Business Today: Real Estate Business Revenue Increases by Nearly 16% in Q1 2024
The real estate market in Vietnam is heating up, with the revenue from the real estate business increasing by almost 16% in the first quarter of 2024, according to a report from the Statistics Office of Ho Chi Minh City.
Positive Growth in Retail Sales
The report reveals that the total retail sales of goods and services in Ho Chi Minh City reached 270.264 trillion Vietnamese dong, a 12.2% increase compared to the same period last year. Notably, the real estate sector contributed over 61,000 trillion Vietnamese dong, a 15.7% increase from the previous year.
This figure represents approximately 23% of the total retail sales of goods and services in the city, ranking second after the retail sector.
Promising Signs in the Real Estate Market
The Statistics Office of Ho Chi Minh City attributed the positive growth in the real estate market to the implementation of various related policies by the government and businesses. These policies include legal reforms, interest rate adjustments, and increased liquidity, all of which have contributed to the progress and development of numerous real estate projects.
Additionally, the city witnessed the establishment of 268 new real estate businesses, accounting for nearly one-third of the total number of new market entrants nationwide during the first three months of the year.
Challenges Ahead
Despite the encouraging business revenue, the city faces challenges in terms of new project supply. The Department of Construction of Ho Chi Minh City reported that only one housing project received investment approval during the first quarter of 2024, with no new projects launched at the beginning of the year.
The construction and renovation activities for residential buildings also experienced a slight decline in the first two months of the year. The city granted 2,696 construction and renovation permits, covering a total floor area of 509,100 square meters. This represents a 1.4% decrease in permits and a 1.8% decrease in floor area compared to the same period last year, according to the Statistics Office of Ho Chi Minh City.
Government Measures to Address Legal Issues
To address legal challenges, the Vietnamese government has established specialized teams and centers to tackle legal matters for each specific project. They have also granted authority to Ho Chi Minh City to handle compensation and financial obligations independently.
According to the Ho Chi Minh City Real Estate Association (HoREA), as of early this year, about 30% of the more than 148 projects facing legal obstacles in the city have been resolved, thanks to the efforts of competent authorities at the central and city levels.
HoREA predicts that the real estate market in Ho Chi Minh City will enter a safe and healthy development cycle, gaining momentum from the second half of 2024 and experiencing robust growth from early 2025 onwards.
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