HCMC real estate earnings climb 6% in H1 as market recovers

Ho Chi Minh City's real estate sector posted H1/2024 revenues of VND124 trillion ($4.87 billion), up 6% year-on-year, according to the municipal statistics office.

The office attributes the growth to improvements in the real estate market, which has overcome its moribund state thanks to favorable policies, lower lending rates, and greater access to capital for both businesses and individuals.

According to property website Batdongsan.com.vn, apartment prices in the city rose 6% year-on-year in H1, while prices in other segments remained stable.

Searches for land for sale saw the strongest growth in the period, up 45% over the year. This was followed by searches for apartments, villas and shophouses, which grew by 33%, 25%, and 22%, respectively.

Budget collection up 18%

Overall, the city's state budget collection of VND268.9 trillion ($10.56 billion) in the six-month period reached nearly 56% of the whole-year estimates while increasing 18% year-on-year.

Of this, VND195.6 trillion ($7.68 billion) came from domestic sources, up 29% year-on-year. The foreign-invested segment contributed VND43 trillion ($1.69 billion), up 19%.

Meanwhile, earnings from crude oil and import-export activities declined 13% and 2% year-on-year, respectively.

The city booked VND208.3 trillion ($8.18 billion) in service revenues excluding those from the real estate sector, up 7% year-on-year.

HCMC’s gross regional domestic product (GRDP) expanded 6.46% year-on-year in H1, the highest since 2020 when Covid-19 struck the country.

The growth is a significant improvement since Covid-19, with growth in the first half of 2022 and 2023 falling just short of 4%, according to the municipal statistics office.

However, this year’s pace is still slower than pre-pandemic levels, with the first half of 2019 seeing a 7.61% increase.