Removing Legal Obstacles to Promote Real Estate Projects in Ho Chi Minh City: Progress and Prospects

Over the past year and a half, Ho Chi Minh City has made significant progress in removing legal obstacles for real estate projects, creating favorable conditions for market recovery and sustainable development. According to the report from the Ho Chi Minh City People's Committee, since May 2023, the city has reviewed and resolved 30 projects facing legal difficulties, of which 8 projects have been completely resolved, while the remaining 22 projects are still in the process of being addressed. These initiatives not only help alleviate current obstacles but also demonstrate the city's strong commitment to the comprehensive recovery and development of the real estate market.

The 8 real estate projects that have successfully overcome legal barriers include: the "Song Viet" complex by Quoc Loc Phat Joint Stock Company; the social housing project by VTHouse Joint Stock Company and Tan Giao Joint Stock Company; the project of Suntory Pepsico Vietnam Beverage Co., Ltd.; the Metro Star residential and commercial complex by Metro Star Investment Joint Stock Company; the "Tan Thang Sports and Residential Complex" (Celadon City) by Gumaland Joint Stock Company; the land project in Hoc Mon District by Western Saigon Joint Stock Company; the high-rise residential project (Song Da-Thang Long) by Hung Thinh Incons Joint Stock Company; and the educational project in Binh Thanh District by Tri Tue Company. The successful removal of legal barriers for these projects not only helps increase real estate supply but also creates a diversified range of real estate products to meet the various needs of residents and businesses.

For the remaining 22 projects, the Ho Chi Minh City People's Committee has assigned the Director of the Department of Planning and Investment to continue coordinating with relevant agencies to resolve the legal barriers. This demonstrates the city's commitment and relentless efforts to expedite the handling of projects for the highest effectiveness. According to the Ho Chi Minh City Real Estate Association, since 2022, a total of 64 real estate projects belonging to 57 enterprises have faced prolonged legal obstacles in the city. These projects are divided into three main categories: social housing projects, commercial housing projects not requiring legal review, and commercial housing projects subject to inspection, review, and audit. This classification helps make the handling process more explicit and efficient, thereby accelerating the removal of obstacles and minimizing the impact of legal issues.

In addition to efforts in removing legal barriers, in the first nine months of 2024, the city approved investment policies for 12 commercial housing projects, including one social housing project, and granted construction permits for two projects with a total scale of 31,000 commercial apartments. These efforts have significantly laid the foundation for the real estate market to shift from negative growth in 2023 to positive growth in early 2024. These approvals and permits not only facilitate the continuation of real estate projects but also encourage investors to return to the market, thereby providing new momentum for the recovery and development of the local economy.

The Ho Chi Minh City People's Committee forecasts that the real estate market will continue its recovery momentum, albeit at a relatively slow pace. Prices are expected to rise slightly in some segments due to the impact of the newly issued land price list, but overall there will be no major fluctuations. New supply is expected to gradually increase, contributing to transaction volume growth, particularly in the apartment segment, which is considered to have the greatest potential due to high demand and limited supply. This means that homebuyers will have more options, but price increases will remain controlled to ensure market stability.

Specifically, the apartment market is currently considered the most attractive segment in the market. Demand for apartments not only comes from the growing middle class but also from urban population growth, along with changes in lifestyle and demand for modern amenities. As new apartment supply is growing more slowly than demand, this segment is expected to continue to be a bright spot in the market, attracting the attention of both owner-occupiers and investors.

Additionally, Ho Chi Minh City's budget revenue for the first nine months of 2024 is estimated at 371,307 billion VND, equivalent to 76.9% of the forecast and up 14.3% compared to the same period last year. Although land-related revenue remains lower than Hanoi (a difference of about 27,000 billion VND), Ho Chi Minh City still met the budget revenue target and is expected to exceed the planned goal by 2%. This indicates positive signals, strengthening confidence in the sustainable recovery of the city's real estate market. The completion and exceeding of budget revenue targets is a testament to the vitality of Ho Chi Minh City's economy, despite many challenges, significant progress has been made in adjusting management strategies and developing key revenue streams.

Furthermore, efforts to attract investment and enhance public-private partnerships are key factors in maintaining the recovery momentum of the real estate market. The Ho Chi Minh City government is striving to improve the investment environment, particularly in reducing administrative barriers and increasing transparency in the project approval process. These measures are crucial not only to ensure the recovery of existing projects but also to attract more new projects, thereby creating a sustainable development cycle for the city's real estate market.

Overall, the recent recovery of the Ho Chi Minh City real estate market can be seen as the result of coordinated efforts between the government, investors, and related organizations. Although the recovery process still faces many challenges and requires time, the progress achieved so far shows a promising outlook, making an important contribution to the socio-economic development of Ho Chi Minh City and the southern region.