Need a roadmap to tighten real estate credit second or more

Illustration photo.

In order to control and curb the increase in real estate prices, the draft Resolution of the Ministry of Construction recommends that credit institutions only lend up to 50% of the purchase contract value for buyers of second homes and no more than 30% for third homes or more, except in the case of buying social housing. This lending tightening regulation is expected to curb the increase in housing prices. However, experts say that these credit tightening solutions need to have a roadmap to avoid negative impacts on the liquidity of the real estate market.

According to a recent survey report on the apartment market by DKRA Vietnam, the proportion of home buyers for investment purposes accounts for 70-80% of total transactions. Tightening credit for second home buyers may reduce real estate speculation, but on the other hand, it will also risk reducing market liquidity in the short term.

According to DKRA Vietnam, the real estate market has shown many positive signs of recovery; however, compared to 2019, supply and consumption are only 60%. Therefore, tightening credit, if any, needs to be implemented step by step carefully to avoid impacts on the market recovery.

Mr. Vo Hong Thang - Deputy General Director of Investment, DKRA Vietnam Company said: "If the draft is correct, our assessment predicts that market demand will suddenly decrease by at least 30% compared to present."

Accordingly, the roadmap for implementing price control measures needs to go hand in hand with solutions to remove legal bottlenecks, increase the supply of affordable housing, ensure supply and demand balance for the housing market... to help young people and first-home buyers have the opportunity to access housing.

"There needs to be a roadmap to ensure balanced supply for the real estate market in accordance with the needs of each segment and each locality," said Ms. Nguyen Thi Thanh Huong - Vice President of the Vietnam Real Estate Brokers Association.

In addition, tightening credit for second and third homes... is only effective when a transparent information data system for the housing and land market is built. This is a very important legal foundation, so that relevant parties such as land management agencies, tax, notary, banking system... have enough information data to correctly assess the real estate speculation situation, to make accurate and appropriate decisions.

According to Mr. Tran Minh Hai - Director of Basico Law Firm: "When all information is clear and transparent, compared to individuals, then to the nature and level of speculation, the policies we put forth will be much more appropriate. And at that time, those who implement them, such as banks, will have a clear basis for compliance, without incurring costs, and without creating concerns about responsibility."

Policies aimed at combating real estate speculation, if adopted, would have the immediate effect of reducing the incentive for speculation - a positive thing for market stability. However, comprehensive studies on the level of impact on many stakeholders are needed to have a suitable implementation roadmap.

Source: https://vtv.vn/can-lo-trinh-siet-tin-dung-bat-dong-san-thu-hai-tro-len-100251022100513106.htm