return icon

HCM City real estate market faces downtrend

Real estate companies in HCM City are experiencing difficulties as the market is seeing a sharp downtrend.



Real estate companies in HCM City are experiencing difficulties as the market is seeing a sharp downtrend. Photo for illustration



Ho Chi Minh City Real Estate Association (HOREA) Chairman Le Hoang Chau said that local firms were facing the most difficult market since the recovery in 2014.

"In the first quarter of this year, the number of projects approved by the Department of Construction fell by 63 per cent compared to the same period last year," he said citing a report. "Construction firms also saw a fall of between 30-50 per cent in the number of contracts due to a lack of projects."

The report also shows that in the first half of this year, there were only three new commercial housing projects with a total of 924 apartments proposed to the city people's committee for approval by the construction department, compared with 16 projects during the same period last year. The number of projects proposed for investment approval also fell by 82.2 per cent compared to last year, to just 10 projects.

The city now has just 24 housing projects with 7,313 apartments that meet requirements for sale, which is a fall of 29.4 per cent and 24.2 per cent, respectively, compared to the same period last year. Just over 4,100 apartments have been offered for sale since the beginning of this year, which is a record low since the market recovery in 2014.

"The difficulties of the real estate market have led to the sharp fall in revenue generated from the sale of land use rights," Chau said.

Revenues for the first half of this year was reported at just below 50 per cent of the set target. While last year, revenues from land use rights amounted to VND22.6 trillion (USD983 million), accounting for 9.32 per cent of the city's total budget revenues of the city.

Due to difficulties, local real estate firms owed taxes of over VND10 trillion (USD435 million) in the first two months of this year alone, the official said. Tax debts relating to land amounted to VND 1.37 trillion or 14 per cent alone.

Explaining about the difficulties, some local real estate firms told the Tien Phong Newspaper on November 20 that cumbersome administrative procedures were the main obstacle which hindered the development of the market.

According to local firms, one of the examples is the procedures for approving the 1/500 plan of commercial housing projects. The Department of Planning and Architecture is now refusing to accept dossiers sent by investors, saying that they can only deal with documents sent by project owners. As such some 130 projects in the area have failed to receive certification from the department despite having their investment plan approved by the city people's committee.

Speaking at a recent conference held on the issue, Chairman and President of Vietnam Chamber of Commerce and Industry, Vu Tien Loc said that they have looked through some laws and regulations on real estate and found 20 clashes in terms and conditions.

"Many decrees, circulars, and instructions are contradictory or overlapping, and so cannot be put into use" he stressed. "They are not only causing difficulties for enterprises but creating good conditions for corruption.

Vice chairman of HCM City People's Committee, Vo Van Hoan said that obstacles relating to policies had resulted in a fall in the city budget revenues from land use over the past three years.

Hoan urged relevant department and agencies to quickly work together to find solutions to these problems and create favourable investment environment for enterprises.

Meanwhile, a meeting between leaders of the city people's committee and local firms which was scheduled on November 20 was suddenly cancelled by the committee, making firms more anxious. Dtinews


Number of international visitors to Vietnam sets 'record' after pandemic

Vietnam welcomed 2.95 million foreign visitors in January-November 2022, 21.1 times up year on year, but still down 81.9% compared with pre-pandemic levels in 2019.

Su-30MK2, Mi helicopters rehearse in Hanoi

On December 2, Su-30MK2 fighters performed in a rehearsal to prepare for the upcoming Vietnam International Defense Exhibition 2022.

Vietnam sends condolences over passing of former Chinese leader Jiang Zemin

Vietnamese leaders on December 2 cabled messages of condolences to Chinese leaders over the death of former General Secretary of the Communist Party of China (CPC) Central Committee and former President of China Jiang Zemin.

Ministry proposes canceling funding plans over disbursement delays

Disbursements of public funds sourced from foreign loans in the year through November had moved at a snail’s pace, reaching only slightly more than 25% of the full-year plan.

Hanoi to pilot bike rental service in six urban districts

Hanoi has approved a year-long pilot bike rental service programme in Hoan Kiem, Tay Ho, Dong Da, Ba Dinh, Hai Ba Trung, and Thanh Xuan districts.

Weightlifters hope for Olympic qualification from world championship

It was scheduled to be held in Chongqing, China, but this changed in March due to COVID-19 measures in China. The new location was announced in April.

Striker Nguyen Van Quyet named best player of 2022 V.League 1

Striker Nguyen Van Quyet received a statue for the most valuable player of the 2022 V.League 1 season at a V.League Awards ceremony organised on December 1 in Hanoi.

Meteor shower to light up Vietnamese skies on December 13

Local sky gazers will have a rare opportunity to witness the peak of the Geminids meteor shower, with the astronomical event set to occur between midnight on December 13 and the morning of December 14.

Da Nang wins Best Vietnam Smart City Award for third time

The central city of Da Nang has been granted the Best Vietnam Smart City Award 2022, the third time so far.

Newly-established, re-operating enterprises up over 33% in 11 months

Vietnam saw nearly 194,700 newly established and re-operating enterprises in the first 11 months of 2022, up 33.2% over the same period in 2021, a 1.3 times higher than the average rate in January – November period from 2017 - 2021.

Politburo members discuss review of resolution on HCM City development

Party General Secretary Nguyen Phu Trong on December 2 chaired a Politburo meeting on a project to review the 10-year implementation of a resolution on the orientations and tasks for the development of HCMC until 2020 and 2030, with a vision to 2050.

Exporters face tax unless they cut greenhouse gas emissions

Exports to the EU market will become more expensive unless enterprises implement greenhouse gas emission cuts. This will affect the competitiveness of many Vietnamese export companies.

Some of the best fishing lakes in and around Hanoi

Here are some of the most popular fishing lakes near Hanoi. On weekends, the number of people flocking to commercial centres, pedestrian streets or entertainment areas in the inner city of Hanoi has increased.

Vietnam demands Taiwan cancel live-fire exercises on Ba Binh Island

Vietnam resolutely opposes and demands Taiwan (China) to cancel its live-fire exercises in the waters around Ba Binh island that belongs to Vietnam's Truong Sa (Spratly), Vietnamese Foreign Ministry spokeswoman Le Thi Thu Hang stated on December 2.

Make-in-Vietnam cameras have high security, satisfy standards

Make in Vietnam camera manufacturers are enhancing security capability and satisfying requirements on information security set by the Ministry of Information and Communications (MIC) for devices such as cameras and Internet of Things (IoT).