Cooling Vietnam’s Hot Property Market

• Proeksa Meas
• 27 August 2016
• Local News
• 1420 Views

Having experienced surging growth amid stagnation in other ASEAN markets, Vietnam’s property sector has had cooling measures imposed by a government nervous of the market overheating.

The State Bank of Vietnam announced that from 1 January 2017, commercial institutions will be allowed to use no more than 40 percent of short-term funds for mortgages and other real estate lending. Credit exposure risk for the real estate business is also to go up from 150 to 200 percent.

The bank’s measures are intended to deter a speculative property bubble given that the outstanding real estate loan balance has been growing at an annual rate of 10-15 percent, reaching a total of USD17.42 billion in 2015, according to Property Report.