3:30:39 PM | 17/9/2008
Lending for real estate sector in Ho Chi Minh City and Hanoi, Vietnam’s two biggest cities, decreased from VND110 trillion (US$6.7 billion) to about VND80.6 trillion (US$5 billion) at present, Vietnamnet reported.
Loans for property decreased sharply in HCM City, while increasing slightly in Hanoi in recently two months.
In HCM City, outstanding loans were estimated at VND57 trillion at the end of August, down 33.8 per cent from the beginning of this year. Property sector now accounts for 11 per cent of total loans for the economy, instead of 20 per cent at the early this year.
In Hanoi, outstanding loans for property totaled VND23.6 trillion as of August 31, accounting for nearly 10 per cent total loans for the economy in the city, up 0.36 per cent from July and up 1 per cent from June.
The two cities held 82 per cent of Vietnam’s total loans for property at the end of February, in which joint stock banks had the largest market share. However, banks stopped lending for property sector due to surging inflation, tight monetary policy, plunging real estate market and weak liquidity of banks.
Duong Nguyen Hung, general director of Techconvina, said the real estate market may warm up in mid 2009, then banks will resume lending property sector. (VietnamNet)
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