HoREA evaluates that the real estate market has overcome the most difficult period and is on the road to recovery. Photo: Int
Commenting with MarketTimes, Mr. Le Hoang Chau – Chairman of the Ho Chi Minh City Real Estate Association (HoREA) said that in the first two months of 2024, the real estate market nationwide and Ho Chi Minh City continued the trend of recovery and solid growth, leading the field in attracting the most foreign direct investment FDI and in the stock market, real estate stocks, along with finance, and banking stocks are leading the market.
With the current recovery momentum, the Chairman of HoREA assesses that the real estate market will return to normal operation and step into a safe, healthy, and sustainable development cycle from the second half of 2024, creating momentum for stronger development from early 2025 onwards.
Previously, data from HoREA showed that the real estate market had gone through the year 2023 with a gradual upward trend.
Source: HoREA
Specifically, from the second half of 2022 to the end of the first quarter of 2023 was the most difficult period of the real estate market nationwide and in Ho Chi Minh City.
The first quarter of 2023 was the “bottom” of the real estate market in Ho Chi Minh City with a growth rate of -16.2%.
In the second quarter of 2023, the real estate market in Ho Chi Minh City gradually overcame the most difficult period and began to enter a recovery and growth phase, although the growth rate was still negative, there were signs of decreasing with a negative growth rate of -11.5%.
In the third quarter of 2023, the real estate market in Ho Chi Minh City continued the trend of recovery and growth, with a slower pace but showing a more solid recovery, although there was still negative growth, it continues to decrease with a negative growth rate of -8.7%.
By the end of 2023, it can be confirmed that the real estate market in Ho Chi Minh City has overcome the most difficult period, although there is still negative growth, it has decreased significantly with a negative growth rate for the whole year 2023 only at -6.38%.
New motivation to supplement the supply for the real estate market
According to Mr. Le Hoang Chau, currently, real estate businesses are very welcome the meeting chaired by Deputy Prime Minister Tran Hong Ha regarding the report of the Ministry of Natural Resources and Environment “construction, submission to the National Assembly’s resolution on the pilot implementation of commercial housing through agreements on receiving land use rights for other types of land” to implement the directions of the National Assembly Standing Committee at Report 729/BC-UBTVQH15 dated January 17, 2024, submitted to the 5th extraordinary session of the National Assembly regarding “Receiving, adjusting and explaining the draft Land Law (amended)” and implementing the directions of the Prime Minister assigning the Ministry of Natural Resources and Environment to urgently build the “Pilot Program for Implementation of Commercial Housing Project through Agreement on Receiving Land Use Rights or Having Rights to Use Land for Other Purposes” submitted to the Government in early March 2024.
Recently, the Government Office issued Announcement No. 73/TB-VPCP dated February 29, 2024 on the “Conclusion of Deputy Prime Minister Tran Hong Ha on the implementation of the National Assembly’s resolution on the pilot implementation of commercial housing project through agreements on receiving land use rights or having rights to use land for other purposes and the pilot separation of compensation, support, resettlement, and land clearance into an independent project”.
According to Mr. Le Hoang Chau, the content of the National Assembly’s Draft Resolution under Section 1 of the above Notification, if approved by the National Assembly Standing Committee and approved by the National Assembly, will allow businesses to agree on receiving the right to use suitable types of land in accordance with the planning or having other types of land use rights that are not approved for investment policy at the same time as approving investors to implement commercial housing projects, will remove obstacles and difficulties for the real estate market to develop safely, healthily, and sustainably.
