REAL ESTATE REVENUE IN HO CHI MINH CITY CONTINUES TO INCREASE.

The real estate sector in Ho Chi Minh City is expected to generate a revenue of 173,000 billion VND in the first 8 months of this year, marking a 6.1% increase compared to the same period last year.

This information was recently announced by the Ho Chi Minh City Statistical Office.

The city’s real estate market has shown positive growth since the beginning of the year, with a 2.51% increase in the first quarter, followed by a 2.94% increase in the second quarter, and finally reaching 6.1% in the first 8 months compared to the same period in 2023. However, last year saw a continuous decline in real estate revenue in Ho Chi Minh City.

From the second half of 2022 to the end of the first quarter of 2023, the market hit its lowest point with a negative growth rate of 16.2%.

In the second quarter of 2023, the negative growth rate showed signs of improvement, decreasing to 11.5%. By the end of last year, Ho Chi Minh City had overcome the most challenging period, but still experienced a negative growth rate of 6.38%. It was not until the first quarter of this year that the city truly saw an improvement in its real estate market.

Bất động sản khu Nam TP HCM, đoạn qua huyện Nhà Bè, tháng 7/2024. Ảnh: Quỳnh Trần

Real estate in the southern part of Ho Chi Minh City, passing through Nhà Bè district.

According to the General Statistics Office, in the past 8 months, the total registered foreign investment in real estate business in Vietnam reached $2.4 billion. The country saw the establishment of 3,155 new real estate enterprises and the dissolution of 814 enterprises. The number of licensed operating enterprises was 958, with a registered capital of 37,432 billion VND, a decrease of 2.3% compared to the same period last year.

The recovery of real estate business in the city is also reflected in the growth of credit in the area in recent months. Mr. Nguyen Duc Lanh, Deputy Director of the State Bank’s branch in Ho Chi Minh City, stated that in the first 7 months of the year, the city’s overall credit increased by 3.9%, with real estate credit reaching over 1 million trillion VND, accounting for 27.6% of the total credit balance, an increase of 5.5%. Housing credit (including social housing, commercial housing, and other housing) had the highest proportion, accounting for about 57% of the total credit balance in the area.

The Ho Chi Minh City Real Estate Association (HoREA) also assessed that the most difficult period of the real estate market has passed, and related policies are proving effective, with reduced interest rates for loans and increased access to capital for individuals and businesses. Overall transactions in the market are developing positively.

HoREA believes that clear signs of recovery have emerged since August 1st, and the Land, Housing, and Real Estate Business laws, which are expected to resolve legal obstacles for about 1,000 projects nationwide, will create more favorable conditions for accessing capital and credit.

In addition, the restructuring of investors, product adjustments, and price reductions will help the market have prospects for recovery. The association predicts that the supply and demand for real estate in the second half of the year will continue to improve, with an estimated increase of about 20-30% compared to the beginning of the year. Liquidity in the Ho Chi Minh City market is also improving and will have the most significant changes at the end of the year when the efforts of state management agencies and businesses prove more effective.

According to the VNEXPRESS.