11:32 | 23/12/2015 Finance - Banking
(VEN) - Although real estate loans in 2015 have strongly increased compared to the previous year, the State Bank of Vietnam (SBV) claims capital inflows into the sector have only accounted for small proportion compared to overall growth.
Credit for the real estate sector has witnessed good growth - Photo: Can Dung
The Ministry of Construction’s report shows that total value of real estate inventories reached around VND59.395 trillion by September 20, a fall of 53.8 percent compared to the first quarter of 2013. The real estate market has flourished thanks to bank lending.
According to the SBV’s Credit Department, credit for the real estate sector has witnessed growth in recent times. However, the growth rate has been unsatisfactory. In particular, growth in real estate loans in the first nine months of this year reached 14.59 percent, while outstanding real estate loans accounted for just 8.05 percent of total outstanding credit.
Outstanding real estate loans have focused on segments such as construction, repairs and housing. According to the SBV, although growth in real estate loans in the first nine months of this year was higher than overall credit growth, outstanding real estate loans accounted for just 8.05 percent of total outstanding credit.
Promoting effective projects
The University of Economics and Business’ Vietnam Institute for Economic and Policy Research (VEPR) economic report conducted during the third quarter of 2015 shows that Circular 36/2014/TTNHNN has eased access to real estate loans, creating positive effects for the market. A recovery of the real estate market is seen as a positive sign for the economy.
The SBV has strengthened cooperation with ministries and departments to apply various measures to overcome difficulties facing the real estate market such as adopting VND30-trillion credit package for housing and adjusting lending regulations in accordance with actual demand. The SBV has also enhanced inspection of lending activities in the real estate sector such as limiting loans for inefficient new, large-size and high-level real estate projects.
To prevent real estate bubble and ensure sustainable development, the SBV said that they would strictly control credit activities in the sector.
According to the Credit Department’s leaders, credit institutions would provide capital for effective real estate projects and housing projects that have real market demand and would not provide credit for speculative high-risk projects.
The SBV’s Credit Department said that lending was prioritized to meet actual housing demand and investment into social housing.