Increasing credit quota hike, Vietnam property market enough to reverse to vibrant

Credit room loosening action is very positive and necessary for Vietnam real estate market. However, it can only be solved for good projects. Investors need to consider the price suitable for those wishing to buy for a living to stimulate the liquidity to increase again.

Outlook of Vietnam property market nowadays

Vietnam State Bank has adjusted the credit quota hike in 2022 by a rate of 1.5% - 2% for the whole system of credit institutions, leading to a boost to the industry. So, at least VND 150,000 billion will be allocated to banks.

Increasing credit quota by 1.5% - 2% points is positive news for the real estate market to tackle the challenges this time.

Picture: Vietnam property market

Mr. Nguyen Chi Thanh, Vice Chairman of the Vietnam Real Estate Brokers Association, said that most banks have used up all the credit rooms distributed over the past, making the real estate market see difficult when using the banks' capital. Besides, he assessed that increasing the credit quota by 1.5% - 2% was very positive and necessary for the property market. However, the extension of credit solved a part of the demand for deploying projects, raising the supply for the market.

Individual investors and people buying real houses will also consider their ability to pay when borrowing at high-interest rates. It is necessary to be a factor for both buyers and sellers. Demand is enormous, but investors need to consider the price following the buyer's ability to pay. The current price of many projects is relatively high. For good liquidity, the construction project owners should offer incentives and discounts for buyers to a sense of appropriate.

When the transaction is successful, developers will continuously have the capital to implement the approved projects. Therefore, the future market will get more vibrant than the present.

Source: Tan Long Land Company