Property association wants a $4B credit quota hike

Experts said Friday that property firms need capital amid tightening credit, which may fuel a property shortage in the coming time. Many cities are facing a lack of supply, while real estate developers are stalling the implementation of approved projects because of credit policy tightening and procedural difficulties. Therefore, the property association needs a $4B credit quota hike. 

Property developers are starving for capital

The Ho Chi Minh City, Real Estate Association, needs the Banks' credit quota to go up from 14$ to 15% to boost the property sector. According to the association, State banks should implement a 1% increase of over VND100 trillion ($4.1 billion) in December and January. The association chairman said increasing the credit quota would help pump capital into the property market and other vital sectors. He added that Vietnamese welcome Tet in just a few days, the lunar new year festival, so the credit quota should be increased to bolster sales. 

Real estate developers, investors, and homebuyers are in trouble because they need help accessing credit. He said that several businesses need more cash to continue implementation, and timely action is necessary for Vietnam's market to avoid a crisis. He also warned a crises consequences could lead to a full-blown economic recession.  

He added that the capital booster would help homebuyers purchase property at reasonable interest rates and other provinces/cities remove bottlenecks in implementing real property projects.

If customers are interested in buying/investing property, please contact Tan Long Land Sales Department immediately to get the details as soon as possible through this number: 0986 720 720. 

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