What do you think about the recent move of banks to tighten real estate credit?
Regarding the policy, tightening real estate credit is to get rid of business people snatching, helping the market to purify investors is necessary to make the market more open, transparent and stable.
So credit tightening can be understood as the root solution to solve the negative of the market, sir?
This is not true. Real estate credit is only the tip, not the root of the problem. So where are the roots?
First of all, because the market supply is currently too scarce. In both Hanoi and Ho Chi Minh City during the past time, the number of licensed projects is so small that the quantity of goods pushed to the market is almost nonexistent. Meanwhile, the demand for real estate ownership in Vietnam is very large, because we are a developing country, the home ownership rate of people is still low, the average housing area is only about 23 m2, lower than the average. peace of the world. Rapid urbanization is also increasing demand for real estate. In addition, the problems of the real estate market are also in the price blowing, the lack of publicity and transparency, the planning stage, etc.
That said, if we only tighten credit to real estate, it can help reduce the amount of money entering the market, thereby reducing the snatching business of a part of investors. However, that is only the insignificant tip.
Assoc. Prof. Dr. Dinh Trong Thinh.
What do you think is the solution?
The problem is that we can’t do a mass squeeze, but only with projects with financial risks, investors who don’t meet the capacity to execute the work or the projects don’t promote efficiency, and speculators, traders, and investors. Business grabs contribute to push real estate prices in the market.
On the other hand, it must be clear that we cannot force borrowers to buy houses to live in, because that is the legitimate need of the people. On the contrary, when people have the need to buy a house but do not have enough money, they must be given the opportunity to borrow at a suitable interest rate for peace of mind to live and work hard. This not only creates stability in social security but also helps to ensure the maintenance of good economic status. Simply because when families are all towards development, society will grow.
After 2 years of slowing down of the real estate market in particular and the economy in general, we are facing an opportunity to recover. If credit capital is unreasonably tight as you say, how will it affect this opportunity?
If the real estate credit tightening is done inappropriately, the real estate market will surely slow down. The market will even be quiet. This is very worrisome because the real estate market has an extremely large role, having a strong impact on the development of the economy.
We should remember, behind real estate there are about 40 production and business lines. This is the blood vessel, one of the locomotives of the economy. Therefore, if real estate development is slow, there will be dozens of sectors being dragged behind, seriously affecting the post-Covid-19 economic recovery. Therefore, this is an issue that managers need to consider carefully.
What suggestions do you have to help real estate credit tightening come into practice and achieve the highest efficiency?
In the implementation, in my opinion can not do massively, rampant. For example, why tighten credit for resort real estate while tourism is reopening and lacks infrastructure? Therefore, depending on the locality and location, each profession needs to be tailored because there are places where there is a surplus, but there are places where there is a shortage of real estate for socio-economic development.
In addition, the massive tightening of real estate credit is also an equating of professional real estate developers with low-performing units, so there is no purification to healthy the market. Instead, it is necessary to encourage reputable and potential businesses to be the mainstay of the market; Purify weak businesses to protect consumers, reduce risks and risks to the credit system. At the same time, it is necessary to consider supporting those who really need capital to buy real estate to stabilize their lives.
Thus, the new real estate credit squeeze helps to both regulate credit activities but at the same time stimulate the development of necessary real estate segments, helping real estate contribute to the recovery process of the economy.
Thank you Sir!
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