New package would add to support for social housing and give real estate market a further shot in the arm.
The State Bank of Vietnam has submitted a plan to the government regarding a credit package of VND50,000 billion ($2.38 billion) to support the commercial housing segment.
Deputy Minister of Construction Nguyen Tran Nam announced the news at the National Scientific Conference entitled “Real Estate Business - Opportunities and Challenges in Recovering Impetus in the Market”, which took place in Ho Chi Minh City on January 30.
The credit package will be for the commercial housing segment only, with interest rates of 7 per cent for ten-year terms, which can be extended by five or ten years at a reasonable interest rate.
Mr. Nam told the gathering that the real estate market is gradually recovering, with many successful transactions being made, and that real estate inventories have fallen 50 per cent. Bank lending for real estate purchases has increased to VND300 trillion ($19.1 billion), exceeding the previous high of VND280 trillion ($13.3 billion) in 2008.
The latest report from the Ministry of Construction showed that disbursement in the social housing package worth VND30,000 billion ($1.41 billion) is double compared with the first six months of 2014, due to amendments to the government’s Resolution No. 02, which extended those able to access the package and adjusted loan terms. Together with this package, experts believe the new package supporting commercial housing will boost the development of Vietnam’s real estate market in 2015.