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What Factors Will Create Momentum For The Property Market In 2018?

What factors will create momentum for the property market in 2018 to come here? Along with Vietnam real estate analysis of this issue, see the article below.

The first factor: Good economic growth

From 2010 up to now, there has been no strong economic growth in Vietnam in 2017. In particular, the GDP in the first quarter of 2017 increased 5.15%, the second quarter increased by 6.28% and the third quarter increased to 7. , 46%, helping to achieve the full-year target of 6.7%. The economy is growing steadily, people’s savings are high, this is the opportunity for the property market to receive a large amount of money poured in. Improvements in infrastructure and macroeconomic factors will continue to support the vibrant market.

The second factor: high credit growth

Credit growth is nearing its target of 21%. According to the National Financial Supervisory Commission, as of October 2017, credit is estimated to increase 13.5% compared with 2016, of which credit to real estate reached 15.5%. Bank liquidity was stable, indicating the interbank rates continued to decline, maintaining a stable interest rate will help credit growth at the end of the year reached the target of 21%. This means that there will be about VND600,000 billion injected into the economy, which accounts for a significant portion of the real estate. As the demand and supply phase of demand has declined, banks are encouraging more capital for individuals to buy houses in the middle and lower class, helping to control bad debts.

What factors will create momentum for the property market in 2018?
High credit growth is one of the factors promoting the development of the real estate market

The third factor: stable interest rate trend

Interest rates are currently stable and tend to decrease. The SBV adjusted down 0.25% / year for operating rates, down 0.5% for short-term loans. In addition, banks have lowered their medium and long-term lending interest rates to 8% per annum, deploying more short-term and medium-term credits for essential sectors of development. economically, applying short-term interest rates to customers at 4-5%.

Currently, the lending interest rates in the priority areas are 6-6.5% / year, the medium term from 8-10% / year. For normal business, interest rates are around 6.8-9% pa for short-term loans and 9.3-11%  for long-term loans.

Thus, interest rates are steadily declining. It is the interest rate factors that help the real estate market enjoy many advantages. Buyers, investors will also have more favorable conditions to access cheap capital from the bank, so that the property market in 2018 will continue to be actively supported for sustainable development.

>>>Update on new information on the real estate report in Vietnam here: Vietnam real estate report

Fourth element: Positive change from the market itself

What factors will create momentum for the property market in 2018?
The property market in Ho Chi Minh City and Hanoi are having positive changes

According to economic experts, now the property market itself is getting better. In particular, the biggest change is the restructuring of the product deployment. More and more large real estate firms are involved in the development of middle-income people. Professionalism in product development, focused on practical needs, design interests, utility and utility services surrounding the project help bring better products to buyers… In addition, the formation of satellite towns in Hanoi and Ho Chi Minh City also help create large urban areas with low and middle price, helping to reduce pressure on the central area.

An economist has compared the residential real estate market as a piece of bread is increasingly expanding. The speed of urbanization, the increase of regional connectivity and the independence of the real estate market into bank credit capital are helping to develop the real estate on a sustainable basis. It is estimated that Vietnam needs at least 370,000 apartments per year to meet housing demand. As a result, the pace of urban expansion and regional connectivity through infrastructure development is accelerating. Real estate is pushed out of the center and thrives in the coastal areas with improved transport infrastructure. In addition, the parliamentary easing of debt trading and asset disposal will ensure cash flow in the property market, thereby solving the problem of bank bad debt.

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What Factors Will Create Momentum For The Property Market In 2018?
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