022. There were 3 newly licensed projects with registered capital of 5.8 million USD. 4 projects were adjusted with registered capital of 25.6 million USD and 25 capital contributions with 99.6 million USD.

Total foreign investment in real estate business in the first 6 months of 2023 was 131 million USD. This is a significant number because in the first quarter of 2023, only 6.9 million USD was invested, there were no new projects or capital adjustments. This shows that foreign investors are still interested in the Vietnamese real estate market. They even have high expectations for the upcoming recovery and are ready to invest in this field.

The above signs show that the activities to remove difficulties and obstacles for real estate businesses in Ho Chi Minh City have had positive developments.

Real estate business activities in Ho Chi Minh City are showing signs of recovery.

In recent times, the city has taken many steps to support businesses facing many difficulties, especially legal issues related to the project. Specifically, the Ho Chi Minh City People's Committee issued Official Dispatch No. 2049/UBND-DT dated May 17, 2023 to the Prime Minister 's Working Group on reviewing, urging, and guiding the removal of difficulties and obstacles in the implementation of real estate projects for localities and businesses to report on the implementation results of the requirements and some proposals and recommendations to the Working Group.

In particular, the city has classified problems related to social housing, renovation and reconstruction of apartment buildings, investment projects to build commercial housing, and urban areas. At the same time, it has grouped problems related to land, planning, investment, and other issues. For each problem, the city has specific proposals and recommendations to resolve them.

8 projects eligible for sale

In the second quarter of 2023, Ho Chi Minh City confirmed eligibility to sell and lease-purchase future housing products of 8 projects with a total of 6,313 houses, down 18.6% compared to the first quarter of 2023 (7,753 houses) and down 33.24% compared to the same period in the second quarter of 2022 (9,456 houses).

The city also noted that projects eligible for sale and lease-purchase of future housing in the quarter are projects that have been implemented in previous years and will not complete capital mobilization procedures until the second quarter of 2023. Therefore, the above data does not assess the actual situation of the current real estate market in Ho Chi Minh City.

Also in the second quarter of 2023, the high-rise apartment project combining commerce, services and offices in Thu Duc City with a land area of over 7,700 m2 and a scale of 650 apartments was approved for investment policy.

In addition, the city is also implementing 30 commercial housing projects with a scale of nearly 34,000 apartments and 222 low-rise houses. An apartment project with 166 units was completed this quarter. The city is also implementing 5 social housing projects with 3,788 units and 1 project will be newly licensed in the second quarter of 2023.

Many social housing projects are being implemented to relieve the "thirst" of this segment.

Notably, in the city, there are no projects allowing the transfer of land with invested infrastructure to build houses and there are no resort tourism projects.

In the second quarter of 2023, businesses were able to access credit capital due to the loosening policies of banks, but according to predictions, the city's real estate market has not changed strongly compared to the first 6 months of 2023 due to the lack of new construction projects.

Meanwhile, the Government and the city government must continue to focus on perfecting the legal framework, resolving internal difficulties, and promoting the liquidation of completed products. In order to soon revive the real estate market, bringing to the market many new products, especially low-cost segments that meet people's needs.

Source: https://www.congluan.vn/hoat-dong-kinh-doanh-bat-dong-san-tai-tp-hcm-dang-giam-da-tut-doc-post255869.html