SGGPO 11/13/2023 11:10

Real estate credit for business purposes in the first 9 months of 2023 in Ho Chi Minh City grew strongly, while real estate credit for consumer and self-use purposes decreased.

On November 13, Mr. Nguyen Duc Lenh, Deputy Director of the State Bank of Vietnam, Ho Chi Minh City branch, said that the latest updated data up to the end of September 2023, outstanding real estate credit in Ho Chi Minh City reached about 925,000 billion VND, an increase of 1.9% compared to the end of 2022.

Specifically, real estate credit for business purposes still maintains a growth rate and grows higher, reaching VND 277,000 billion in the first 9 months of 2023, up 7.5% compared to the end of 2022. Of which, outstanding loans for infrastructure development of industrial parks and export processing zones increased by 10.5%; real estate loans for office and high-rise buildings increased by 7%; loans for other real estate businesses increased by over 20%.

Outstanding real estate credit for consumption and self-use purposes (including purchase, transfer, lease of land use rights to build houses, construction works for residence or self-use; social housing loans; construction, renovation, purchase, lease, lease-purchase of houses for residence) reached 648,000, accounting for 70% of total outstanding real estate debt, down 0.3% compared to the end of 2022.

Real estate credit in Ho Chi Minh City for business loans increased in the first 9 months of the year

According to Mr. Lenh, although the credit growth rate in Ho Chi Minh City is lower than the general credit growth rate, the scale of outstanding real estate credit has not changed much, real estate credit still accounts for 28% of the total outstanding credit in the area.

“The low growth in real estate credit is mainly due to the decrease in credit demand, especially the decrease in people's demand for housing, which affects real estate credit for consumer and self-use purposes,” said Mr. Lenh.

Mr. Lenh also said that for current solutions, in addition to continuing to organize and implement a good monetary and credit policy, best meeting the capital needs of the economy, it is necessary to focus on stimulating consumption and investment, thereby stimulating growth. Along with that are synchronous solutions on law, construction, finance, administrative reform, etc. to support the real estate market to grow and develop in the coming time.

Meanwhile, regarding real estate credit in the whole industry, at the online conference to deploy the Prime Minister's and Government's telegram 993/2023 on continuing to resolutely implement solutions to develop the real estate market organized by the State Bank of Vietnam and the Ministry of Construction on the morning of November 13, Ms. Ha Thu Giang, Director of the Department of Credit for Economic Sectors (SBV) also said that by September 30, 2023, the total outstanding credit balance for the real estate sector of credit institutions (CIs) reached VND 2.74 million billion, up 6.04% compared to the end of 2022, accounting for 21.46% of the total outstanding credit balance for the economy. Of which, real estate credit focused on consumption and self-use purposes accounted for 64% and outstanding credit for real estate business activities accounted for 36% of outstanding credit balance in the real estate sector.

According to Ms. Giang, in the first 9 months of the year, real estate business credit grew higher than the general credit growth rate and the same period last year. “This shows that the solutions and efforts of the Government, the banking sector, ministries, branches and localities in removing difficulties and obstacles for the real estate market are gradually showing effectiveness. In addition, credit institutions are also actively implementing loans according to the Government and Prime Minister's housing programs,” Ms. Giang emphasized.