Luxury apartment buildings in HCM City. (Photo: VNA)
Ho Chi Minh City’s real estate market is showing early signs of recovery, with new supply prospects boosted by streamlined legal procedures and lower bank lending rates, according to the municipal Department of Construction.
The city’s authorities have made coordinated efforts to remove obstacles and revive delayed projects.
A report by the department showed that 14 housing projects were approved in the second quarter of the year, including nine commercial, one social and three subject to land use right auctions.
They have a total investment of more than VND 15.3 trillion (USD 584.3 million).
Three others were granted construction permits and two were allowed to mobilise capital with a total of 1,389 luxury apartments.
The market has gradually recovered after bottoming in 2023, with the bounce back being noticeable since the beginning of 2024, the report showed.
The growth rate might be low but there are positive signs and bright spots.
This year, prices are forecast to increase slightly in some segments without any major movements.
The apartment segment remains the most promising due to high demand and slow rise in supply.
New land, housing and credit policies that took effect last August are expected to continue to have a positive impact on the market in the coming time.
Long-term market prospects are underpinned by legal reforms, transport infrastructure development and the growing middle-class, according to the report.
In the second quarter of this year, the city added 1,600 new apartments, a 38 per cent increase year-on-year, according to Savills Vietnam.
But primary supply was a mere 5,400 units with an absorption rate of 45 per cent.
In the first half, supply was 6,800 units and 3,800 were sold.
Around 8,000 will be launched in the second half, most of them in the mid-priced segment.
