HANOI: There is a concern about risks that can arise as real estate credit has increased sharply in recent years, particularly by the end of September, when the real estate credit growth was higher than the general credit growth of the entire economy.
In a recent meeting of the National Assembly, State Bank of Vietnam (SBV)’s governor Nguyen Thi Hong said real estate loans by the end of September this year were 3.15 quadrillion dong, up 9.15% compared to the end of last year.
The rise was also 0.15% higher than the general credit growth rate of the entire economy.
Notably, real estate business credit by the end of September 2024 increased by 16%, while consumer real estate credit increased by only 4.6%.
This caused the proportion of real estate business credit to surge to 40%, while the proportion of real estate consumer credit to decline to 60%.
Nguyen Trai University financial expert Nguyen Quang Huy said the SBV has introduced many management policies to control credit flows into real estate.
However, real estate credit growth remained higher than the general credit growth of the entire economy.
Therefore, risk control will face many challenges.
Excessive growth in real estate credit will put pressure on the monetary and financial policies.
According to Huy, most of the products offered in the real estate market are in the high-end segment. — Viet Nam News/ANN
