Lenders in Ho Chi Minh City reported outstanding real estate loans of 1.09 quadrillion VND (42.7 billion USD) last year, up 12.3% year-on-year and making up 27.5% of total loans, according to data from the central bank.

Of this total, 66.6% were for home purchases, renovations, new construction, and land use rights for residential projects.

Loans for real estate businesses also grew significantly, with outstanding loans for industrial park infrastructure reaching 55 trillion VND (5% of total real estate credit), an increase of 34.8%.

Outstanding loans in the office building sector totaled 25.8 trillion VND (2.38% of the total), up 22.5% from the previous year, while loans for restaurants, hotels, and resorts reached 26.5 trillion VND (2.44% of total), a 31.7% increase.

Nguyen Duc Lenh, Deputy Director of the State Bank of Vietnam's (SBV) HCM City branch, noted significant growth in real estate lending for business and production in 2024, driven by an expanding tourism and investment sector.

"This trend is positive for the economy," he said.

He added it was essential to continue to address challenges in the real estate sector, such as simplifying project documentation and legal requirements.

Lenh also mentioned the role of preferential credit packages from commercial banks aimed at individuals under 35, which could further stimulate credit growth in the coming period.

The SBV reported that total outstanding real estate credit has, as of now, reached 3.48 quadrillion VND, up 590 trillion VND, or 20%, compared to the end of 2023.

Market recovery

Experts believe 2025 could be a crucial year for the city's real estate sector. After navigating the challenges brought on by the pandemic and economic downturn, a full recovery is anticipated by 2026.

While 2023 was undoubtedly a tough year for the market, signs of recovery are emerging.
Many projects are now resuming, developers are launching new initiatives, and investors are expressing renewed interest in the market.

According to the HCM City Real Estate Association (HoREA), the market faced negative growth throughout 2023, culminating in a 0.5% decline.

However, a notable upswing began in the second quarter of 2024, leading to overall growth of 9% for the year.

Despite these positive signs, Le Hoang Chau, Chairman of HoREA, cautioned that challenges remain, particularly concerning limited supply in the housing market, especially for affordable homes priced below 30 million VND per square metre, as well as in the social housing segment.

Experts stressed the importance of 2025 as the Government and relevant agencies work to resolve legal issues affecting projects and introduce more housing options to the market.

With an increase in supply, it is expected that home prices will gradually rise, making homeownership more attainable for a larger segment of the population, they added./.VNA