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Sunday, October 2, 2022

SBV orders credit restrictions to curb property speculation in HCMC

By Dung Nguyen

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HCMC – Credit institutions in HCMC must limit credit for property purchases to combat speculation in the city, said the inspectorate of the State Bank of Vietnam’s (SBV) HCMC Branch.

The SBV HCMC Branch sent out this order following the directive of the prime minister on the issue to develop a stable and healthy property market in the southern hub.

Credit institutions have been asked to closely monitor credit for the real estate sector, and curb credit to those investing in premium properties, tourism and resort properties, and those hoarding properties. They have to also keep a close watch on activities of transferring money generated from real estate transactions to overseas accounts.

However, banks also have to be flexible in offering credit to meet the housing demand of local residents, the inspectorate said.

In the first quarter, a number of banks had to limit credit growth in the real estate sector, by suspending disbursements of credit, except for the provision of loans to State employees and those who wanted to buy, build, and repair homes for a living.

Speaking at recent shareholders’ general meetings, senior ranked officials of several banks said that they have been asked to tightly control credit for property purchases, but some banks affirmed that they will work to fully meet the home loan demand from local people.

According to data from SBV in HCMC, credit outstanding balance in the city, as of April this year, totaled over VND3,000 trillion, up around 7% against the end-2021 figure.

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