Dr. Le Xuan Nghia said that from now until 2021 there will be no signs of "collapse" of the real estate market. However, the predictions of the world financial experts, during the period 2021 - 2023 is an extremely sensitive period for both the financial market and the real estate market. Sharing at the Forum Overview of Vietnam's real estate and financial market recently, Dr. Le Xuan Nghia - former Vice Chairman of the National Supervision Committee said that the real estate market is still stable and there are no signs of concern about "bubble" or "collapse".
“Demand for real estate still increases with normal levels. At least from now until 2021, there will be no signs of the real estate market collapsing. There will be a huge shift in capital flows from the stock market, the gold market to the real estate market, but it may take until 2019 to begin, quickly, it will last until 2021, and slowly, until 2023".
"That means, the period from 2021 to 2023 the new real estate market peaked and there is a risk of bubbles, and now is not possible," Mr. Nghia said.
Dr. Le Xuan Nghia said that credit should not be controlled strictly on real estate, but should control total credit in general. From now until 2021, there will be no signs of "collapse" of the real estate market. However, the predictions of the world financial experts, during the period 2021 - 2023 is an extremely sensitive period for both the financial market and the real estate market.
"The upcoming orientation of the real estate market, short-term and medium-term may still be housing but the long-term prospect of tourism is very huge. The Government should focus resources to develop tourism infrastructure." - Dr. Le Xuan Nghia further analyzed.
From a management perspective, Mr. Nguyen Manh Khoi - Deputy Director of the Housing and Real Estate Market Management Department (Ministry of Construction) also said that the market is witnessing the trend of transferring investment from abroad into Vietnam. In the first quarter of 2019, Vietnam attracted 1.1 billion USD of foreign investment in real estate, up 36% over the same period last year. The money is pouring into 2 main areas: industrial real estate and M&A projects.
Mr. Khoi also mentioned that the Prime Minister recently assigned the Ministry of Finance to study a number of financial institutions such as Housing Savings Fund, Real Estate Investment Fund, Real Estate Trust Fund... this will help the Dynamic resources for the real estate market.
However, the State Bank is tightening credit in the real estate sector. Accordingly, the State Bank has just released a draft of the circular stipulating loans of commercial banks with home buyers, buying land with the amount of more than VND 3 billion according to the risk up to 150% (tightening credit for buying a home loan over 3 billion VND).
At the same time, the State Bank also limited short-term mobilized capital of commercial banks to lend into real estate in the medium and long term. Mr. Khoi said that this restriction of the State Bank will make businesses face with capital difficulties.
According to Minh Thu