HCM City’s property market expected to recover soon: insiders hinh anh 1In Ho Chi Minh City (Photo: VNA)

HCM City (VNA) – Information relating to the loosening of credit room, and commitments from the Ho Chi Minh City People's Committee and other agencies on removing hurdles to transactions have led to experts' positive views on the future of the property market.

According to Vo Huynh Tuan Kiet, Director of the Housing Division of CBRE Vietnam, credit in 2023 will be more abundant than in 2022 thanks to the State Bank of Vietnam (SBV)'s decision to extend limits by about 1.5 - 2% for commercial banks to inject about 457 trillion VND (19 billion USD) into the market.

The SBV’s decision to loosen the credit room is a positive signal for the recovery of the domestic real estate market in general and HCM City in particular. Currently, many real estate projects have halted due to a lack of capital. Buyers face difficulties because they do not have access to credit to purchase houses. The facilitation of capital flow will help investors continue to implement projects and buyers have the opportunity to realise their dreams.

Kiet said that the source of money from the stock market is trending to increase again. In case the stock market rises to 1,300 - 1,400 points, there will be a large amount of capital put into the economy and real estate sector. The bond market is gradually recovering, he said, noting that this is also an important capital channel.

According to Deputy Director of the city’s Department of Natural Resources and Environment Nguyen Thi Thanh My, there are currently 116 real estate projects in the city that have problems related to the procedures for selling apartments, tax calculation and construction permits. Among them, 38 projects have been delayed for successive years.

Recently, the municipal People's Committee had a meeting with six real estate businesses to remove obstacles for seven troublesome projects in the city. These projects are located in districts 1, 4, 7, Tan Phu and Thu Duc city, she said.

In addition to providing legal support for commercial real estate projects, the city will also focus on solving issues related to investment procedures for social housing projects, worker accommodations and renovation of old apartment buildings.

It will focus on removing difficulties for 18 prioritised social housing projects and 16 degraded apartment buildings this year, My said.

With the above-mentioned solutions, HCM City is expected to bring to the market a large number of real estate projects in different segments, meeting the demand of the market, especially solving a lack of supply of affordable social housing./.