Real estate business credit is increasing very high, from 20 - 21%

Speaking at the Vietnam Financial Advisors High-Level Forum VWAS 2025 organized by the Finance - Investment Newspaper and the Vietnam Financial Advisors Community (VWA) on the afternoon of September 25, Dr. Can Van Luc, chief economist of BIDV, member of the Prime Minister's Policy Advisory Council, commented that "real estate credit is increasing very high".

Dr. Can Van Luc speaks at the Forum.

Dr. Can Van Luc warned about the shortcomings of the real estate market. Real estate business credit alone is increasing very high (increased by more than 20% since the beginning of the year). In addition, the economy 's dependence on bank capital is increasing day by day.

Specifically, real estate business credit is currently increasing by 20-21%, double the overall credit growth rate of the entire system; credit for home purchase and home repair loans is recovering more slowly, increasing by only 12%.

As of mid-2025, bank credit accounted for 59% of the total capital supply to the economy while the proportions of foreign direct investment (FDI) and public investment were 13.96% and 13.23%, respectively. These figures at the end of last year were 50.6%, 15.01% and 16.31%, respectively.

“The bond and stock channels by mid-2025 only accounted for 9.95% and 0.23% respectively, while at the end of last year they were nearly 11% and 3.3%. This shows that the bond and stock channels have not yet become long-term capital supply channels for the economy. In other words, the financial market is developing disproportionately,” said Dr. Can Van Luc.

For the real estate market, there are many supporting factors such as: The world economy is slowing down but not in recession; Vietnam's economy is entering a new era; the domestic macro economy is stable, institutional breakthroughs, public investment and infrastructure development are promoted...

In addition, the current “extremely attractive” interest rate level also supports the real estate market (low interest rates are expected to be maintained in 2025 - 2026). Not to mention, a series of policies to remove obstacles for projects, encourage social housing... have been issued, a number of important laws continue to be studied and amended, which will also help the market develop sustainably.

However, this economist also pointed out the biggest problem of the real estate market is the imbalance of supply and demand, unreasonable segmentation, and too high housing prices. This is also the reason why the liquidity of the current housing segment is very weak.

According to a survey by BIDV Chief Economist, it currently takes a civil servant in Vietnam 26 years to buy an average-priced apartment, while the world average is 15 years.

If Vietnam does not have more drastic and synchronous solutions in the coming time, this number will continue to increase and the dream of owning a home for young people will become more and more distant.

Therefore, Mr. Can Van Luc recommended solutions to solve the problem of real estate prices. Accordingly, the Management Agency needs to accelerate the completion of institutions, legal framework, and build a database of land and real estate; at the same time, have specific measures to handle the shortcomings that cause real estate prices to increase rapidly.

“We cannot let real estate prices increase like this forever. Taxing second-hand real estate is just one thing, we need many synchronous solutions such as: Controlling the real estate credit valve, building a database to prevent speculation and price inflation; diversifying capital sources and products…”, Dr. Can Van Luc recommended.

Source: https://baotintuc.vn/kinh-te/tin-dung-kinh-doanh-bat-dong-san-dang-tang-rat-cao-tu-20-21-20250925175700085.htm