Credit easing and capital injection for slowing or inactive real estate projects in Vietnam are much expected by developers. But, how to avoid breaking the market structure and triggering a price war is a tough puzzle for investors. There are still many reasons for investors to worry about the future.
Mr Nguyen Do Viet, Deputy General Director of Song Da - Thang Long Joint Stock Company, said: Authorities should not grant new construction permits in the next three years while troubleshooting a lot of problems for the market to recover soon.
“Now, banks should ease borrowing conditions for homebuyers because they are the real force to drive the market. If we are borrowed to develop our projects, we however do not know who we will sell to,” he said.
It is not advisable to borrow interest-bearing money to develop a project when there is no demand. And, if developers are not lent, they will also die. Hence, banks should lend buyers first to generate the real demand to revitalise the construction market.
The best solution is to create an interconnection of developers, banks and customers. Banks lend buyers with their own money who will purchase houses and form contracts with developers. And, when the banks see contracts between buyers and developers, they will pump money for their projects. In my opinion, by doing this, the real estate market will develop sustainably.
Mr Nguyen Tuan Viet, General Director of WikiNHADAT Real Estate Joint Stock Company, said the easing of credit for real estate is good for the lacklustre market. Companies will have wider access to capital sources to live through difficulties. However, it will be a danger if they borrow without a double thinking for the use.
Since its incorporation, WikiNHADAT has a lot of plans to develop an online property transaction system. Hence, we also thought of borrowing money from banks. However, our online real estate business project,
www.wikinhadat.com, is a bit strange to banks because it remains quite new to even the world, let alone Vietnam. So, I am not sure whether I can persuade the banks. Besides, the use of the money must be very careful because we may pay a dear price for a wrong decision., is a bit strange to banks because it remains quite new to even the world, let alone Vietnam. So, I am not sure whether I can persuade the banks. Besides, the use of the money must be very careful because we may pay a dear price for a wrong decision.
Mr Nguyen Tu Quang, an official from Hanoi Housing Trading and Development Company, said loosened credit policy is very good. However, the borrowing is quite sensitive because some companies will need very much but they cannot reach capital sources while some others do not need although they have enough conditions.
A bank loan has a strong impact on the whole business process of a company like project development, construction and sales. If the information about the loan for a half or entire project is leaked, the trust in the company will be weakened, given the current context.
He said the housing market will have a positive effect in the short term because the credit easing will stimulate end-user homebuyers. Affordable housing projects will also be benefited as the demand for this kind of accommodation is now very high.
However, this is possible a light does of medicine for the market because this is enough to ease the market sentiment and affect a small group of buyers.
Nguyen Hieu
Vietnamese
