The next period of real estate bubble are appearing in VietNam?

"House prices are on the slopes again, speculators are returning to the market. Asset bubbles coming up very soon, "Mr Tony Diep - CEO at Indochina Capital said.

Recently, Financial and Economic Newspaper has an analysis of real estate market in Vietnam showed that the loans to homebuyers in Vietnam have been increased 22% in the first 8 months of 2015, compared with 9.4 % the same period of 2012. The real estate loans accounted about 8% of total loans at the commercial Banks.

According to the article, mainly the home loans are contributing to the recovery of real estate market as the sales have doubled this year. The revival of real estate is also driven by demographic factors when 60% of Vietnam's population under the age of 35 and are likely to migrate to the big cities.

The same opinion, mr Nirukt Sapru - CEO of Standard Chartered Bank in Vietnam, Cambodia and Laos, also confirm the banks estimated the mortgage market of Vietnam is growing at about 3 billion / year. The purchase house in Vietnam is easier than ever. The developers of real estate projects are building products with affordable prices to suitable for young couple and cooperation with banks to have more investment loans, support homebuyers.

Meanwhile, July 2015, after foreigners were allowed to buy house in Vietnam, it also helps market added 400 transactions from this customer.

According to account of Savills in September 2015, more than 25,000 apartments for sale in the primary market of HCMC, this figure will double by 2017. In Hanoi, there are nearly 25,000 apartments on the primary market and will increase to 28,000 apartments in the next year. Besides, the house sales in Hanoi has increased 80% in the last 11 months. And sales at HCMC increased 90%, according to government figures.

On the issue of price, according to the article, in the Third quarter, the apartment price in HCM City has increased 12% over the same period last year. This figure is 3% in Hanoi. According to the forecasts of economists, housing prices will continue to increase by 2% per quarter in 2016.

Parallel to the increasing price, the Bloomberg article also stressed that the mortgage lending is growing strongly, plus inventories are on the rise, are appearing more concerned about the credit risk and thereby increase the risk of causing the real estate bubble.

For example, mortgage loans in the banking HD Bank is accounting for about 40%, 3-fold increase compared 2012. Customer came the banks to mortgage loan are mostly young couples about 30 years old with annually income USD 12,000 - 15,000. According to forecasts, this situation the mortgage loans will be doubled in the next 3 years, reaching 5,000 billion.

According to Bloomberg, the experts was concerned that inventories are on the rise, it is making appear more concerned about credit risk and thereby increase the risk of causing the real estate bubble in Vietnam.


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