Real estate credit in HCM City on the rise

Real estate loans in Ho Chi Minh City rose 1.61% year-on-year in the first four months of 2024, according to the State Bank of Vietnam (SBV)’s Ho Chi Minh City branch.

The figure is higher than the city’s overall credit growth of 1.31% and accounts for 27% of the total outstanding loans.

Fast growth was observed in loans for industrial parks, export processing zones, real estate trading, and land use rights transfers. Loans for investment in industrial parks and export processing zones surged 9.3% compared to the end of 2023 to reach VND44.6 trillion ($1.75 billion).

However, loans for residential purposes, such as home purchases, construction and repairs, accounted for the highest proportion of 68% of total real estate outstanding credits.

The credit growth was attributed to measures to support and promote the market, according to Deputy Director of the SBV’s HCM City branch Nguyen Duc Lenh.

Particularly, credit policies and low interest rate have not only encouraged businesses and people to get loans in real estate but also promote investment in expanding and developing infrastructure for industrial parks, export processing zones, and tourism services.

These policies have also stimulated consumption and business, thus contributing to boost market improvement and growth, he said.