HCMC real estate brokerages show signs of recovery

By Anh Ky   March 3, 2024 | 05:46 pm PT
HCMC real estate brokerages show signs of recovery
Properties along the Hanoi Highway in Thu Duc City, HCMC, in February, 2024. Photo by VnExpress/Quynh Tran
Real estate services are showing signs of recovery in HCMC, generating VND42.3 trillion (US$1.72 billion) in revenues in the first two months of the year.

This represented a 20.1% increases year-on-year, according to the HCMC Statistics Office, albeit from a low base after slumping by 13% in the same period last year.

Revenues include brokerage for sales and lease of properties and income from other activities like price appraisal, legal services and financial services related to real estate trading.

The statistics agency attributed the growth to the government's recent policies to remove legal hurdles and support the property market and developers offering promotions to spur housing demand.

Last year the government set up committees to look into and simplify legal issues related to real estate and gave HCMC the authority to decide on compensation for land acquisitions.

Some 30% of the more than 148 projects that had faced legal complications saw them resolved as a result, according to the HCMC Real Estate Association.

Recent amendments to the Land Law are forecast to improve land valuations and enable speedy acquisition.

The policies also increase land availability to an extent, and address the imbalance between housing supply and demand in major cities, according to real estate consultancy Savills.

Several real estate agencies have forecast increased demand in HCMC this year, especially in the industrial property and office rental segments. But they do not expect the housing segment to improve much.

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