A transaction at a bank in the capital city. Banks are expected to continue to pour money into the industry.  — Photo tinnhanhchungkhoan.vn

He added that giving loans to real estate and the security sector was more risky than consumption or production loans. The indicators in the first two sectors were extremely sensitive to the economy, with frequent changes taking place. The State Bank of Viet Nam clarified that the risk rate in these sectors was 2.5 times higher than of normal loans.

"However, risks are often linked to high profits, making banks interested in such loans," he clarified.

Luc said that the rate of loans in the property sector was more than eight per cent, and the figure had fallen over the previous years.

The rate is expected to increase in the near future, as banks have clarified that the loans for house repair and leasing account for 40 per cent of their total debt balance in the real-estate sector, according to Luc.

In addition, the market is considered to influence other sectors. That's why banks will continue to pour money into the industry, as only a push from banks will improve the real estate sector.

Statistics from the central bank showed that by the end of 2013, the total debt balance in the property market was VND262 trillion (US$12.4 billion), accounting for eight per cent of the total debt balance.

By the end of September, the debt balance in the country's real-estate sector rose 11.5 per cent over the end of last year. Of this, loans for buying houses or for house repair work comprised the highest component with 26 per cent, followed by investment in the property sector with 17 per cent.

In the first nine months of the year, the apartment segment saw the best sales. About 6,800 apartments were sold in Ha Noi in the nine-month period, higher than the whole of last year. In HCM City, the prices of the primary segment rose by two to three per cent. As of the end of August, the property inventory was worth VND83 trillion ($3.9 billion), a 13 per cent fall against the corresponding period last year.

He added that the market had seen positive signs because of the improved economy and the VND30-trillion ($1.4 billion) credit package.

In addition, both investors and home buyers thought that it was the right time to buy a house. Some investors reduced the selling prices by 30 to 40 per cent with marketing strategies and by reducing the scale of the apartments.

Le Xuan Nghia, member of the National Advisory Council for Monetary Policy, said that property had been a potential sector for banks to promote their credit growth.

Credit inflows into the sector will be higher, especially in lending for apartment building projects, ongoing construction projects and houses in the capital's interior districts. — VNS