Property tax revenue soars 50 percent in Ho Chi Minh City, and more news

For PropertyGuru’s real estate news roundup, Ho Chi Minh City’s revenue from personal income tax and registration fees associated with real estate transactions has surged by 50 percent to over VND6.54 trillion (USD257.6 million) in the first nine months. In other updates, Singapore’s leasing volume of private residential properties (excluding executive condominiums) climbed 24.4 percent quarter-on-quarter to 25,731. Lastly, JLL Thailand has successfully negotiated a significant real estate acquisition on Bangna-Trat Road for a major digital infrastructure company, reinforcing Thailand’s position as an emerging hub for data centres.

HCM City real estate tax revenue jumps 50 percent

Ho Chi Minh City’s revenue from personal income tax and registration fees associated with real estate transactions has surged by 50 percent to over VND6.54 trillion (USD257.6 million) in the first nine months. As many as 75 percent of revenue collected was from personal income tax related to real estate transfers and the remaining 25 percent from real estate registration fees, according to the HCM City Tax Department. The revenue from other land-related revenue, including land use fees and taxes, has risen by 58 percent to VND10.51 trillion in the period.

VietnamPlus reports that the department has attributed the growth in revenue to the proactive involvement of residents in real estate transactions ahead of new legislation effective on August 1, and a recent decision by HCM City authorities to raise land prices.

Singapore private residential leasing surges 24.4 percent in Q3 2024 – Savills

Savills Research shares that the leasing volume of private residential properties (excluding executive condominiums) climbed 24.4 percent quarter-on-quarter to 25,731. This is due to seasonal factors such as the school year, corporate relocation cycles, and lease expiries and renewals.

As reported by RETalk Asia, the number of rental contracts was also 9.9 percent higher than the 23,422 recorded in the same period in 2023. The QoQ growth in the third quarter was observed across various property types and market segments. Rental contracts for landed properties surged by 46 percent QoQ, while contracts for non-landed residential properties rose by 23.2 percent QoQ.

Overall, the robust growth in lease volume in Q3 continued to be mainly driven by more people upgrading their accommodation. This was fuelled by more palatable rents and an ample supply of units from new completions. With rents falling for the four prior quarters, more tenants have begun to look for one- to two-bedroom units instead of sharing a larger unit with others.

JLL secures significant plot for digital firm in Thailand

JLL Thailand has successfully negotiated a significant real estate acquisition on Bangna-Trat Road for a major digital infrastructure company, reinforcing Thailand’s position as an emerging hub for data centres.

The transaction aligns with a growing interest from data centre operators to invest in Thailand, encouraged by factors such as the nation’s readiness to serve as a digital hub, increasing demand for data-related services, and supportive government policies. These include Thailand’s Cloud First Policy initiative and the Board of Investment’s approval of long-term investments to strengthen digital infrastructure.

Thailand’s potential as a regional data centre hotspot is underscored by its robust internet penetration rate of over 85% and substantial social media user base. Such indicators highlight the country’s foundational strengths in the data centre business. A planned USD500 million investment by a global digital infrastructure corporation further confirms Thailand’s growing appeal as a prime location in Southeast Asia for data centre development.

Mr. Krit Pimhataivoot, Head of Capital Markets at JLL Thailand, remarked on the transaction in DataCenterNews Asia: “The increasing demand for high-quality data centre facilities in Thailand demonstrates the country’s growing importance as a hub for digital infrastructure in Southeast Asia. Data Centre is a highly risk-averse business with highly detailed site selection criteria aiming to mitigate risks from all angles. We are delighted to have played a crucial role in facilitating the successful transaction of this prime plot.”

The Property Report editors wrote this article. For more information, email: [email protected].