Real Estate Market in Good Response to Low Interest Rates

In a difficult situation, QI witnessed large fluctuations in realty prices. Representative of Tan Phat Real Estate located on Hoang Dao Thuy Street said that a lot of projects in Hanoi recently cut prices with a view to drawing interest from customers.

 

The story is now different. Since May 28, 2012, opportunities have been opened for customers with demand for housing since deposit interest rates are reduced to 11 percent per annum.

 

The market also greets some commercial banks offering credit packages with competitive interest rates aimed at borrowers from real estate sector. For instance, VIB has started implementing its credit package of VND1,000 billion; Vietcombank launches its credit package with the interest rate of 14 percent per year only for consumption or real estate purchase, and BIDV has committed with the Ministry of Construction to allocate VND2,000 billion to the middle-income housing segment.

 

With a series of announcements and commitments from banks, customers have started to eye projects having favourable location and good implementation progress. Mr Nguyen Anh Dung, who has just bought an apartment in Golden Land project (Hanoi), says that this year is an appropriate time to purchase houses since prices are very close to true value. After five months of waiting, observing that prices have not continued to drop and opportunities to borrow from banks are available, his family decided to buy this apartment.

 

Mr Do Huu Hau, General Director of Hung Viet Trade JSC which is the owner of Golden Land project, stated that they had successfully negotiated with banks to offer maximum credit (up to 70 percent of the apartment’s value and 15 years to return loans) to customers wishing to purchase apartments of their project. Mr Hau also shared that in the following week, their customers would be supported with interest rates if they borrowed from banks. 

 

This means that customers can select the bank they like. Besides, they can purchase houses at prices which are much lower than those publicly quoted.