The pick-up of the property market has triggered bubble fears, but Statemanagement agencies said the market would be closely watched to preventit from happening again.
Construction Minister TrinhDinh Dung recently said the market recovery, reflected in the risingnumber of successful transactions and soaring prices, was not the resultof speculation.
The ministry's report said there wereabout 14,000 transactions in the first half of this year, more thandouble the figure of the same period last year.
He saidthe recovery was thanks to the Government's measures for tacklingproblems in the property market, together with the housing developmentstrategy implemented in the years after the market crash in 2008.
However, he said speculation would be unavoidable during the recoveryperiod, and that "it is important to tighten management to preventoverheated growth that would create a property bubble".
Preventingspeculation required the joint efforts of relevant ministries andorganisations, especially the banking sector's tight control over thecredit flow into the property market, said the minister.
Lookingback at the 2006-07 period, when easier credit was one of the factorsthat fuelled the property bubble, resulting in huge non-performing debtsin the real estate sector when the bubble burst, experts said banksshould tighten control over outstanding loan growth in this sector.
TranDu Lich, a member of the National Monetary and Financial PolicyAdvisory Council, said the rising capital flow into the property marketis a good sign.
However, banks must control the growth ofoutstanding loans in the real estate sector to avoid risks, he said,adding that banks should select good projects to provide loans.
Theproperty sector has received increasing capital flows from banks,foreign direct investment (FDI) and overseas remittances from thebeginning of this year.
Statistics of the State Bank ofVietnam showed that as of the end of May, credit growth in the propertysector was 10.89 percent, nearly double the overall credit growth of theeconomy.
According to the Foreign Investment Agency underthe Ministry of Planning and Investment, the property sector rankedsecond in attracting FDI in the first half of the year with a total ofmore than 465 million USD, accounting for 8.5 percent of the country'sFDI.
The capital flow into the property sector is expectedto rise as the central bank recently agreed to increase the creditgrowth targets for several commercial banks.
However, tight supervision of loans given to sectors with high risks such as the real estate sector is required.
NguyenVan Duc, deputy director of Dat Lanh Real Estate Company, said it isimportant that the right money goes to the right places.
Thecentral bank at its press conference last month said the loans weremainly channelled into construction and completion of works, adding thatit would continue to monitor credit flow into the real estate sector.
Atthe Government meeting in April, the Prime Minister said activemeasures should be taken to ensure healthy and sustainable developmentof the property market, together with preventing the return of a marketbubble.-VNA
Construction Minister TrinhDinh Dung recently said the market recovery, reflected in the risingnumber of successful transactions and soaring prices, was not the resultof speculation.
The ministry's report said there wereabout 14,000 transactions in the first half of this year, more thandouble the figure of the same period last year.
He saidthe recovery was thanks to the Government's measures for tacklingproblems in the property market, together with the housing developmentstrategy implemented in the years after the market crash in 2008.
However, he said speculation would be unavoidable during the recoveryperiod, and that "it is important to tighten management to preventoverheated growth that would create a property bubble".
Preventingspeculation required the joint efforts of relevant ministries andorganisations, especially the banking sector's tight control over thecredit flow into the property market, said the minister.
Lookingback at the 2006-07 period, when easier credit was one of the factorsthat fuelled the property bubble, resulting in huge non-performing debtsin the real estate sector when the bubble burst, experts said banksshould tighten control over outstanding loan growth in this sector.
TranDu Lich, a member of the National Monetary and Financial PolicyAdvisory Council, said the rising capital flow into the property marketis a good sign.
However, banks must control the growth ofoutstanding loans in the real estate sector to avoid risks, he said,adding that banks should select good projects to provide loans.
Theproperty sector has received increasing capital flows from banks,foreign direct investment (FDI) and overseas remittances from thebeginning of this year.
Statistics of the State Bank ofVietnam showed that as of the end of May, credit growth in the propertysector was 10.89 percent, nearly double the overall credit growth of theeconomy.
According to the Foreign Investment Agency underthe Ministry of Planning and Investment, the property sector rankedsecond in attracting FDI in the first half of the year with a total ofmore than 465 million USD, accounting for 8.5 percent of the country'sFDI.
The capital flow into the property sector is expectedto rise as the central bank recently agreed to increase the creditgrowth targets for several commercial banks.
However, tight supervision of loans given to sectors with high risks such as the real estate sector is required.
NguyenVan Duc, deputy director of Dat Lanh Real Estate Company, said it isimportant that the right money goes to the right places.
Thecentral bank at its press conference last month said the loans weremainly channelled into construction and completion of works, adding thatit would continue to monitor credit flow into the real estate sector.
Atthe Government meeting in April, the Prime Minister said activemeasures should be taken to ensure healthy and sustainable developmentof the property market, together with preventing the return of a marketbubble.-VNA
