In the first 6 months of 2017, real estate credit increased sharply, the number of real estate firms established in Ho Chi Minh City was very high. This is one of the contents reported to the HCMC Real Estate Association. Ho Chi Minh has just announced.
According to the HCM City Real Estate Association (HoREA), in the first 6 months of 2017, real estate credit grew at 6.35%. This is a very high growth, compared with the same period last year 2016, with a growth of only 5%.
Although credit growth is high, interest rates are quite stable and quite reasonable, in which the interest rates for social housing remained at 4.8%.
In the first six months, Ho Chi Minh City has mobilized about 1.8 trillion dong, up 4.5 percent from the end of 2016. Credit outstanding reached 1.6 trillion, up about 10% And credit growth rate higher than the growth rate of capital mobilization. However, real estate loans in the area are not very volatile, always account for about 10% of total outstanding loans.
Accordingly, in the first 6 months of 2017, there are 18,000 enterprises established in the area, one third of which are real estate enterprises.
There are many new real estate businesses that show that the real estate market attracts the attention of investors and social entrepreneurs.
Relating to the movement of the real estate market in the first month of 2017, HoREA said that the market is fluctuating positively. According to the proportion of affordable (mid and low) flats in Ho Chi Minh City, 68.7% of total flats were sold in the first six months.
Remarkably, while the average housing in Ho Chi Minh City tends to increase rapidly, with a 1.9 times increase over the same period in 2016, the average occupancy rate is declining. Of HoREA, many large enterprises specializing in medium-sized housing development, but in the first 6 months, these enterprises do not supply any products to the market.
Although Ho Chi Minh City’s real estate market has been on a stable trend, HoREA’s valuation still has a number of “bottlenecks” to deal with.
These “congestion” in the past, HoREA repeatedly made recommendations to remove to many levels of government. However, to date, the majority of “congestion” still exists and hinders the development of the real estate market.