Central Bank reports US$64.82 billion poured into real estate

SGGP
Credit poured into real estate sector reached VND1,500 quadrillion (US$64.82 billion) during the first eight months of 2019, increasing nearly 14.6 percent compared to the number at the end of 2018 and accounting for 19 percent outstanding loans of the economy, reported the State Bank of Vietnam (SBV).

(Illustrative photo: SGGP)

(Illustrative photo: SGGP)

Credit growth of the economy was 8.5 percent, lower that in the real estate sector. Therefore, SBV will continue tightening credit in potential risk areas such as real estate and securities.
In HCMC, reports by the city branch of SBV show that in the first nine months of the year, credit growth reached 10.2 percent compared to last year end to hit VND2,236 quadrillion ($96.68 billion). Of these, credit into real estate was trending down. However it still increased 3.41 percent over the end of 2018 to touch VND269 trillion making up 12.3 percent of total outstanding loans.
Meantime, outstanding loans for house building, repair and purchase in the city approximated VND128 trillion ($5.53 billion) accounting for 40 percent of total consumer loans. A large number of this might be invested in real estate.

By Minh Huy – Translated by Ngoc Thanh

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