Over 1,000 Real Estate Enterprises Return to the Market: Signs of Recovery in Ho Chi Minh City's Real Estate Sector

In the first nine months of 2024, Ho Chi Minh City's real estate market has shown optimistic signs of recovery, reflecting a gradual yet stable revival of the sector. The Ho Chi Minh City People's Committee recently released a report on the housing and real estate market for the third quarter of 2024, highlighting the strong return of real estate enterprises and a significant increase in transaction activity, contributing to the city's economic growth.

Specifically, since the beginning of 2024, Ho Chi Minh City has recorded 1,051 newly registered real estate enterprises, with a total registered capital of VND 40,137 billion. This figure demonstrates the strong confidence of the business community in the market's recovery, despite the previous difficulties due to economic recession and financial challenges. The increase in the number of new enterprises not only reflects investor confidence but also indicates the potential for sustainable recovery, serving as a driving force for the future development of the city's real estate market.

Revenue from real estate activities also recorded significant growth, reaching VND 199,156 billion, accounting for 60.3% of other service revenue and increasing by 6.7% compared to the same period last year. These figures reflect the gradual recovery of the real estate sector and show positive signals in addressing financial issues and advancing project development. Although the growth rate remains slower than expected, the Ho Chi Minh City People's Committee believes the market has shown positive signs of recovery and is gradually stabilizing, laying the foundation for sustainable long-term development.

In the third quarter of 2024, three housing projects in Ho Chi Minh City were approved for investment, including two commercial housing projects and one social housing project. At the same time, the People's Committee also confirmed that four real estate projects met the conditions for capital mobilization, with a total value exceeding VND 9,118 billion. These projects belong to the high-end segment, comprising 1,567 apartments and 44 low-rise houses, all of which were successfully transacted within the quarter. This reflects strong investor interest in the high-end real estate segment, despite the general challenges of the market.

However, for social housing and worker housing projects, the process of accessing the VND 120,000 billion preferential loan package still faces many difficulties, with no investors approved for loans so far. The main reasons include relatively stringent loan conditions, complex approval procedures, and a lack of timely support from functional agencies. This poses a major challenge that investors need to overcome in order to promote the development of social housing and meet the urgent needs of urban workers. Addressing these bottlenecks will play an important role in ensuring balance across market segments, promoting sustainable real estate development, and meeting diverse housing needs.

Ho Chi Minh City is also striving to accelerate the construction and approval of social housing projects, making it easier for low-income residents to access housing. Since the beginning of the year, the city has approved 12 commercial housing projects for investment and completed the construction of three social housing projects. Notably, more than 31,000 apartments are currently under construction, demonstrating the city's strong commitment to increasing housing supply, particularly for projects aimed at workers and low- to middle-income families.

Overall, with more than 1,000 real estate enterprises returning to the market and over 1,600 real estate transactions conducted in the past three months, Ho Chi Minh City's real estate market is gradually regaining momentum. This recovery is driven not only by the increase in transaction numbers but also by the participation of more new enterprises, creating momentum for the future development of the real estate industry. The positive signals from commercial and social housing projects indicate that the market is gradually stabilizing and moving towards more sustainable development.

The entry of new enterprises and the increase in project approvals not only bring momentum to the real estate sector but also promise a significant increase in housing supply in the future. Particularly, the high-end residential segment continues to attract considerable investor attention, indicating that part of the market remains robust with high demand. However, to ensure balanced and sustainable growth, it is necessary to further strengthen housing support measures for workers and low-income groups, especially in terms of access to financial support.

In the future, continued improvement of support policies, simplification of loan procedures, and acceleration of project approval processes will be crucial factors in promoting the stable and comprehensive development of Ho Chi Minh City's real estate market. The unwavering efforts from both the government and enterprises will play an essential role in helping Ho Chi Minh City's real estate market quickly regain strong growth momentum, better meet the housing needs of residents, and contribute to the sustainable socio-economic development of the city.