The real estate market in Ho Chi Minh City is going through a period of fluctuations with many difficulties, causing many businesses to struggle. According to the recent report on housing and real estate market information in the third quarter of 2023 sent to the Ministry of Construction, Ho Chi Minh City People’s Committee said that real estate business activities in the first 9 months of 2023 in the locality still face many difficulties. difficult but tried to recover.
Specifically, in the first 9 months of 2023, real estate grew -8.71% over the same period. Meanwhile, the first 6 months of 2023 will grow -11.58% and the first quarter of 2023 will have negative growth of -16.2%. Real estate business revenue -4.7% over the same period. Previously, the first 6 months of the year -8.3% and the first 4 months of the year decreased to -14.6%.
Regarding housing supply in Ho Chi Minh City, 15 commercial housing projects with 15,020 future housing products were launched on the market in the first 9 months of 2023, equivalent to more than 1.5 million m2. Floor area serving people’s accommodation needs increased by 17.6% over the same period. Of which, the high-end segment has 9,969 units and the mid-end segment has 5,051 units. Notably, there is no housing in the affordable segment.
Ho Chi Minh City’s real estate market faces many difficulties. Photo: Gia Linh
Leaders of Ho Chi Minh City People’s Committee assess that by the third quarter of 2023, the local real estate market has not yet changed positively. However, compared to the early period of 2023 and 2022, real estate has shown signs of recovery, contributing to boosting construction industry activities.
In particular, the main reason for the recovery signal comes from the fact that in recent times, Ho Chi Minh City has made moves to remove legal obstacles for each project, and has inter-sectoral coordination solutions to resolve these problems. unique difficulties in each place.
In addition, the loosening of monetary policy and banks’ lending interest rate reduction policies that have helped free up capital in recent times are also important supports to help the market recover.
Sharing with the press in a recent discussion, a representative of the Ho Chi Minh City Department of Construction said that recently, the Working Group of the Ho Chi Minh City People’s Committee has had many meetings to remove difficulties in a number of projects. judgment. Of these, the city focused on removing problems in 148 projects with 189 recommendations, and to date nearly 30% have been resolved.
Legal issues are still the key point to clear the market. Photo: Gia Linh
However, the removal of problems is still in a sequential manner, where there is a problem, there is advice there, but it is not yet comprehensive and continuous. Accordingly, real estate projects go through many periods, the laws are intertwined, the new legal regulations themselves are not unified and synchronized with the transitional regulations. Not to mention, the advice and proposals of ministries and branches during the transition are also different. In addition, there are still some problems related to determining land prices, land use fees, additional financial obligations…
Mr. Le Hoang Chau – Chairman of Ho Chi Minh City Real Estate Association (HoREA) assessed that real estate has passed the bottom zone in the first quarter of 2023. However, the biggest bottleneck businesses are still facing lies in legal issues. Obstacles related to land, investment procedures, planning adjustments and site clearance are intertwined and overlapping legal documents, still causing difficulties for businesses.
The expert said that even credit capital, banks are almost “loosened”, ready to lend to businesses. However, projects approved for loans must complete legal and standard procedures to ensure safety and avoid risks and debts to the bank.
