The Hanoitimes - Total outstanding loans in real estate and consumer lending saw a sharp increase, making it necessary to limit consumer loans being used for investment in the real estate sector. Real estate loans swell despite SBV's tightening policy Lending to real estate remains strong despite the fact that the structure of credit has now been shifted to manufacturing sector, especially in priority fields, according to the State Bank of Vietnam (SBV), while loans are tightened to sectors deemed as risky, with a view to ensuring the safety and healthy development of the banking system. Illustration photo. As a result, property developers are having difficulties accessing loans, said Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association (HoREA), due to banks' decision to limit lending in real estate sector as per the central bank's request. Nevertheless, in the first five months of 2018, outstanding loans still increased by 6.16% as … [Read more...] about Consumer credit pours into Vietnam’s real estate
Vietnam real estate investment
Vietnam real estate outlook sparks foreign investor rush
Ranked high for development prospects in the Asia-Pacific region, Vietnamese real estate is attracting increased investment interest. Big names in the global real estate industry are choosing Vietnam as their next investment destination because it shows great potential for future development, a recent report says. Tokyo-based Nomura Real Estate made a notable transaction in January when it bought a 24 percent stake in Ho Chi Minh City’s Sun Wah Tower. The Asia Pacific Investment Quarterly report for the first quarter of 2018 says that the purchase of a stake in the grade A building in HCMC’s District 1 shows that the city’s office market continues to record healthy demand and high occupancy. The report, prepared by global real estate service provider Savills, says that apart from office spaces, the hospitality sector in Vietnam is also seen as an attractive investment option for foreign investors. Japan’s Mikazuki Hotel in January announced plans to invest $100 … [Read more...] about Vietnam real estate outlook sparks foreign investor rush
Real estate firms in a spin over condotel oversupply in Vietnam
Real estate organizations in Vietnam are concerned that 2018 could be a difficult year for the local condotel market due to oversupply. About 23,000 condotels were built last year in Vietnam, according to the Ho Chi Minh City Real Estate Association (HoREA). In the first quarter of this year alone, 2,078 new condotels were put on the market, the Ho Chi Minh based DKRA real estate firm estimated. Despite the high number, only 387 were sold in the first three months of this year, DKRA reported. Last year, only 33 percent of new condotels were sold, just half of the number reported in 2016, the company said. Condotel investments in Vietnam have not slowed since 2016, despite a warning of oversupply issued by HoREA in August 2017. The association estimated that from 2017 to 2019, around 29,000 new condotels would be put on the market. One of the reasons for the low demand is the lack of a legal framework to manage them, as they are currently not clearly specified in Vietnamese … [Read more...] about Real estate firms in a spin over condotel oversupply in Vietnam
Top five foreign investors in Vietnam’s real estate announced
Investors from Thailand, China and the US are expected to invest more in Vietnam’s realty market in the near future. Photo: enternews.vn According to experts, domestic investors have bought more since 2017, leading to competition with foreign investors with supply limited. The trend is forecast to continue this year. Residential land leads in terms of supply and transaction volume while housing and land for developments are most popular. Hanoi and Ho Chi Minh City have seen increases in new supply and transaction volume over the past years. House prices have tended to rise slightly while demand for quality housing increasingly grows. Investors have competed to buy projects at higher prices and several buildings under construction have been transferred to new investors. The shortage of supply will encourage investors to work with domestic partners to build projects. At the same time, real estate funds will seek to buy stakes in major realty companies. … [Read more...] about Top five foreign investors in Vietnam’s real estate announced
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