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Ho Chi Minh City
Tuesday, June 25, 2024

Outstanding real estate loans surge

The Saigon Times

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HCMC – Outstanding loans owed by real estate businesses had reached VND986.5 trillion as of August 31, up 27% against the same period last year.

A recent report from the Ministry of Construction, which used data from the State Bank of Vietnam (SBV), said that different segments of the real estate sector saw their outstanding loans soaring in August. These segments include housing development, office space, industrial park, restaurant and hotel, and home repair.

Housing development projects saw the most significant increase in outstanding loans in August. Their outstanding loans in August were nearly VND12,000 billion higher than in July.

But outstanding loans in certain projects related to resorts and ecotourism sites, and land acquisition fell by VND1,600 billion and VND500 billion, respectively.

Regarding corporate bonds issued by real estate firms, the Ministry of Finance reported that as of September 15, sales of real estate corporate bonds amounted to VND56,900 billion, or 46% of the total bonds issued.

In the year to August 31, 17 lots of bonds worth nearly VND16,500 billion had been issued to the public.

VND115,882 billion worth of bonds had been issued via 101 private placements, accounting for 87.6% of the total. Institutional investors bought 92% of the total bonds, while individual investors made up a mere 5.18%.

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