Friday, July 19, 2024 10:23:43 AM - Markets open
VN-INDEX 1,275.65 +1.21/+0.09%
HNX-INDEX 242.11 -0.38/-0.16%
UPCOM-INDEX 97.42 -0.19/-0.19%
HCM City real estate revenue up 6% in H1
vietnamnews - 7/5/2024 11:13:00 AM
 (0 ratings. You must sign in to rate.)
Real estate revenue in HCM City reached VNĐ124 trillion (US$4.9 billion) in the first half of the year, up 6.1 per cent year-on-year, according to the HCM City Statistics Office.
New developments in the Thủ Thiêm urban area in HCM City. — VNS Photo Bồ Xuân Hiệp
Real estate revenue in HCM City reached VNĐ124 trillion (US$4.9 billion) in the first half of the year, up 6.1 per cent year-on-year, according to the HCM City Statistics Office.
The real estate market has shown signs of recovery this year, with 3 per cent growth in the second quarter and 2.5 per cent in the first quarter, after a 6.4 per cent decline last year from 2022.
The market hit its lowest point in the first quarter of 2023 with a negative growth rate of 16.2 per cent.
Lê Hoàng Châu, chairman of the HCM City Real Estate Association (HoREA), said the market continues to face challenges such as an abundance of high-end housing and a shortage of affordable housing, particularly social housing.
Industry analysts remain optimistic about the market’s outlook, expecting benefits from increased foreign direct investment in the real estate sector and revisions to the Land Law.
Foreign direct investment in the property sector was up 70 per cent year-on-year to reach over $1.98 billion as of the end of May.
The influx of foreign capital, accounting for 18 per cent of total FDI, makes the property sector the second most attractive sector after manufacturing.
HCM City’s strategic location and robust infrastructure make it an attractive investment destination for foreigners, particularly its real estate sector, said industry analysts.
Competitive prices in the property market, especially in HCM City, have lured the interest of many foreign investors, they noted.
A report by Cushman & Wakefield has noted a positive outlook for foreign investment in the Vietnamese property sector from 2024 to 2026, driven by low interest rates and various supportive Government policies.
Major investors from countries such as Singapore, Hong Kong, mainland China, Japan, and South Korea are increasingly interested in the high-end and luxury segments in Việt Nam, with Singapore leading the way with nearly $3.25 billion in investments in the first five months, according to the report.
Industry analysts also expect the market to benefit from the revisions to the Land Law to take effect on August 1.
They are expected to increase the supply of social housing by encouraging enterprises to invest in the segment.
They will particularly benefit two main groups: overseas Vietnamese and individuals who are resettled and have received compensation.
It allows overseas Vietnamese to buy houses in Việt Nam and get ownership, which is expected to attract more investment from them.
It also stipulates that resettlement areas must meet conditions related to technical and social infrastructure.
A building near Bến Thành Market in downtown HCM City whose construction stopped at the end of last year. The real estate market is expected to recover in the second half of the year. — VNS Photo Bồ Xuân Hiệp
But the property sector has admittedly been facing challenges such as debt repayment pressures, fraud and other financial scandals.
Numerous bond issuers, mostly real estate developers, have missed interest and principle payment deadlines since the end of 2022 following the arrest of Trương Mỹ Lan, chairwoman of Vạn Thịnh Phát, for financial fraud.
This has shaken market confidence.
Despite multiple challenges facing the city, its Gross Regional Domestic Product (GRDP) grew by 6.46 per cent in the first half of the year.
The country’s largest city aims to achieve a yearly growth rate of 7.5-8 per cent. — VNS
Read original article here
Newer News
18/07 Land Law to create investment waves in various sectors: Experts
16/07 New legal framework to create advantages for foreign real estate investors
12/07 Villas in Hanoi see price increases, although the real estate market is still slow
08/07 Early enforcement of real estate laws - a catalyst for the market recovery
05/07 Real estate market to ‘prosper’ from 2025: Batdongsan
Older News
02/07 Two Vinhomes projects granted permission to sell homes to foreigners
02/07 Hoà Vang district offers ready-cleared land to investors
29/06 Property transactions of individuals might be limited
15/06 Property market sees many driving forces for growth
15/06 Hà Nội market accepts new level of apartment price
25/05 Hà Nội sees recovery in low-rise property prices but apartment prices fall
08/05 2024 Land Law to draw real estate investment, increase social housing supply
08/05 Real estate market in the South picking up
19/04 Ministry requests Hà Nội to inspect rising prices of apartments
17/04 Real estate market has positive performances in Q1: VARS
Newsletter Signup
Top Stories
VCCI recommends mineral mining rights be granted through auction and bidding
Central bank works to raise interbank rates and ease forex market
Inflation a concern following salary increases
National Council for Sustainable Development established
Việt Nam, Cambodia look forward to $20 billion trade
Market Update
Last updated at 10:14:59 AM
VN-INDEX 1,275.65 +1.21/+0.09%
Real-time chart
Top 5 Actives
Top 5 Gainers
Top 5 Losers
My Favorite Quotes
Your most recently viewed tickers will automatically show up here if you type a ticker in the Get Quotes box on the top of the page.
Company Research
Type in the symbol above for thorough background information, key statistics and financial information.
Stock Sectors
We continuously improve our services, here are the latest updates...
Allow you to monitor a customised group of securities. You can set up multiple Portfolios to help you better manage your investments.
Trigger Alerts
Get up-to-date alerts delivered directly to your email address.
Stock Screener
Allow you to filter the market and find exactly what sort of company you are looking for.
Live Terminal
Get instant access to FREE REAL-TIME streaming quotes for hundreds of stocks from HOSE, HNX and UPCOM exchanges.