Vietnam Real Estate Credit Policy Changes in 2017

The real estate credit policy in Vietnam underwent significant adjustments in 2017 to better manage capital flow into the market and ensure sustainable and healthy development. This article analyzes these key changes and their impact on the market.

Tightening of Real Estate Lending Conditions

In 2017, the State Bank of Vietnam issued Circular 06/2017/TT-NHNN, imposing stricter regulations on real estate lending. Specifically, the ratio of short-term capital used for medium and long-term loans was reduced from 50% to 40%, while the risk coefficient for real estate loans was increased from 150% to 250%.

Tightened real estate lending conditions

These changes aimed to limit the practice of commercial banks using short-term capital for medium and long-term lending, thereby controlling credit risk and ensuring the safety of the system.

Enhanced Monitoring of Lending Activities

Besides tightening lending conditions, the 2017 real estate credit policy also focused on enhancing the monitoring of lending activities by credit institutions. The State Bank required commercial banks to regularly report on their real estate lending situation and intensified inspections to promptly detect and handle violations.

Support for Social Housing Development

Despite tightening credit in the real estate sector, the 2017 policy prioritized social housing. The government issued several supportive policies regarding interest rates, taxes, and land to encourage businesses to invest in this area, contributing to meeting the housing needs of low-income earners.

Support for social housing development

Impact on the Real Estate Market

The 2017 real estate credit policy significantly impacted the market. The tightening of credit helped cool down the market and limit speculation and price inflation. However, it also made it more difficult for businesses and homebuyers to access capital.

Conclusion

The 2017 real estate credit policy was a necessary step to control risks and promote sustainable development in the real estate market. Understanding these key changes will help investors, businesses, and homebuyers make informed decisions.

Frequently Asked Questions

1. What’s new in the 2017 real estate credit policy?
2. How do the changes in credit policy affect homebuyers?
3. What policies support loans for social housing?
4. How to access home loan capital in the context of credit tightening?
5. How is the real estate market expected to perform in the coming time?

Common Scenarios

Customer A wants to borrow money to buy a condominium.

• Question: Can you advise me on the current home loan policy?
• Answer: We can advise you on home loan packages that suit your financial situation.

Customer B wants to learn about the policy supporting social housing loans.

• Question: I would like to know more about the policy supporting social housing loans.
• Answer: We can provide you with detailed information on policies supporting social housing loans.

Related Articles:

• Learn more about anti-speculation policies in the US real estate market for an overview of real estate market control measures.
• Government’s start-up support policies are also a useful source of information for young people who want to start a business in the real estate sector.

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