Credit for real estate are set to be further tightened in the coming time (Photo: VNA) Hanoi (VNA) – Authorities are planning to continue tightening credit for real estate in the time ahead, which is hoped to have positive impacts on the market, heard a forum in Hanoi on May 4. Chairman of the Vietnam Association of Realtors (VARS) Nguyen Manh Ha said credit for real estate will be under stricter control in the coming time as the central bank is collecting opinions about a draft document which will replace its 2014 circular on prudential ratios in operations of credit organisations and foreign banks’ branches. Under this draft, the maximum rate of short-term capital used to fund medium- and long-term loans will be reduced to 30 percent. Meanwhile, the capital-to-risk weighted assets ratio will be raised from 50 percent to 150 percent for personal loans of 3 billion VND and above. These amendments are set to have considerable influence on the real estate market, Ha … [Read more...] about Credit for real estate to be under stricter control
Investors loans for real estate
Changes expected to lay ahead for real estate firms
2019 is viewed as another good year for the middle-end property sector thanks to reasonable prices. Duong Duc Hien, Savills director of residential sales for North and Central Vietnam, said that 2018 saw many changes occur within the housing market in comparison to previous years. The mid-end sector of the market enjoyed a strong performance, with Hanoi topping the list of providers. The villa, row-house, and shophouse sectors also made good progress, buoyed by the increasing demand for residence and investment opportunities from customers. Meanwhile, the first half of 2018 witnessed a massive yet short-term trend of land investment in the northern province of Bac Ninh and other coastal localities, including Nha Trang, Phu Quoc, Quang Ninh, and Danang. However, these trends quickly settled down. As for resort projects, only a few were added to the total supply in 2018. This is largely due to interest in condotels, a “newcomer” in the market, cooling off in … [Read more...] about Changes expected to lay ahead for real estate firms
Controlling credit for real estate sector
Credit for the real estate sector should be controlled Since early this year, shares of real estate and construction companies listed on the Ho Chi Minh Stock Exchange (HOSE) and the Hanoi Stock Exchange (HNX) have attracted an increasing amount of investment capital. Investors poured hundreds of billions of dong into real estate shares each trading session. Commercial banks continually offered credit packages for individual and enterprise customers, most of it for real estate projects and purchase. The State Bank’s statistics showed that the total outstanding loan balance for the economy in the first 11 months of 2016 hit more than 5.35 million billion dong. Agriculture, forestry and fisheries; industry and construction; trade, transport and telecommunications; and other service sectors were the major users of loans, with credit for the industrial and construction sector accounting for 31 percent (more than 1.67 million billion dong) of the total. According to their … [Read more...] about Controlling credit for real estate sector
HCM City revokes licenses for real estate projects
While municipal authorities in HCM City are planning to revoke the licenses of hundreds of real estate projects, investors place blame on cumbersome regulations. Incomplete ground clearance Authorities of HCM City have asked the local Department of Natural Resources and Environment to review all ongoing real estate projects. The result of the review showed that, out of 479 projects, 327 were behind schedule. One example is the Hanh Phuc urban area project, with an estimated capital of VND9 trillion (USD43 million). The area would have covered 42 hectares, including apartments, housing and schools. It was expected to be finished by 2016, but there are doubts about this deadline at the moment. As of now, the ground clearance rate has only reached 30%. The Government Inspectorate once suggested the revocation of licenses from a number of investors. But authorities of HCM City asked to give investors an extension to complete the project. However, even with the extension for … [Read more...] about HCM City revokes licenses for real estate projects
SBV restricts real estate and construction loans
Document 563 sought tighter control over credit growth to meet the SBV’s target of 17 per cent for 2018, Photo: Le Toan According to experts, real estate firms need to apply more effort to cope with more stringent lending requirements starting this year, and with the coming influx of new supply. The State Bank of Vietnam (SBV) recently asked credit institutions and local offices of foreign banks to give lending priority to production and business and to strictly monitor the acquisition of consumer loans that are used, in reality, for investment and trading in real estate and/or securities. SBV’s recent Document No.563/NHNN-TTGSNH, issued in January by SBV, asked for tighter control over credit growth in order to meet its target. The credit growth target for 2018 was set at 17 per cent, lower than the growth rate of 18.17 per cent the year prior. SBV Governor Le Minh Hung has instructed financial institutions to lessen the focus on real estate and construction and … [Read more...] about SBV restricts real estate and construction loans