Properties along Thu Duc City’s Vo Nguyen Giap Street in the eastern area of HCMC in February 2024. Photo by VnExpress/Quynh Tran
The registered capital of new real estate businesses in HCMC rose 146% year-on-year to VND24 trillion (US$944.7 million) in the first four months of 2024, the Statistics Office said.
There are 395 new firms in the sector, 6.6% fewer than the number incorporated in this period last year.
This means the average company is investing more since the market has shown signs of recovery, the Statistics Office noted.
Real estate services have generated revenues of VND80.8 trillion this year, up 10% year-on-year, it said.
“The property market is recovering thanks to policies to resolve legal hurdles and low interest rates.”
Duong Thuy Dung, CEO of property consultancy CBRE Vietnam, said the recovery could speed up if amendments to the Land Law are implemented by the middle of this year, boosting confidence in the market.
Some property projects in HCMC have seen high demand this year such as a luxury apartment project on Mai Chi Tho Street launched at VND125 million per square meter in mid-March, CBRE said.
Looking ahead to this year, CBRE forecast apartment prices to rise by 3% and 8,000 new units to enter the market, and low-rise housing prices to increase by 4% due to limited supply.
Nguyen Trong Toan, investment manager at Savills Hanoi, said this year the real estate market is expected to attract more foreign investment due to the country’s economic recovery, low inflation and stable exchange rates.
Foreign investors are seeking opportunities in Vietnam, particularly in housing given the low supply and high demand, he added.