Revenue of the real estate sector in Ho Chi Minh City reached VND123.9 trillion (US$4.9 billion) in the first half of this year, up 6.1 percent year on year, the municipal statistics agency reported.

The property business in the southern metropolis made a slight rise, from a growth rate of 2.51 percent in the first quarter to 2.94 percent in the second.

Between January and June, 570 firms were licensed for business in real estate, with a total pledged capital of over VND27.8 trillion ($1.1 billion), down 17.3 percent in the number of newly-licensed enterprises but up 4.1 percent in capital year on year.

In 2023, the city’s real estate sector reported negative growth, but this year has seen the industry make a rebound.

The real estate market passed through the gloomy period thanks to the efficiency of relevant policies, lower lending rates, and increased access to loans, according to the city’s statistics office.

During the six-month period, the city granted nearly 3,400 certificates of land use rights and ownership of houses and land-attached assets.

The city’s real estate credit has maintained a positive trend over the past three months, according to the Ho Chi Minh City branch of the State Bank of Vietnam (SBV).

March saw a growth rate of 0.96 percent, while the credit expanded 1.15 percent in April and May.

Total outstanding real estate loans amounted to VND992.8 trillion ($39 billion) during the three-month period, making up 28 percent of the city’s total outstanding loans, and rising 2.78 percent against the figure recorded at the end of 2023.

Loans for residential purposes, such as home purchase, construction, and repairs, remained dominant at 68 percent of the total real estate credit.

Credit for industrial zones, export processing zones, and offices for lease recorded the highest growth among relevant aspects.

Lending for industrial and export processing zones improved 9.47 percent over the end of 2023, while credit for offices and high-rises jumped 11.2 percent.

The expansion of the housing market in the city is expected to create positive impacts on other industries, according to an assessment by the Ho Chi Minh City branch of the SBV.

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