SBV's credit growth target helps real estate recovery

SBV's credit growth target helps real estate recovery

Experts said a large portion of this influx of cash will likely flow into promising investment avenues like real estate and securities, especially given the current volatility in the gold market.

An urban complex in Hoàng Mai District, Hà Nội. VNA/VNS Photo

The State Bank of Vietnam's (SBV) objective of a 16 per cent credit growth in 2025, injecting approximately VNĐ2.5 million billion into the economy, will likely speed up the recovery of the real estate sector, according to the Việt Nam Association of Realtors (VARS).

Responding to a directive issued by Prime Minister Phạm Minh Chính, 24 commercial banks reduced deposit interest rates by 0.1-2 per cent, the largest adjustment this year. Additionally, many banks launched specific loan packages for young homebuyers, signalling a potential shift of funds towards the property sector.

Experts said a large portion of this influx of cash will likely flow into promising investment avenues like real estate and securities, especially given the current volatility in the gold market.

Economist Dr Cấn Văn Lực from BIDV said thanks to Việt Nam's efforts in economic growth in 2024-2025, along with controlled inflation and low interest rates, were key drivers for the real estate market's resurgence. He also anticipated that institutional reforms, improved planning, and increased public investment would further propel the market. Financial pressures on property developers eased, improving their access to capital.

Nguyễn Quốc Anh from batdongsan.vn, a popular real estate listing site in Việt Nam, said there had been a significant change in buyers' and investors' sentiment since late 2023, with more individuals now ready to purchase property, particularly land plots.

The Institute of Construction Economics under the Ministry of Construction predicted a more active market in 2025, with housing and land prices potentially rising by 8-10 per cent. They also noted that current preferential home loan rates and reduced rates for social housing credit packages would positively influence the real estate market by attracting more bank lending.

In light of these developments, VARS advised real estate companies to concentrate on products that meet demand, especially social and mid-range housing, to facilitate loan access and sales. This aligns with the strategy of Trần Anh Group's Chairman Trần Đức Vinh, who is focusing on social housing projects to overcome previous development challenges.

Chairman of the HCM City Real Estate Association Lê Hoàng Châu said that while commercial housing offers higher profit margins, social housing projects would benefit from faster legal processes, enabling quicker capital recovery.

For individual investors, VARS recommended careful consideration before investing, particularly when using leverage. They advise against following market hype and suggest prioritising areas with real development potential, complete infrastructure, and strong demand for long-term investment success. Overall, the real estate market in 2025 presents significant recovery opportunities, but thorough preparation and flexible strategies are crucial for all participants. 

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