Real estate growth returns with many expectations

The market is on the rise

The Ho Chi Minh City Statistics Office has just announced the socio-economic situation and some key economic indicators in the first 6 months of 2024 compared to the same period. Thereby, the total GRDP increased by 6.46% over the same period (estimated at 567,648.7 billion VND).

Regarding real estate business activities, the report of the Ho Chi Minh City Statistics Office shows that the real estate market in Ho Chi Minh City is still on a good growth trajectory.

Specifically, in the first 6 months of 2024, revenue from the real estate business sector in this city is estimated at VND 123,887 billion, an increase of 6.1% over the same period.

Previously, in 2023, real estate business growth in Ho Chi Minh City was negative 6.38%. By 2024, real estate business had returned to positive growth, from an increase of 2.51% in the first quarter of 2024 to 2.94% in the second quarter of 2024.

Ho Chi Minh City has growth rates in different industry groups, in which the real estate sector has grown positively compared to the same period, showing that the market is showing signs of improvement.

The General Statistics Office assessed that the real estate market has passed the period of stagnation when relevant policies have been effective, lending interest rates have decreased, people and businesses have increased access to capital, and real estate business revenue has increased by 6.1%.

According to the report, from January 1, 2024 to June 20, 2024, Ho Chi Minh City licensed 25,248 enterprises with registered capital reaching VND 214,716 billion, an increase of 9.6% in licenses and 1% in capital over the same period.

The number of licensed real estate businesses was 570 units and registered capital reached VND27,851 billion, down 17.3% in licensing and up 4.1% in capital. The housing and construction materials price index decreased by 0.03%, of which rental housing prices increased by 0.08%.

Experts say that Ho Chi Minh City is one of the country's leading economic centers in business, trade, services, transportation, etc., attracting a lot of capital from both domestic and foreign sources.

Since the Covid-19 pandemic in 2021, Ho Chi Minh City has overcome many difficulties to achieve impressive growth in many different industries, including real estate. The fact that the real estate market has had many positive changes in the first 6 months of 2024 will continue to help boost the economy of this industry in the last months of the year.

Policy mechanisms will help the real estate market recover more and more.

According to information from the Ho Chi Minh City Real Estate Association (HoREA), the period from 2020 - 2023 is a "recession" for the entire real estate market in the country in general and Ho Chi Minh City in particular.

Mr. Le Hoang Chau, Chairman of HoREA, commented: “From the first quarter of 2023, it can be considered the 'bottom' of the real estate market, because it has to go through a series of difficulties from the world economic market and the domestic market. However, from the third and fourth quarters of 2023 to early 2024, the real estate market gradually recovered, showing that the real estate market has overcome the most difficult period.”

According to Mr. Le Hoang Chau, HoREA forecasts that the market will grow normally again from 2025 onwards (due to the "delay" of policies and regulations issued by the state). If "supported" by important policy incentives such as the 2024 Land Law, 2023 Housing Law, and 2023 Real Estate Business Law taking effect in August 2024, the market will soon recover.

Real estate is still a channel attracting investors.

Real estate market data for the first 6 months of 2024 from Batdongsan.com.vn shows that most investment channels have recorded positive signs compared to 2023. Of which, real estate is still the channel with the highest investment yield. According to Batdongsan.com.vn's price history tool, as of June 2024, the average selling price of real estate increased by 24% compared to the beginning of 2023.

Mr. Bach Duong, General Director of Batdongsan.com.vn commented: “The Government's proposal to allow the Land Law, Housing Law, and Real Estate Business Law to take effect from August 1, 2024 is a positive signal, helping to clarify the law and speed up the recovery process of the real estate market.

The effective laws will promote more consistent and realistic land valuation, tighten requirements for investors in project development to ensure the rights of buyers, create favorable conditions for real estate ownership for overseas Vietnamese, attract more foreign investment, and enhance professionalism and transparency in the real estate brokerage community.

Ho Chi Minh City is home to many types of businesses developing business in the real estate sector.

In addition, experts also commented that the demand for real estate is always present and the main target group looking to buy real estate in the near future is young families, especially newlyweds.

Mr. Dinh Minh Tuan, Southern Regional Director of Batdongsan.com.vn said: “Currently, although apartments have cooled down and are not attracting a large number of customers like before, prices have not decreased. At the same time, apartments are still a type of property with good liquidity in the market.”

According to Mr. Tuan, a series of government policies are promoting the entire economy across the country, real estate is also a hot industry and always receives special attention from investors. If the policies are applied well, smoothly and the market continues to stabilize in the coming time, the real estate market in the South will return to the "race".

Source: https://www.nguoiduatin.vn/tphcm-bat-dong-san-tang-truong-tro-lai-mang-theo-nhieu-ky-vong-a671216.html