Nguyen Tri Hieu, Economist The real estate lending rate may be much higher than the published number. The SBV’s regulations on credit for real estate business are aimed at real estate loans for profit purposes. However, many people now buy houses or repair homes with loans from banks, but these loans are now classified as consumer credit and, if the mortgage is included in real estate credit, it will account for about 20 per cent of total outstanding loans. If real estate credit is not controlled and money is still poured into the sector next year, the real estate market may return to saturation, recession, and oversupply. Tran Du Lich , Economist The bad results of bankers pumping investment into the real estate and security markets during 2007-2008 had a great negative impact on the markets, which have not been fully overcome yet. This is a major lesson for the whole economy in general and the banking system in particular. Therefore, I would say that the credit tightening and … [Read more...] about Real estate credit under strict control
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Restrictions on real estate credit bearing fruit
Recent moves to restrict credit for real estate are having an effect. One day in July, Ms. Nguyen Mai Phuong, a 45-year-old businesswoman living in Ho Chi Minh City’s Binh Thanh district, visited a few banks to seek a loan of VND2.5 billion ($110,000) to purchase land. She was told of the new interest rates on home loans, ranging from 8-10 per cent per annum for the first year, depending on the customer’s objectives, and then 11-12 per cent. “I’m re-considering my plans, as these rates are much higher than a few months ago,” she said. Most local real estate developers have also been restricted in approaching capital resources over the last year due to the State Bank of Vietnam (SBV)’s moves to tighten capital flows into the local property market by raising the credit risk on real estate loans and reducing the proportion of short-term capital to be used for medium- and long-term loans by commercial banks, due to concerns about bad debts amid the … [Read more...] about Restrictions on real estate credit bearing fruit
Hanoi`s real estate projects attracst foreign investors
The Hanoitimes - Foreign investors are eyeing real estate projects in the northern region, particularly Hanoi, as they see the region’s potential, heard a conference held by the Commercial Real Estate Services (CBRE) Vietnam Company on January 4. In 2017, Vietnam remained an attractive destination for foreign investors with total FDI capital registered in the country hitting a record high of 35.88 billion USD, up 44.4 percent against last year. Real estate ranked third in terms of FDI attraction, accounting for 8.5 percent of the total registered capital. According to CBRE, since 2017, many foreign investors have paid special attention to Hanoi’s property market. They have joined hands with several big domestic investors to carry out projects, for example, Sumitomo Group’s deal in the northern side of the Red River which is expected to be a hot spot for real estate. The Japanese group decided to participate in Vietnam’s real estate market through … [Read more...] about Hanoi`s real estate projects attracst foreign investors
Real estate remains third largest FDI lurer
According to Nguyen Hoai An, Manager of research, consultation, appraisal and asset management of CBRE, many foreign investors have realized the future potential of the real estate market in the Northern region, particularly in Hanoi.In 2017, Vietnam remained an attractive destination for foreign investors with total FDI capital registered in the country hitting a record high of US$35.88 billion, up 44.4 percent against last year.Although not exceeding 10 pct of the total registered capital, FDI in the real estate sector has continuously increased over the past five years. Previously, investment capital in the real estate sector focused on the southern market. However, according to CBRE, since 2017, many foreign investors have paid special attention to Hanoi’s property market.They have joined together with several big domestic investors to carry out projects, for example, Sumitomo Group’s deal on the northern side of the Red River which is expected to be a hot spot for real … [Read more...] about Real estate remains third largest FDI lurer
Real estate association claims HCM City won’t face real estate bubble
The Ho Chi Minh City Real Estate Association (HoREA) predicted stable development for the city real estate sector and claimed that there would not be a real estate bubble in 2018. illustrative photo According to the HoREA, the real estate sector development will continue to be stable and positive. From 2018 to 2020, there will be an adjustment to balance supply and demand. Affordable housings with prices around VND1bn (USD44,000) per apartment still have the most buyers.It also predicts cheaper high-end housing in order to attract more customers and more land sales. However, disputes at apartment buildings will become more common and need to be addressed.FDI and overseas remittance will remain important sources of capital. Firms can find various opportunities in HCM City as a number of infrastructure projects are being planned or carried out such as the metro lines, new buses, waterway public transport and the upgrade of Tan Son Nhat Airport.HCM City authorities are considering … [Read more...] about Real estate association claims HCM City won’t face real estate bubble