VTV.vn - Credit flows for real estate have widened, allowing the real estate market, which was grey at the beg...
VTV.vn - Credit flows for real estate have widened, allowing the real estate market, which was grey at the beginning of the year, to regain green hope.
Housing demand is gradually recovering
Earlier this week, savings interest rates continued to reach a new record high, at just 2.2% /yr for 1-2 month terms, 4.8% /yr for 12-24 month terms. Compared to the beginning of this year, interest rates on savings deposits have halved.
Alongside the sharp fall in interest rates on savings, a series of banks have lowered mortgage rates. Excluding preferential sales policies to support investors' loans, some banks have offered mortgage loan packages at less than 6% / year. We note that credit flows for real estate have relaxed, which allowed the real estate market, which was grey at the beginning of the year, to regain a green hope.
Many clients say that they constantly receive offers of real estate loans. The market has begun to regain the lively commercial atmosphere, especially in the segment of condominiums or houses that can be experienced immediately. According to experts, this is the result of a series of instructions from the government and the Prime Minister to eliminate difficulties and reduce the interest rates on loans so that the real estate market develops in a safe, healthy and sustainable way, since the beginning of the year.
As soon as interest rates on savings dropped to historically low levels, Mai and many other investors considered using unused money to buy real estate.
Real estate markets are very busy in the last month of this year. (Artwork - Photo: Investment Newspaper)
“When bank interest rates are very low as they are right now, I think buying and leasing condos is also a very good option,” said Doan Thi Tuyet Mai, an investor.
Real estate exchanges are very busy in the last month of this year. They said it was the mildest month for brokers in the last 2 years. The bank reduced interest rates to help successful closing transactions increase, mainly in the affordable housing segment, by 2 to 5 billion VND. As for the segments with high added value or serving tourism, resorts, remote lands..., the level of recovery is slower Interest rates are falling, cash flows for real estate are more abundant. According to observers, this recovery is flowing slowly but slowly, not massively, like the interest rate cuts many years ago.
Real estate companies expect to stabilize loan interest rates
It is clear that market developments have shown that when interest rates fall, this has partly stimulated higher real estate transactions. However, the supply of projects is limited, and the selling price is still high, so transactions are concentrated in segments with moderate selling prices, affordable prices.
Developers now need bank capital to build projects, thus improving supply. With the current sharp decline in interest rates on deposits, real estate companies expect interest rates to be further lowered. How do insiders, especially the bank, react to this proposal?
Businesses do not expect interest rates to apply next year. From a banking perspective, they also cannot calculate how future interest rates will fluctuate. As a result, the banks stated that it was difficult to set preferential borrowing levels throughout the borrowing cycle.
Alongside the sharp decline in savings interest rates, a series of banks have lowered mortgage rates. (Illustration - Image: Dan Tri)
Many real estate experts have said that mortgage interest rates are gradually approaching the most reasonable level for borrowers in recent years. The problem also lies in the selling price of the developers.
At the same time, the promoters indicated that they still face legal difficulties to proceed with the construction of new projects, improve supply, lower selling prices or facilitate bank lending procedures.
Thus, in addition to interest rate support, the difficult problem of the real estate market also lies in the policies, legal procedures and restructuring efforts of investors. These are the “bottlenecks” that are expected to be phased out in the first half of 2024.
Via VTV