Many individuals have used their own money to buy homes, thus helpingprevent the local realty market from going bust, the Saigon Times Dailyreported.
The point was shared by former Deputy Minister ofNatural Resources and Environment Dang Hung Vo at an internationalseminar on property management and the role of financial institutions,co-organised by the Bank for Investment and Development of Vietnam(BIDV) and Japan’s Sumi Trust Bank in Hanoi on August 6.
“Realtyinventories are high and many investors are worried about this but theyhave not gone bankrupt. This is credited to individuals who have usedtheir own money to purchase the apartments of which they will takedelivery in the future,” the Daily quoted Vo as saying.
Vocited sources of administering agencies as saying that the value ofrealty inventories is some 100 trillion VND, excluding the moneyindividuals have deposited for the apartments which will go up athousing development projects.
Vo said the individual depositsare huge but there are no official statistics about this. He noted thatmany property firms have complained about the stagnant property marketbut up to 80 percent of listed realty companies have made profits.
CanVan Luc, director of a training institute under BIDV, disagreed withVo’s view, saying that bank loans account for 70 percent of the capitalfor the property market while the rest comes from households andindividuals; equity, shares and bonds issued by companies and realtyfunds.
Luc estimated bank loans for the property market at nearly262 trillion VND (some 12.5 billion USD), making up 8 percent of thetotal outstanding loans as of the end of last year.
Phan Duc Tu,General Director of BIDV, said bad debt of the property market peaked at240 trillion VND (11.5 billion USD) in May last year. However, it isnow under control and makes up a mere 4 percent of total outstandingloans.
Vu Van Phan, Deputy Head of the Housing and Real EstateMarket Management Department under the Ministry of Construction, saidthe property market has shown signs of recovery since the middle of lastyear.
There were more than 4,000 successful propertytransactions in Hanoi in the first half of this year, doubling thenumber in the same period last year.
Realty inventories havedropped to 83 trillion VND worth as of end-June, a 35.4 percent declineversus the first quarter of last year.
Phan said there will bemore positive factors for the property market, citing the draftamendments and supplements to the laws on housing and realty trading,and lax conditions for beneficiaries of the VND30-trillion low-cost homeloan programme and for foreigners to buy homes in Vietnam.
Vosaid housing prices in Vietnam are 15-fold higher than the averageannual income of Vietnamese workers compared to the 25 times higher thanthe average annual income of labourers as recently announced by theMinistry of Construction.-VNA
The point was shared by former Deputy Minister ofNatural Resources and Environment Dang Hung Vo at an internationalseminar on property management and the role of financial institutions,co-organised by the Bank for Investment and Development of Vietnam(BIDV) and Japan’s Sumi Trust Bank in Hanoi on August 6.
“Realtyinventories are high and many investors are worried about this but theyhave not gone bankrupt. This is credited to individuals who have usedtheir own money to purchase the apartments of which they will takedelivery in the future,” the Daily quoted Vo as saying.
Vocited sources of administering agencies as saying that the value ofrealty inventories is some 100 trillion VND, excluding the moneyindividuals have deposited for the apartments which will go up athousing development projects.
Vo said the individual depositsare huge but there are no official statistics about this. He noted thatmany property firms have complained about the stagnant property marketbut up to 80 percent of listed realty companies have made profits.
CanVan Luc, director of a training institute under BIDV, disagreed withVo’s view, saying that bank loans account for 70 percent of the capitalfor the property market while the rest comes from households andindividuals; equity, shares and bonds issued by companies and realtyfunds.
Luc estimated bank loans for the property market at nearly262 trillion VND (some 12.5 billion USD), making up 8 percent of thetotal outstanding loans as of the end of last year.
Phan Duc Tu,General Director of BIDV, said bad debt of the property market peaked at240 trillion VND (11.5 billion USD) in May last year. However, it isnow under control and makes up a mere 4 percent of total outstandingloans.
Vu Van Phan, Deputy Head of the Housing and Real EstateMarket Management Department under the Ministry of Construction, saidthe property market has shown signs of recovery since the middle of lastyear.
There were more than 4,000 successful propertytransactions in Hanoi in the first half of this year, doubling thenumber in the same period last year.
Realty inventories havedropped to 83 trillion VND worth as of end-June, a 35.4 percent declineversus the first quarter of last year.
Phan said there will bemore positive factors for the property market, citing the draftamendments and supplements to the laws on housing and realty trading,and lax conditions for beneficiaries of the VND30-trillion low-cost homeloan programme and for foreigners to buy homes in Vietnam.
Vosaid housing prices in Vietnam are 15-fold higher than the averageannual income of Vietnamese workers compared to the 25 times higher thanthe average annual income of labourers as recently announced by theMinistry of Construction.-VNA
