(CLO) The Chairman of the Ho Chi Minh City Real Estate Association proposed that the Ministry of Construction consider developing a project to develop low-cost commercial housing and a mechanism to support young people buying their first home by borrowing credit at reasonable commercial interest rates for a period of at least 10-15 years.
At the recent meeting of the Central Strategy and Policy Committee, General Secretary To Lam directed that it is necessary to continue institutional reform, improve the investment and business environment, strive to reduce at least 30% of administrative procedure processing time, at least 30% of business costs, especially customs, legal compliance costs, informal costs, abolish at least 30% of unnecessary business conditions, and strive for Vietnam's investment environment to be in the top 3 of ASEAN within the next 2-3 years.
In particular, regarding land and real estate policies, the General Secretary directed that it is necessary to accelerate real estate transactions, attract capital into the market, promote urban areas to become the driving force of national growth with solutions such as completing a high-quality and synchronous infrastructure system for urban areas, building a national digital map system on planning and land prices, and establishing a "National Housing Fund" to develop low-cost housing in large cities.
HoREA proposed a mechanism for young people to buy houses with reasonable interest rates for 15 years. (Photo: ST)
Regarding this issue, Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association (HoREA) agreed with the direction of the General Secretary.
According to Mr. Chau, the real estate market in 2024 has overcome the most difficult period and entered the recovery phase, growing again but not really firmly.
Because, the recovery momentum of the real estate market has followed the trend of each month being better than the previous month, each quarter being better than the previous quarter, each year being better than the previous year, but the speed is quite slow and the housing market is still lacking in project supply, leading to a lack of supply of housing products.
The most worrying thing is that since 2020, the high-end housing segment has dominated the market, but there is a shortage of affordable commercial housing and especially social housing, leading to a situation where housing prices are constantly increasing and "high prices" beyond the financial capacity of the majority of people with average and low incomes in urban areas, workers, civil servants, state employees, and armed forces officers, making it increasingly difficult to create housing.
To promote the development of social housing and ensure social security in housing, Mr. Chau proposed that the Prime Minister assign the Ministry of Finance to coordinate with the Ministry of Construction and the State Bank to develop a "Project to establish a National Housing Development Fund".
This Project should include a “Pilot Project to Establish a Social Housing Development Fund” according to the previous direction of Prime Minister Pham Minh Chinh and Mr. Chau suggested that the Ministry of Construction consider developing a “Project to develop low-cost commercial housing and a mechanism to support young people buying their first home with credit loans at reasonable commercial interest rates for a period of at least 10-15 years”.
According to Mr. Chau, to successfully implement this, the response and participation of commercial banks depending on their resource capabilities is needed.
“I welcome the fact that some commercial banks, right after the meeting chaired by the Prime Minister with credit institutions on February 11, 2025, took the lead in announcing a 30-35 year long-term credit package for home buyers,” said Mr. Chau.
Specifically, ACB Bank announced a 30-year long-term credit package for young people buying their first home with a reasonable interest rate of only 5.5%/year in the first 5-year cycle, and borrowers are given a grace period for not paying the principal in the first year.
However, Mr. Chau suggested that ACB balance resources to be able to announce the interest rate calculation mechanism for the next 5-year cycle to reassure home buyers.
In addition, SHB Bank has just announced a credit package of 16,000 billion VND from now until December 31, 2025 to serve the need to buy a house with preferential interest rates from only 3.99%/year, customers can borrow up to 90% of the value of the house they intend to buy, with no limit on the loan amount.
Borrowers are granted a grace period for not paying principal for the first 05 months, the loan term is up to 35 years and the principal repayment schedule is designed specifically according to the borrower's financial capacity. Home loan customers can be flexible in choosing suitable collateral such as valuable papers, deposit balances, other owned real estate or cars.
Source: https://www.congluan.vn/de-nghi-co-co-che-cho-nguoi-tre-mua-nha-voi-lai-suat-hop-ly-trong-15-nam-post336463.html
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