Real estate market "warming up"?

Vndirect Securities Corporation has just released an overview report on the real estate market with a lot of new information.

According to Vndirect, credit flowing into the real estate sector is increasing sharply in the first 6 months of 2024. By the end of June, total credit growth in the real estate sector reached 4.6%, of which real estate business credit increased by nearly 10.3% and credit for real estate consumption increased by 1.15%:

In the first half of 2024, housing credit in Ho Chi Minh City maintained positive growth. In which, the purpose for self-use of loans accounted for the highest proportion, up to nearly 67.8% of the total outstanding debt in Ho Chi Minh City.

“This growth figure reflects a positive shift in general market sentiment amid low home interest rates,”Vndirect commented.

According to the reporting unit, credit growth is also due to real estate development enterprises proactively borrowing to buy back bonds before maturity to restructure high-interest bond loans. However, real estate enterprises with standard project legal documents, qualified for sale and healthy financial structure will benefit from the real demand of home buyers.

Currently, state-owned banks such as Vietcombank, Vietinbank, Agribank and BIDV are still maintaining low interest rates for home loans and home repairs, thereby stimulating the general market's borrowing demand. Current interest rates for home and land loans are only 5-7%/year.

“Real estate credit continues to account for more than 20% of the total outstanding credit of the entire economy. We believe that when some laws are adjusted and take effect from August 1, it will help the real estate market and real estate credit recover more clearly in the coming period. At this time, the real estate supply is expected to return to a more stable state thanks to legal regulations, minimizing overlaps between the provisions of the law and the regulations of relevant agencies,”Vndirect review.