In Đà Nẵng, the tightening of real estate loans is expected to bring positive results to the city’s real estate market.
As seen by many positive signs, the real estate market of Đà Nẵng City has overcome difficult times to attract more investors to the area. The increase of investment in the city has also raised investment capital in real estate. The draft amended Circular 36 on Investment will seize opportunities to capitalise on the real estate market.
"The real estate market has warmed up, but the risk of a real estate bubble has also increased. The tightening of bank loans and the increase in savings and remittances will help to balance the financial market. We also need to avoid a dependence on bank finances." - Vo Minh, Director, Da Nang Branch, State Bank of Vietnam.
According to the draft amended Circular 36, the changing of default risks on real estate business will not have any impact on policies for housing loans the government has been implementing. Rather, it will create better access for people with real housing needs over real estate investors.
"The tightening of bank loans has a positive impact on the real estate market and the overall economy of Vietnam. In the coming time, we will implement more projects in land concentration / consolidation?, infrastructure development, as well as complete current investment projects." - Tran Minh Thoa, Director, Minh Tran Real Estate Company, Da Nang City.
In general, the amended Circular 36 will limit real estate lending. In the short term, it will also slow down the rise of the real estate market. However, the trend is consistent with the current situation, and in the long term it will reduce the risk of a real estate bubble.
