Real estate market still has negative growth but has recovered

According to the report of the Department of Construction, real estate business activities still face many difficulties but have gradually recovered, with the growth in the following quarter being less negative than the previous quarter. Specifically, the whole year of 2023 recorded negative growth (-6.38%) compared to the same period last year, but the data for the first 9 months of 2023 recorded negative growth (-8.71%); The first 6 months of 2023 recorded negative growth (-11.58%).

"The real estate market still faces many difficulties but has gradually recovered, with growth in each quarter being less negative than in the previous quarter. Along with Ho Chi Minh City's efforts in disbursing public investment capital, the construction industry has recovered. In 2023, the construction industry grew by 4.48% over the same period," the Department of Construction's report stated.

In 2023, the Ho Chi Minh City real estate market will welcome 19 commercial housing projects that are announced to be eligible for sale and lease-purchase of future housing products. Specifically, 17,753 units will be put on the market, including 16,500 apartments and 1,253 low-rise houses.

Ho Chi Minh City real estate market is still negative but has shown a remarkable recovery. — Ho Chi Minh City real estate market has had a significant recovery.

Of which, the high-end segment has 11,334 units and the mid-range segment has 5,051 units, there is no housing in the affordable segment. Thus, the housing supply brought to the market in 2023 increased by 20.6% over the same period last year. According to the Ministry of Construction 's request, inventory products are calculated from the time after one year from the date the real estate is eligible to be put into business, but is not sold or has not been sold. Thus, the old supply in Ho Chi Minh City has been fully traded, there is no inventory.

Regarding real estate businesses, in 2023, 1,541 units were established, down 38.7% over the same period, and the registered capital reached VND 62,142.1 billion, down 44.9%. The contribution of real estate businesses to the city's GRDP last year remained at 3.6% (3.7% in 2022, 3.6% in 2021).

Similarly, real estate business revenue in the fourth quarter of 2023 also recovered, reaching more than VND 230,100 billion for the whole year last year, down only 2.1% compared to 2022 (down 8.3% in the first 6 months and down 14.6% in the first 4 months).

Regarding foreign investment in the real estate business sector, in 2023, it attracted 873 million USD of foreign investment capital (ranked 3rd among industries and sectors). Of which, newly registered capital was more than 230 million USD; adjusted registered capital was 104 million USD; capital contribution and share purchase was 538 million USD.

The Department of Construction also said that real estate business activities still have significant attraction for foreign investment capital and there are major changes in investment structure, investment capital for new projects or capital adjustment for ongoing projects accounts for a low proportion compared to capital contribution and share purchase activities.

Source