In 2023, the real estate industry in HCMC faced considerable challenges, being the only sector with a negative growth rate of -6.83 percent. The HOREA consolidated and submitted 189 recommendations from 148 real estate projects to the People's Committee of HCMC. Up to now, three projects have been successfully addressed following the directives of the Task Force for resolving challenges in investment projects in HCMC.
Simultaneously, 12 projects are currently undergoing reviews by departments, in line with the directives from the People's Committee of HCMC. Additionally, 41 projects failed to meet the criteria for land-use rights necessary to secure approval for their investment proposals in commercial housing projects. The HCMC Department of Planning and Investment has worked with and informed investors to explore the possibility of altering their objectives from investing in commercial housing construction to investing in social housing or participating in a bidding process to select an investor for the commercial housing project. Dr. Tran Du Lich, Chairman of the Advisory Council for the Implementation of Resolution 98, said that preventing a recurrence of the free-fall scenario, like in the first quarter of 2023, involves considering several factors.
Apart from infusing approximately VND6 trillion into the economy through the disbursement of public investment capital in January, the city should proactively engage right from the beginning of the year to generate momentum. This entails focusing on addressing issues to promptly initiate several real estate projects. According to Mr. Nguyen Ngoc Hoa, Chairman of the HCMC Union of Business Association, the city should synchronously coordinate various policies. For example, there could be a synchronous interest rate support policy for both homebuyers and homebuilders. Furthermore, efforts should be directed towards reinvigorating the middle-income housing segment, given the substantial demand for social housing and affordably priced commercial housing (approximately VND1.5-2 billion per unit).
In 2024, the People's Committee of HCMC aims to actively implement the central government's mechanisms and policies to support business recovery and development, including measures to foster secure, healthy, efficient, sustainable, and integrated markets, particularly in the real estate and social housing sectors. The city will also conduct a thorough review and resolution of obstacles hindering real estate projects, providing support to restore cash flow for businesses. With these initiatives, there is optimism for a more positive growth trajectory in the real estate sector in 2024, as Mr. Nguyen Van Nen, Secretary of the HCMC Party Committee, during the conference to evaluate the socioeconomic development tasks of 2023 and deploy tasks for 2024, highlighted that the market is warming up, based on assessments of real estate traders.
The real estate market is intricate and sensitive, and its true economic value becomes apparent only during a crisis. That is the spread, driving growth and contribution to the Gross Regional Domestic Product (GRDP). Consequently, the city must take responsibility for implementing policies and addressing challenges within this market.
