Low interest rates, many people are still concerned about floating interest rates after incentives
According to the report of the Vietnam Association of Realtors (VARs), in the first quarter of 2024, the Vietnamese real estate market tends to recover in both supply and demand.
Specifically, after 4 times of interest rate reduction by the State Bank, since the end of last year, banks have begun to promote capital disbursement for real estate projects in the context of decreasing bank interest rates and unfavorable corporate bond mobilization channels.
Home interest rates lowest in 20 years. (Photo: ST)
Meanwhile, other capital mobilization channels are not yet developed. Access to credit capital helps developers speed up project implementation progress, boosting supply to the market.
VARs' research data shows that 70% of investors with products eligible for sale are ready to launch. Right from the end of the first quarter of 2024, investors began to activate the implementation of a series of projects, groundbreaking activities, kick-off events, "renewing old products" took place vigorously with increasingly large scale. Some projects with good implementation progress have officially received deposits.
Statistics also show that in the quarter, the housing segment received about 20,541 products offered for sale, including more than 4,300 products from completely new projects.
Transactions in the housing segment continued to grow, with 6,200 transactions, up 8% compared to the fourth quarter of 2023 and double the same period in 2023. The apartment segment alone recorded more than 3,000 new units with an absorption rate of 57%.
The fact that lending interest rates have dropped to their lowest level in 20 years as the economy enters a recovery phase is not only an opportunity for businesses to develop projects, but also opens the door for people to borrow to buy houses. However, many people are still concerned about the floating interest rate after the incentive.
However, compared to last year, the average floating mortgage rate is now around 9-11%, down from a peak of 13-15% per year.
In addition, many banks have coordinated with investors to launch policies with a commitment to a maximum interest rate ceiling, so home buyers will avoid "risks" related to interest rates.
Up to now, credit institutions mostly encourage home loans - loans with low risk and clear collateral terms.
Lending interest rates are remaining stable, including home loan interest rates, with loan terms of 25-30 years, reducing the monthly repayment pressure for borrowers.
Besides, banks are still actively saving costs to reduce interest rates in accordance with the direction of the State Bank.
Mr. Nguyen Van Dinh, Chairman of VARs, said that the delayed impact of the policy is due to the outstanding credit balance mainly being in medium and long-term loans and the management measures of the State Bank. It is expected that the lending interest rate level will continue to decrease in the coming time.
Investors return to the market
Regarding investment needs, after a long time of carefully observing every move and development of the market, customers and investors have begun to clearly show their interest in the real estate market again.
Many people are still concerned about the floating interest rate after the promotion. (Photo: ST)
However, the risk appetite of these entities has changed after lessons from previous periods. Customers and investors are now more hesitant, cautious, and calculating when investing.
“They are willing to spend time and money to check the legality and research, carefully evaluate the price and liquidity before deciding,” said Mr. Dinh.
In addition, real estate consumer credit continued to decline in the first quarter of 2024, reflecting buyers' caution.
Mr. Dinh said that this is an opportunity for customers and investors to make quick decisions, accept risks in the market to take advantage of cheap cash flow and good sales policies, but still have to ensure not to take advantage of too high financial leverage.
The results of a recent survey by VARs with members who are real estate brokers also show that, although they are more cautious in deciding to spend money, if the supply is reasonable, up to 70% of their customers and investors are willing to "put down money" to buy real estate in 2024.
“Customers carefully choose the segment and type of real estate before paying. Land and low-rise are the two segments that receive the most attention,” said Mr. Dinh.
Source: https://www.congluan.vn/lai-suat-mua-nha-thap-nhat-trong-20-nam-nhieu-nguoi-van-e-ngai-ve-muc-lai-suat-tha-noi-sau-uu-dai-post292622.html
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