Ho Chi Minh City-based real estate enterprises have shifted their investments to other provinces as the city has limited licensing of new projects and tightened control on investment procedures along with a used-up land fund, especially in the inner city area.
Vietnam’s real estate sector has witnessed significant participation from Japanese investors through cooperation with Vietnamese businesses recently, promising to bring benefits to the real estate market.
The HCMC Department of Planning and Investment reported that 26,614 businesses were established during the first eight months this year with the total registered capital of VND148,396 billion (US$6.53 billion).
Trading, merging and transfer activities of property projects will develop more strongly than before after August 15 when the National Assembly’s resolution on tackling bad debts becomes effective, reported HCMC Real Estate Association.
Land price has reduced fever in HCMC outskirts after city leaders required police agency to investigate land price fever and tackle brokers for spreading false rumors to rocket the prices and make profit.
HCMC recorded 12,088 domestic firms established with the total registered capital of VND132,600 billion (US$5.83 billion), in which real estate firms’ funds was highest accounting for 38 percent of total in the first four months this year.