Home demand drives property credit

Home demand drives property credit

As policy steers credit towards end-users, Vietnam’s property lending is increasingly anchored in real housing demand, with stable growth masking a deeper shift in how capital is allocated.

Speaking at a real estate seminar organised by VIR on May 12 in Ho Chi Minh City, Le Thi Thi, head of the General Affairs Division at the State Bank of Vietnam (SBV) Region 2, said that as of March, outstanding real estate loans in Region 2 accounted for approximately 27.5 per cent of total outstanding credit, up 2.34 per cent compared to the end of last year and 21.39 per cent on-year.

“This indicates that real estate credit remains a segment maintaining stable growth and generating strong spillover effects across related sectors. Capital flows continue to be directed towards owner-occupied demand. Specifically, lending to homebuyers for self-use has consistently accounted for around 66 per cent of total real estate credit outstanding since the end of 2025; outstanding loans to this group rose 1.23 per cent from the end of last year and 12.78 per cent on-year,” she said.

Regarding implementation of the $5.8 billion credit package, Thi noted that since the programme’s launch, the SBV has announced interest rate adjustments seven times, following a downward trajectory.

“Accordingly, from initial rates of 8.7 per cent per annum for developers and 8.2 per cent per annum for homebuyers at the start of the programme, lending rates have now been reduced to 6.1 per cent per annum for developers and 5.6 per cent per annum for homebuyers,” she said.

For developers, Thi added that in Region 2, seven projects have so far been disbursed under the programme, with cumulative disbursements reaching approximately $36.9 million and outstanding loans of $33.7 million.

“In Ho Chi Minh City alone, four projects have received disbursements, with total disbursement value of approximately $20.2 million and outstanding loans of $16.9 million. In addition, three projects previously announced by the municipal People’s Committee have secured loans from commercial banks at interest rates ranging from 7.9 per cent to 8.5 per cent per annum, while one project previously accessed funding from the Binh Duong Development Investment Fund,” she added.

Le Thi Thi, head of the General Affairs Division at the State Bank of Vietnam Region 2

In Dong Nai province, three projects have been disbursed under the programme, with total disbursement value of $16.7 million, equal to current outstanding loan, attendees heard

For individual borrowers, 176 customers in Region 2 have accessed the programme, with total disbursements of $4.6 million and outstanding loans of $4.4 million.

In addition, commercial banks in the region have extended financing to social housing projects outside Region 2, including three projects in Tay Ninh, Dong Thap and An Giang provinces, with disbursements to developers totalling $29 million and current outstanding loans of $19.9 million.

“The $5.8 billion credit package does not utilise the state budget, but is financed by commercial banks through their own balance sheets,” Thi said, responding to concerns from real estate developers about difficulties in accessing capital for social housing projects due to lending rates being lower than prevailing deposit rates.

“Notably, the SBV has introduced highly specific support policies to encourage commercial banks to participate in lending to this segment. In particular, banks are allowed to exclude outstanding loans under the social housing programme from their annual credit growth quotas. This serves as a critical lever to support disbursement,” she said. “To address these challenges, especially for social housing developers, the banking sector will further strengthen coordination to remove bottlenecks for businesses. For real estate developers, the banking sector will work closely with local Departments of Construction to promptly identify and resolve specific difficulties on a case-by-case basis.

“We strongly encourage developers to provide detailed information on their challenges so that coordinated solutions can be implemented,” she added.

VIR