Ho Chi Minh City Real Estate Association (HoREA) has just sent a document to the Prime Minister and the State Bank, proposing to consider amending and supplementing Clause 1, Article 1 of Circular 22/2023 (amending and supplementing Clause 11, Article 2 of Circular 41/2016).

Accordingly, Circular 22, effective from July 1, stipulates that for loans secured by real estate for individuals to buy houses, including commercial houses, commercial banks and foreign bank branches are only allowed to lend to individuals to buy houses that have been completed and handed over, i.e. available houses.

Thus, Circular No. 22 does not allow banks to lend to individuals to buy unfinished commercial housing for handover (i.e. commercial housing formed in the future) secured (mortgaged) by that house itself.

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Individuals who want to borrow credit to buy future commercial housing will have to take other security measures or secure with other assets.

Mr. Le Hoang Chau, Chairman of HoREA, said that if this regulation is not amended immediately, it could lead to bad consequences, causing difficulties and hindering the normal operation of the real estate market. From there, it will negatively impact the recovery and development process of the real estate market both in the short term and in the long term.

Further analysis, Mr. Chau said that individuals buying future commercial housing and mortgaging future commercial housing is a legal civil transaction according to the provisions of the 2015 Civil Code.

Specifically, the collateral can be existing assets or assets formed in the future. Therefore, commercial housing formed in the future can be used as collateral. Therefore, the above regulation is not suitable, consistent, or consistent with the provisions of the 2015 Civil Code.

At the same time, the regulation is also inconsistent, not consistent, and not consistent with the provisions of the Housing Law 2014, Housing Law 2023, and the Real Estate Business Law 2014, Real Estate Business Law 2023, Investment Law 2020, and Law on Credit Institutions 2024.

Therefore, the Association proposes to amend and supplement Clause 11, Article 2 of Circular No. 41 (amended and supplemented in Clause 1, Article 1 of Circular 22) in the direction of adding regulations allowing credit institutions to lend credit to individuals to buy future commercial housing secured (mortgaged) by that house.

This regulation applies to both cases of purchasing commercial housing or purchasing social housing that has been completed for handover under a house sale and purchase contract (“available” housing) or purchasing commercial housing or purchasing social housing formed in the future secured (mortgaged) by that very house.

HoREA suggests real estate businesses reduce housing prices According to the Ho Chi Minh City Real Estate Association (HoREA), many investors have reduced the prices of high-end apartments through discount and promotion policies, but not significantly, housing prices are still 'stuck' high. HoREA suggests real estate businesses reduce housing prices according to the Prime Minister's opinion.