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The State Bank of Vietnam (SBV) extends the credit limit in 2022 for a number of credit institutions. Accordingly, the credit room limit is adjusted from 0.7 percent – 4 percent for different commercial banks.
Although just several commercial banks were approved credit room extension, according to experts, real estate businesses are excited about VND457,000 billion, which will pump into the market according to the 2022 credit growth target of 14 percent.
This is a positive move, which has a strong impact on customers’ psychology, helping the market get more transactions from real home buyers and the real estate market is expected to heat up.
Previously, the SBV had tightened credit resulting in limited supply of houses in the past eight months; worse, most of high quality housing projects were invested by reputable companies with good financial background. Therefore, the move to loosen the room will help businesses develop new supply and free up inventories in the near future.
However, according to experts, the new credit room only helps to relieve part of the thirst for capital of businesses and buyers, cash will flow to good quality projects with reasonable prices which satisfy customers’ needs of housing.
