Real estate lending rises in Vietnam and Japan

In Vietnam, real estate credit reached 5.21 quadrillion VND by August 31, 2026, accounting for 25.39% of total national credit. While corporate bond issuances showed signs of recovery in the third quarter of 2026, capital mobilization remains concentrated among large-scale enterprises. Market challenges include legal hurdles regarding land allocation and planning, high capital costs, and declining market confidence. Experts note that while there is an oversupply of certain segments, there is a shortage of projects that are legally compliant and meet actual demand.

In Japan, real estate lending hit a record high, reaching over 120.7 trillion yen (approximately 760 billion USD) by the end of June 2026. This represents an 8% year-on-year increase, with real estate loans making up 18% of total bank credit. This ratio exceeds the levels seen during Japan's late 1980s bubble era, when the share was 10%. Regulators are concerned that local banks are increasingly lending to major urban projects, such as those in Tokyo, potentially triggering a new bubble. The Financial Services Agency has placed real estate lending under increased supervision to mitigate systemic financial risks.