4 trillion dong of credit has "flowed" into real estate

Recently, the draft Resolution is seeking opinions on the mechanism to control and restrain real estate prices. The Ministry of Construction has proposed to tighten the loan limit for buyers of second homes and above, to a maximum of 50% and for third homes no more than 30%, to limit speculation and cool down real estate prices. Immediately, this proposal received many opposing opinions from people and members of the market.

Agreeing with the proposal of the Ministry of Construction, many people said that housing prices in big cities like Hanoi and Ho Chi Minh City have been continuously increasing over the past time. The average apartment price in Hanoi in the third quarter was over 90 million VND/m2, exceeding the affordability of the majority of people. While many people are currently struggling to find a place to live, another small segment of society owns a lot of real estate for speculation.

"This speculation will push up real estate prices, reducing the opportunity to own a house for low and middle income earners," said Nguyen Thu Hien, Hanoi.

Mr. Nguyen Huy Khoi - Hanoi said: "For families with many members who want to own real estate for their children and grandchildren, 1-2 real estates is also normal. But for investors who profit from land rent differences, I agree with tightening credit to limit bank loans to invest in a second or more real estate."

Many opinions say that, to implement this proposal, it is necessary to have a complete data system to target the right subjects. Because in reality, it is not easy to determine the exact number of real estate properties that a person owns, because many people can circumvent the law by having others stand in their names or borrow real estate capital. Moreover, if only tightening loans for the second or more real estate properties is not enough, there must be synchronous solutions to reduce housing prices.

Mr. Nguyen Quoc Khanh - Vice President of Vietnam Association of Real Estate Brokers (VARS) commented: "If it is just a restriction on lending, in terms of credit principles, banks still have the right to lend assets when qualified. Therefore, there needs to be more solutions such as supply sources or faster procedures".

"It is very difficult to define which group is speculative and which group is healthy investment in the market. When families or people need to buy another house, maybe for retirement, they can leave it to their children and grandchildren, it is very difficult to classify them as speculative," said Ms. Nguyen Hoai An - Director of CBRE Hanoi.

According to experts, to control prices and solve the root cause of the problem, it is necessary to increase the supply of housing, especially the affordable commercial housing segment and social housing. Figures from the State Bank show that as of the end of August, about 4 million billion VND of credit had "flowed" into real estate, an increase of 19% over the same period last year.

Source: https://vtv.vn/4-trieu-ty-dong-tin-dung-da-chay-vao-bat-dong-san-100251016100141582.htm