The socio-economic report for March and the first quarter of 2024 of the Ho Chi Minh City Statistics Office said that the total retail sales of goods and consumer service revenue is estimated at VND 270,264 billion, up 12.2% over the same period.
Ho Chi Minh City's real estate business revenue reached VND61,000 billion in the first three months of the year.
Of which, the real estate business sector reached over 61,000 billion VND in the first quarter, an increase of 15.7% over the same period last year.
With this scale, real estate business accounts for nearly 23% of the total retail sales of goods and service revenue of the City, second only to the retail sales of goods sector.
According to the assessment of the City Statistics Office, the real estate market has flourished as the Government and businesses have implemented many policies related to law and interest rates. Although revenue has improved, the supply of new projects is still a big challenge for the City in the coming time.
A previous report from the City Department of Construction said that market sentiment has improved somewhat, but the supply of each type of housing will be determined by market demand and the business strategy of each enterprise.
In the first two months of the year, this agency received two applications for notification of eligibility for capital mobilization, however, upon review, both projects were not eligible. Thus, the new project wishing to open for sale exists but does not meet the requirements according to regulations.
“In reality, there are still housing products in the project that are being brought to the market by investors. These are projects that were previously announced by the Department of Construction to be eligible for sale according to regulations,” the Department of Construction assessed.
In the long term, the project's legal factors will greatly affect the supply. In the first quarter of 2024, there will be 1 housing project approved for investment (Rita Vo Trade Center, Service Center, Luxury Apartment Project, Nguyen Van Cu Street, District 5).
Although there are no official figures from the Department of Natural Resources and Environment, but through monitoring, no new housing projects have been allocated land. In addition, many projects that have been approved for investment policy and investment approval are still stuck with procedures regarding financial obligations, land, planning, and some projects even have to review the project's legal status, land origin, etc.
Therefore, when the Department of Construction considers the eligibility for capital mobilization, housing projects in these cases will not meet the requirements.
In the first quarter of 2024, there will be 1 housing project approved for investment policy (Rita Vo Trade Center, Service Center, Luxury Apartment Project, Nguyen Van Cu Street, District 5).
In addition, in the first quarter of 2024, the City had 439 cases of foreign investors contributing capital of 302.6 million USD, an increase of 9.1% in capital over the same period.
Of which, professional, scientific and technological activities reached 146.5 million USD, accounting for 48.4% of total contributed capital; real estate business activities reached 45.4 million USD, accounting for 15.0%. Singapore and South Korea are the two countries with the highest proportion of contributed capital, accounting for 58.4% and 8.6% respectively.
Previously, the Ho Chi Minh City Real Estate Association (HoREA) commented that in the first two months of 2024, the real estate market of the whole country and Ho Chi Minh City continued to recover and grow more firmly, being the leading sector in attracting the most foreign investment capital FDI and in the stock market, real estate stocks along with financial and banking stocks are leading the market.
With this recovery momentum, it can be said that the real estate market will return to normal operations and enter a safe, healthy, and sustainable development cycle from the second half of 2024, creating momentum for stronger development from the beginning of 2025 onwards.
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