Outstanding loans for the real estate sector grew by 8.8% last year, below the banking sector’s credit growth of 13.7%, said Nguyen Quoc Hung, director of the Credit Department of the State Bank of Vietnam.
The State Bank of Vietnam’s recent move to tighten loans in the real estate sector is expected to have no impact on low-income earners who wish to purchase apartments worth less than VND1.5 billion (US$64,900).
Ho Chi Minh City (HCMC) attracted US$6.17 billion in foreign direct investment (FDI) in the January-October period this year, up 3.4% over the same period in 2018, according to the Department of Planning and Investment.
The real estate sector remains highly risky, so the Government has required the State Bank of Vietnam to report quarterly in case of property developers with outstanding loans of over VND5 trillion (US$215.22 million).
Ho Chi Minh City has attracted US$4.19 billion in foreign direct investment (FDI) so far this year, up 21.7% year-on-year.
In the first half of this year, foreign investors continued to take the upper hand in outstanding mergers and acquisitions (M&As) in Vietnam's real estate market.
The local real estate market has shown signs of deceleration so far this year, partly because of limited bank credit for the market, according to experts.
The merger and acquisition (M&A) scene in the first four months of 2019 has been active with the participation of both domestic and foreign investors.
In recent years, Vietnam’s real estate sector has been appealing to Asian investors, especially those from China and Hong Kong.
Investment inflows into the real estate sector are expected to shift from big cities like Hanoi and HCM City to other localities in the second quarter of the year, attendees heard at a conference held in Thanh Hoa Province on Saturday.
Ho Chi Minh City attracted over 1.55 billion USD in foreign direct investment in the first quarter of this year, up 20.4 percent year-on-year, according to the municipal People’s Committee.
The real estate sector saw 840 new enterprises established in the first two months of this year, 5.3 percent of the country’s total new firms during the period.
The latest wave of foreign direct investment (FDI) brings new opportunities and promises prosperity for the property market.
Foreign direct investment (FDI) poured into Vietnam’s real estate sector hit $500 million in January-February 2019, according to statistics of the Ministry of Planning and Investment.
The Trump-Kim Summit will take place in Hanoi, Vietnam on 27-28 February 2019. Experts say this world-class event will have a great influence on Vietnam's economy in general and the real estate sector in particular.