Positive developments in the real estate market
Positive developments in the real estate market
The SBV has received 24 social housing initiative applications for a $5 billion loan package in six provinces, including 15 social housing projects in the provinces of Bac Giang, Tra Vinh, and Tay Ninh, and nine projects in the provinces of Binh Dinh, Phu Tho, and Ba Ria-Vung Tau.
The positive news was revealed on July 4 by Nguyen Thi Hong, Governor of the SBV, during the government's online national conference.
"Local governments are issuing building permits and credit institutions are also prepared to finance construction initiatives. Several banks, including BIDV and Agribank, have begun lending under this credit offering," said Hong.
Credit made available to real estate businesses rose by 14 per cent in the first five months of the year, according to the SBV, indicating that market-improving solutions have begun to take effect. However, credit for real estate purchasers dropped by 1.32 per cent during the same period.
"Currently, private investors and homebuyers are not yet prepared to invest, so credit is still limited, however, eliminating legal obstacles and adjusting house and property prices is another way to increase demand and investment in the real estate sector," Hong explained.
Hong emphasised that easing access to credit is of vital importance. She stated that the SBV is directing credit institutions to evaluate their procedures to increase credit availability. In addition, the operator is contemplating an announcement of credit expansion soon, at the behest of the Prime Minister.
The governor stated that interest rates have returned to pre-pandemic levels following a succession of recent rate reductions, while noting that the SBV is also one of the few central banks in the world that is actually lowering interest rates at the moment.
According to Governor Hong, the SBV is tracking macroeconomic developments and government directives vigilantly.
As of June 27, the credit of the entire economy had increased by 4.03 per cent since the start of the year and by 9.08 per cent on-year.
