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Green light turns on, real estate credit does not increase
Real estate developers complain that they cannot arrange capital to implement their projects. Meanwhile, bankers complain that though the regulations on lending to the real estate sector have been loosened, they cannot find reliable clients to lend to.
Real estate developers half dead with thirst for capital
The State Bank of Vietnam has released the decision on excluding four groups of subjects out of the list of non-production sector, which is believed to lead to the increase in the real estate credit. However, the real estate market has not benefited from the move.
Nguyen Do Viet, Deputy General Director of the Song Da-Thang Long Joint Stock Company, said that the decision is valid only to the real estate projects which complete prior to January 1, 2012, therefore, only a few projects can meet the requirement.
Therefore, with the policy, analysts say this would happen that those who do not need capital, will be able to borrow money; while those who are really thirsty for capital cannot meet the requirement to borrow money.
Chair of the HCM City Real Estate Association Le Hoang Chau also said that he believes that the number of real estate projects which can be completed prior to January 1, 2012, would very so few that the number of them can be counted on fingers.
A manager of a well known real estate firm has revealed that the firm is developing an apartment project in Ha Dong town, and only 7 out of the 25 stories of the building have been completed. The firm initially planned to mobilize capital from buyers themselves by selling the apartments… on paper. However, the plan failed completely, because it could sell only 15 apartments in the last six months, which could not gather enough money to fulfill the project. Only 120 billion dong could be mobilized from the public, while the project needs 500 billion dong.
The businessman said that he has asked the contractor of the project for the delay of payment, while the firm is still owing 18 billion dong in the land use right tax. This means that the firm is seriously lacking capital, and he still cannot find the way out. Of course, he well understands that he cannot seek capital from banks.
“Not only our firm, but all other real estate firms in Hanoi are facing the same situation. It is very difficult to sell apartments now,” he said.
Deputy General Director of the General Taxation Department Cao Anh Tuan has confirmed that real estate enterprises are really in big difficulties. A lot of enterprises still have not paid the land use right tax, partially because they cannot sell products to pay tax and pay bank debts.
It’s not easy to lend say bankers
While real estate developers complain that they cannot find capital for their projects, bankers say they cannot find reliable developers to lend, though they have profuse capital.
After the Decision 8844 was released, banks have resumed providing consumer credit. An Binh Bank, for example, has launched a program, under which it provides capital to individual clients who need money to buy houses or repair houses.
Ocean Bank has also launched a program on funding house purchases with the preferential interest rate of 19 percent per annum. However, bankers say they need to be choosy when selecting clients to lend
A manager of Ocean Bank said the bank now has 47 trillion dong worth of capital and good liquidity. However, the bank only dares to lend the projects with high feasibility and experienced investor
vietnamnet
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