“Real Estate Credit Continues to Grow Positively”

"As 2024 commenced, the market witnessed a rebound, coupled with declining interest rates. This prompted banks to actively extend real estate loans, particularly for projects with sound legal foundations. "

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The amended Law on Credit Institutions is expected to positively impact the real estate market, as the industry’s credit balance is high.

Illustration photo: KT

As of the end of the second quarter of 2024, real estate loans outstanding reached VND 3,083 million billion, up 6.8% from the beginning of the year, accounting for 21.4% of the total outstanding credit of the economy. Real estate is an attractive field for bank lending due to high and stable demand, along with strong collateral, helping to reduce bad debt risk.

Capital flow regulation is crucial to stabilize and restore the real estate market. The Law on Credit Institutions stipulates regulations to tightly manage real estate credit activities, ensuring alignment between asset mortgage acceptance and handling bad debts in real estate projects. The Law’s changes are consistent with the goal of promoting the safe, healthy, and sustainable development of the real estate market.

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