Deputy Director Nguyen Duc Lenh of the State Bank of Vietnam (SBV) in Ho Chi Minh City, said that real estate credit in the city has maintained a positive growth rate in the past three months. Specifically, in March 2024, it increased by 0.96 percent; in April, it increased by 1.15 percent. In May, it continued to grow by 1.15 percent and reached an outstanding balance of VND992.8 trillion, accounting for 28 percent of the total outstanding credit balance in the city and an increase of 2.78 percent compared to the end of 2023, higher than the overall credit growth rate in the city. Credit in Ho Chi Minh City increased by 1.93 percent by the end of May 2024 compared to the end of 2023.
According to Mr. Lenh, housing credit, loans for home purchase and self-use purposes still account for the highest proportion, accounting for 67.78 percent of the total outstanding real estate credit balance in the city.
A positive point in this segment is that housing credit has grown again with an increase of 1.2 percent compared to April 2024, while in previous months it had grown negatively. Mr. Lenh said this is the credit segment with the highest proportion, so the growth of credit in this segment not only promotes the growth of real estate credit but also meets people’s housing needs, thereby positively impacting the real estate market and economic growth.
In addition, real estate credit for infrastructure development of export processing zones - industrial parks and office for lease continues to maintain a growth trend and posts the highest growth compared to other fields. Moreover, credit for export processing zones - industrial parks increased by 9.47 percent and credit for offices and high-rise buildings increased by 11.2 percent compared to the end of 2023.
Although the outstanding loan balance for this field is low compared to the total outstanding real estate credit balance, the increase in credit reflects the development trend of this field and is a positive factor directly impacting business activities and economic growth.
In the context of low capital absorption of the economy, the growth of the real estate market will positively impact and have an effect on other industries and fields, including bank credit activities.
Explaining why real estate credit has grown well recently, especially credit for home purchases, Mr. Lenh said that it comes from favorable factors in terms of mechanisms such as low interest rates, good ability to meet the capital needs of credit institutions, the launch of preferential credit packages for social housing, the real estate law, the housing and real estate business law having into effect early along with the government’s determination to remove difficulties for the market.
These positive changes have helped pave the way for continued promotion of the real estate market recovery and growth in the coming time.
