The HCM City People’s Committee has submitted a report to the Ministry of Construction (MOC) about the real estate market in the third quarter 2024.

The market witnessed a growth rate of 2.94 percent by the end of the third quarter compared with the end of the second quarter. 

Total revenue from real estate business in the first nine months of the year reached VND199.156 trillion, which accounted for 60.3 percent of revenue from other services, an increase of 6.7 percent over the same period last year.

As many as 1,051 real estate firms had been licensed in the last three quarters with total registered capital of VND40.137 trillion.

Regarding housing projects, three projects, including two commercial housing and one social housing, got approval for investment in the third quarter, while one project got a license for construction.

In the third quarter, HCM City certified four projects as meeting requirements to mobilize capital for housing products to take shape in the future (VND9,118.893 billion).

All the 1,567 apartments and 44 low-rise housing belonging to the four projects are high-end products.

Meanwhile, there was no considerable progress in accessing the VND120 trillion preferential credit package for the development of social housing and housing for factory workers in HCM City. No investor has successfully obtained loans under the program.

The HCM City People’s Committee said the market has begun recovering and though growth is still slow, positive signs have become more visible.

Twelve commercial housing projects in the city have got the nod for investment this year, while three social housing projects have been completed and 31,000 apartments are under construction.

Real estate transactions

The revenue from real estate transfer in the first 10 months increased by VND1.662 trillion, according to the HCM City Department of Natural Resources and the Environment.

Regarding state budget collections from land, the city has collected VND5.693 trillion from land use, an increase of VND1.835 trillion over the same period last year.

The revenue from land and surface water leasing reached VND4.104 trillion, up VND1.642 trillion.

Meanwhile, the revenue from real estate transfer was VND5.956 trillion, up VND1.662 trillion.

Also according to the department, 5,186 certificates on land use rights, house ownership rights and the ownership of other assets attached to land have been granted to organizations and individuals this year.

The agency has confirmed a change of property status on 4,682 certificates for organizations and 293,459 certificates for individuals.

As of October 2024, the department had released 348 decisions to impose administrative fines on violations in the fields of land, environmental protection and water resources, totaling VND18.5 billion.

Legal problems 

In an effort to solve all legal problems, believed to be the main reason behind tardiness in project implementation and supply shortage in the real estate market, the HCM City People’s Committee set up a taskforce to deal with the problems.

Since its establishment, the taskforce has helped solve legal problems for 30 real estate projects, of which eight have had all problems removed, and 22 have been dealt with.

The taskforce now has to deal with 64 real estate projects with legal problems forwarded by the Prime Minister’s working group. The taskforce operates under regulations specifically set for it by the HCM City People’s Committee released October 3, 2023.

In March 2024, the taskforce held a meeting. Since its establishment, 10 meetings have been convened and 15 conclusions have been released about the fate of 30 projects.

The eight projects that had problems resolved include: Song Viet Complex developed by Quoc Loc Phat JSC; social housing by VTHouse JSC and Tam Giao JSC; project registered by Suntory Pepsico Vietnam Beverage Co Ltd; Metro Star Apartment and Commercial Complex in Thu Duc City by Metro Star Investment JSC; Adjustment of project implementation pace of Celadon City developed by Gamuda Land JSC; 1.1ha project in Hoc Mon town, Hoc Mon district by Western Saigon JSC; Song Da –Thang Long high-rise residential area in District 7 by Hung Thinh Incons JSC; and Binh Thanh District Education Complex of Tri Tue Company.

Anh Phuong