Real estate market recovers, VPBank accelerates home loans

Real estate market recovers, VPBank accelerates credit growth

The macro -economic picture is showing clear signs of recovery, bringing new vitality to the real estate market after a long period of stagnation. Legal bottlenecks are gradually being removed, a series of new projects are starting, investor sentiment is improving and new supply is increasing, creating a new growth cycle for the industry. In parallel, the Government's direction on implementing credit solutions to support young people to be able to buy houses has also created an important driving force for the market.

CBRE's report shows that real estate activities in the second quarter of 2025 have accelerated significantly, in line with previous forecasts. Specifically, the total primary transaction volume in both the apartment and land segments in Hanoi and Ho Chi Minh City reached about 9,300 units, an increase of 47% over the previous quarter. In the first 6 months of the year, the transaction volume reached about 15,600 units, an increase of 3% over the same period in 2024.

From a banking perspective, the revival of the real estate market has brought opportunities for homebuyers and investors, while opening up room for strong credit growth. “There is no factor that boosts credit more than a vibrant real estate market. Data shows that years of strong credit growth always coincide with periods of vibrant real estate markets,” Mr. Ngo Hoang Long, Director of VPBankS Research Center, emphasized at VPBankS Talk #5.

Taking advantage of this context, Vietnam Prosperity Joint Stock Commercial Bank (VPBank, HoSE: VPB) has quickly deployed flexible credit solutions, especially focusing on home loans aimed at customers with real needs. Right from the beginning of the year, VPBank launched a preferential home loan package exclusively for young customers under 35 years old, with interest rates starting from only 5.2%/year and a flexible interest rate fixation period of up to 24 months and simple procedures. With this loan package, home buyers can access loans up to 80% of the property value, with a maximum loan term of 25 years.

Through the above solutions, in the second quarter of 2025 alone, VPBank's credit recorded a growth rate of 14%. In particular, mortgage products led the growth of the individual customer segment thanks to the recovery trend of the real estate market, according to Ms. Le Hoang Khanh An, VPBank's Chief Financial Officer.

At the same time, Ms. Khanh An said that with the group of large corporate customers, VPBank recorded diverse growth in many industries, from manufacturing and processing, wholesale and retail, to tourism - hotels as well as real estate, reflecting the strategy of taking advantage of opportunities from the market while still ensuring risk balance through portfolio diversification.

The driving forces from the real estate segment have contributed positively to the overall results, helping VPBank's consolidated credit balance reach over VND842,000 billion, up 18.6% compared to the beginning of the year and 30.3% compared to the same period. VPBank's total assets exceeded VND1.1 million billion, the highest among private banks without state capital. At the same time, VPBank's consolidated pre-tax profit in the first half of the year reached VND11,229 billion, up 30% compared to the same period.

VPBank recorded strong credit growth in the first half of 2025.

Opportunity to improve asset quality

The recovery of the real estate market also has a positive impact on debt settlement. Mr. Phung Duy Khuong, Permanent Deputy General Director in charge of the South and Director of VPBank's Personal Banking Division, shared: "With the warming and prosperity of the real estate market, we believe that the recovery and settlement of debts from real estate mortgage loans will achieve positive results in the last 6 months of 2025". The recovery of real estate not only improves asset quality but also reduces the pressure on provisioning, thereby supporting profits.

The real estate market outlook is being strengthened by many macro policies: Resolution 42 is legalized, Resolution 68 on private economic development, along with new laws such as the Land Law, Housing Law and Real Estate Business Law, as well as efforts to promote public investment, accelerate economic growth...

In particular, the codification of Resolution 42 in the Law on Credit Institutions (amended) will create conditions for banks, including VPBank, to be given the right to seize collateral when customers violate payment obligations. Mr. Khuong said that Resolution 42 will create a more open, transparent and clear legal corridor, thereby positively affecting the debt collection and settlement work of banks.

The new regulations help banks to be proactive, shorten the time and reduce the cost of debt settlement, while enhancing customers' sense of cooperation in fulfilling financial obligations. Thanks to the internal strength that has been carefully prepared in advance, VPBank is currently considered by many organizations to be one of the banks with the best ability to take advantage of this new legal corridor.

"We believe that large banks with large provisioning costs such as VPB, CTG and small-sized banks such as OCB, MSB, VIB will benefit more than the remaining group if this draft is passed," MBS Securities' report commented on the banking outlook when Resolution 42 is legalized.

Source: https://baodautu.vn/thi-truong-bat-dong-san-phuc-hoi-vpbank-but-toc-cho-vay-mua-nha-d365919.html