The Vietnamese real estate sector has pushed through its toughest times and is steadily increasing momentum, according to a report sent by the Ho Chi Minh City Real Estate Association (HoREA) to the Ministry of Construction on Tuesday.

Apartment buildings in Ho Chi Minh City. Photo: Ngoc Hien / Tuoi Tre

The period from the second half of 2022 to the end of the first quarter of last year was particularly difficult for the real estate market, especially that in Ho Chi Minh City, HoREA stated.

In the first quarter of 2023, the property sector in the southern metropolis recorded minus 16.2 percent growth, but the decline began to slow the next quarter when the sector logged a minus 11.5 percent expansion.

By the end of 2023, the decline of the Ho Chi Minh City real estate industry had seemed to be slowing down when it posted just minus 6.38 percent growth for the year.

A recovery began to manifest in the first two months of 2024 when the city began attracting foreign investment in real estate, boosting the stock prices of industry companies.

HoREA forecast that real estate would return to normal and enter a safe, healthy, and sustainable development phase from the second half of 2024, creating momentum for its further development from early 2025 onward.

The Ho Chi Minh City statistics agency’s report on the city’s socio-economic performance in the first two months of 2024 showed that the real estate sector began showing signs of recovery following a slew of government-issued policies to remove obstacles and spur sectoral development.

Realty enterprises have also joined hands to offer preferential programs to customers.

As a result, property revenue reached VND42.3 trillion (US$1.7 billion) in the two-month period, up 20.1 percent year on year.

Minister of Construction Nguyen Thanh Nghi said that the realty market started indicating positive signals from the third quarter of last year, with supplies noticeably increasing compared to prior months.

Hoang Hai, head of the Housing and Real Estate Market Management Agency under the Ministry of Construction, anticipates significant foreign investment and high industrial property rental revenues in the real estate industry this year, along with the completion of 130,000 social houses as targeted by the government.

Thanh Ha – Ngoc Hien (Source: tuoitrenews.vn)