The latest report of the Ministry of Construction (MOC) about the real estate market in August cited statistics from the State Bank of Vietnam as showing that nearly VND1 quadrillion dong have been injected into the market.

Of this, outstanding loans to urban area and housing development projects reached VND266.248 trillion, an increase of VND12 trillion over July.

The figures were VND40.622 trillion (+VND700 billion) for office projects, VND56.571 trillion (+ VND4.7 trillion), for industrial zone development, VND64.211 trillion (+ VND900 billion), housing projects for lease VND132.165 trillion (+ VND4 trillion) and VNDVND310.099 trillion (+ VND600 billion) for real estate business.

Meanwhile, the loans to fund ecotourism and resort real estate projects decreased by VND1.6 trillion to VND53.86 trillion and to fund and use right purchases decreased by VND500 billion to VND62.701 trillion.

Regarding the real estate bond market, real estate firms had issued VND56.9 trillion worth of corporate bonds by September 15, which accounted for 46 percent of the total value of bonds issued.

According to the Vietnam Bond Market Association, 17 public issuance campaigns had been implemented as of August 31 with total value of VND16.476 trillion, or 12.4 percent of the total value of bonds issued. There were also 101 private issuance campaigns valued at VND115.882 trillion, or 87.6 percent. Of these, VND46.765 trillion had been issued by real estate firms, or 35.3 percent.

Regarding the FDI pumped into the real estate sector, the Ministry of Planning and Investment (MPI) reported that as of the third quarter, the total investment capital had reached VND20.21 billion, which included newly registered capital, additional investment capital and share purchases, an increase of 7.7 percent over the same period last year.

Foreign investors poured capital into 18 out 21 business fields, of which real estate received the second biggest investment capital, $1.94 billion, or 9.6 percent of total registered capital, equal to 55 percent of that of the same period last year.

The MOC’s report also showed the slow disbursement of the VND120 trillion preferential credit package. To date, 20 cities/provinces have announced the list of 52 projects meeting the requirements to get loans, totaling VND25.8 trillion.

Of this, 49 social housing projects need capital of VND24.6 trillion, while the other three are projects on upgrading and rebuilding old apartments, totaling VND1.23 trillion.

Disbursement has been made for some projects, worth VND83 billion out of the VND1.095 trillion worth of credit contracts signed.

SBV cited three reasons behind the slow disbursement, including the short supply of housing projects; unattractiveness of social housing projects; and unreasonable requirements  people who want to buy these products.

Hong Khanh