Ho Chi Minh City removes obstacles for real estate projects.

The Ho Chi Minh City Real Estate Association has compiled and submitted 189 recommendations from 148 real estate projects to the Ho Chi Minh City People's Committee. To date, 3 projects have been resolved as directed by the Task Force for resolving difficulties and obstacles in investment projects in Ho Chi Minh City.

2023 was a difficult year for Ho Chi Minh City's real estate sector. It was the only sector to experience negative growth (-6.83%). The Ho Chi Minh City Real Estate Association compiled and submitted 189 recommendations from 148 real estate projects to the People's Committee of Ho Chi Minh City. To date, 3 projects have been resolved as directed by the Task Force for resolving difficulties and obstacles in investment projects in Ho Chi Minh City.

Meanwhile, 12 projects are being reviewed and implemented by relevant departments under the direction of the Ho Chi Minh City People's Committee. 41 projects do not meet the conditions for land use rights to be approved for investment in commercial housing projects. The Ho Chi Minh City Department of Planning and Investment has worked with and notified investors to consider changing the investment objective from commercial housing construction to social housing construction or to tender for the selection of investors to implement commercial housing projects. Dr. Tran Du Lich , Chairman of the Advisory Council for the implementation of Resolution 98, commented that many factors are needed to prevent a repeat of the "free fall" scenario seen in Q1 2023.

Besides injecting approximately 6,000 billion VND into the economy from disbursed public investment capital in January, the city should take action from the beginning of the year to create momentum. This means focusing on removing obstacles to allow the immediate commencement of several real estate projects. According to Nguyen Ngoc Hoa, Chairman of the Ho Chi Minh City Business Association, the city should coordinate policies synchronously. For example, there should be a policy to support interest rates for both homebuyers and builders; reactivating the mid-range housing segment, because there is currently a large demand for social housing and low-priced commercial housing (around 1.5-2 billion VND/unit).

The Ho Chi Minh City People's Committee announced that in 2024, the city will strengthen the implementation of central government mechanisms and policies to support businesses in their recovery and development. This includes solutions to develop safe, healthy, efficient, sustainable, and integrated markets, especially the real estate and social housing markets; reviewing and resolving obstacles for real estate projects; and supporting the restoration of cash flow for businesses. With these solutions, we can hope for more positive growth in the real estate sector in 2024. As Ho Chi Minh City Party Secretary Nguyen Van Nen stated at the conference summarizing the implementation of socio-economic development tasks in 2023 and outlining tasks for 2024, organized by the Ho Chi Minh City People's Committee, real estate businesses believe the market is warming up.

The real estate market is sensitive and complex, and its value to the economy is only fully realized when it experiences a crisis. It has a ripple effect, acting as a growth driver and contributing to the GRDP. Therefore, the city has a responsibility to implement policies and address the difficulties facing this market.

KHANH CHAU

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