Ho Chi Minh City irons out real estate market issues

In the first 10 months of 2024, eight out of 30 real estate projects in the city had their legal issues fully resolved, allowing developers to proceed with necessary procedures to accelerate their progress. The remaining 22 projects are being reviewed and handled by relevant departments and branches under current regulations.

Ho Chi Minh City irons out real estate market issues, Photo Le Toan

According to a report submitted by Ho Chi Minh City People’s Committee to the Ministry of Construction in early November, the resolved projects include notable names such as the Song Viet Complex Project by Quoc Loc Phat Ltd., a social housing project by VTHouse JSC and Tam Giao JSC, a development by Suntory Pepsico Vietnam Beverage Co., Ltd., the Metro Star Apartment and Commercial Complex, and the Tan Thang Sports and Residential Complex by Gamuda Land.

Other projects include a more than 11,000sq.m land area in Hoc Mon district by Western Saigon JSC, the Song Da-Thang Long high-rise housing project by Hung Thinh Incons JSC, and an education project by Tri Tue Company.

Signed by Vice Chairman Bui Xuan Cuong, the report highlights that the city’s real estate market has shifted from negative growth in 2023 to positive growth in 2024. While the growth rate remains slow, these developments signal a gradual recovery.

“Some new projects have received approval for investment policies, and older projects have restarted thanks to the removal of obstacles,” the report said.

In the first 10 months of the year, Ho Chi Minh City approved investment policies for 12 commercial housing projects, including one social housing project. Two projects were granted construction licences, and more than 31,000 commercial apartments in other projects are currently under construction.

Additionally, over 1,600 apartments eligible for future development have been cleared to mobilise capital, and three social housing projects, comprising more than 2,100 apartments, were completed.

The report noted that the recovery has been supported by the implementation of revised laws on Land, Housing, and Real Estate Business, which came into effect in August, alongside government guidelines to address difficulties faced by investors and developers.

The Ho Chi Minh City Real Estate Association reported that over the last two years, 64 real estate projects from 57 investors in the city have faced persistent legal issues. These include both social housing and commercial projects that required procedural reviews.

To address these challenges, the city established a working group in 2023 tasked with resolving obstacles for real estate projects. This team, composed of officials from relevant authorities, has since reviewed hundreds of projects to expedite their progress.

Simultaneously, Ho Chi Minh City has been working to identify and address inconsistencies, overlaps, and conflicts in existing regulations. The aim is to eliminate common barriers, accelerate construction and investment, and refine policy mechanisms to clear bottlenecks in real estate development.

The report indicates that with these efforts, the city’s real estate market is steadily recovering. As legal and procedural issues continue to be addressed, the market is expected to gain momentum, paving the way for further growth and development.

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