PV GAS Tower in HCM City is among many mortgaged real estate assets that banks offer to sell to recover debts (Photo: pots.com.vn) Hanoi (VNS/VNA) - Many banks have recently offered to sell mortgagedassets, mainly real estate, worth billions of VND, to recover debtsamid the recovery of the realty market.
Vietcombankhas just announced the sale of many properties as collateral to recover debtsworth nearly 1.2 trillion VND. The assets include more than 70,000sq.m ofindustrial park land and factories attached to the land in the Vietnam-Singapore2 and VSIP industrial parks in Binh Duong province.
Theyalso include assets equal to 20 percent of PV GAS Tower in Ho Chi MinhCity. The 15-floor tower covers an area of 7,441sq.m. The bank announced thestarting price for the properties at more than 423 billion VND.
Similarly,VietinBank has just announced the sale of the right to use more than 8,000sq.m ofland and attached assets in Soc Trang and Bac Lieu to recover debts of My HungCo., Ltd.
Previously,in November, VietinBank also offered to sell nearly 50,000sq.m of land forperennial crops in Dong Nai province. The bank set the starting price for thereal estate, which is collateral for the loan of the Industrial ConstructionJoint Stock Company, at nearly 100 billion VND.
Agribankis offering land use rights of more than 2,000sq.m in Thu Duc city at astarting price of 58 billion VND. This is the collateral for loans of Phu CuongConstruction Design Trading Service Co., Ltd.
InDecember, Agribank also auctioned some real estate in HCM City’s District 1with a starting price of 20-25 billion VND.
BIDVis also selling land lots in cities of Thu Duc, HCM City and Hanoi, andNinh Binh province.
Accordingto experts, banks have pushed up the sale of mortgaged real estate to recoverdebts in the context of rising bad debts due to the negative impacts of theCOVID-19 pandemic while having favourable conditions thanks to the recovery ofthe real estate market.
Accordingto data from the State Bank of Vietnam, the banks’ bad debt ratio by the end ofJune 2021 was 1.73 percent against 1.69 percent at the end of 2020. Meanwhile,most of the collateral for bank loans is real estate. In the group ofState-owned banks, real estate usually accounts for 70-90 percent of totalcollateral.
Meanwhile,the recovery of the real estate market is helping banks to sell collateral.
Asurvey conducted by property consultant Savills Vietnam revealed that realestate value has increased by 30-40 percent in most residential segments thisyear. In Vietnam, residential real estate is still tending to increase in manyareas, especially big cities and provinces despite the pandemic.
Accordingto Savills Vietnam’s experts, with an average gross domestic product growthrate of 6-7 percent, Vietnam is evaluated as an ideal destination forinvestment, compared to other countries in the region, particularlyin real estate. There are many investment opportunities for individualinvestors when participating in this market in 2022./.
VNA
