HCMC Property sector receives more remittances

HCMC Property sector receives more remittances

Since early of this year, Ho Chi Minh real estate market has been recovering thanks to more incoming remittances poured into the sector. 

According to Nguyen Hoang Minh, Deputy Director of State Bank of Vietnam – HCMC branch, in the first five months of this year, incoming remittances to the city increased by 18%, equivalent to US$1.7 billion compared to the same period last year. HCMC Property sector receives more remittances.

Reportedly, several sectors received increasing remittance inflows, especially property and production. With an increase of 0.9 percentage points, remittances to property made up 21.8% of the total.

In the end of March, outstanding loans for real estate sector reached VND115 trillion, equivalent to 12.6% of the total. Compared to 9.72% in the end of 2012, it was a notable change.

Credit for real estate sector has registered annual growth of over 10% since 2012. Now the sector has a bad debt ratio of nearly 2.6%.  HCMC Property sector receives more remittances.

Recently, HCMC has seen more credits going to project developers than individuals who need money for purchasing or repairing houses. In central districts, credits for property projects made up 23% of the total outstanding loans for the sector.  HCMC Property sector receives more remittances.

A report on HCMC’s socio-economic situation showed, total outstanding loans reached VND1,113 trillion in January – May period, an increase of 16.1% year-on-year and 4.3% over 2014 year end.

In addition, short-term loans made up 45.9% of the total outstanding loans, a 0.76 percentage-point decline over late 2014 while medium and long-term credits accounted for 54.1%, up 9 percentage points.

In term of Government’s VND30-trillion loan package for home buyers, in the first quarter of this year, local banks had pledged to lend over VND2.9 trillion to around 3,800 home buyers.

(Source: Saigontimes)