HCMC – Prices of many commercial housing units have plunged 50% to around VND2 billion each. However, they remain unsalable due to buyers’ hesitation in taking out mortgages amid high lending rates.
Therefore, the HCMC Real Estate Association (HoREA) has written to the prime minister and the central bank asking them to remove hurdles for the housing market and offer homebuyers preferential credit packages.
In its letter, the association said companies in the industry were grateful for the central bank’s decision to boost liquidity in the economy with additional credit growth limits of 1.5-2 percentage points.
Still, taking out bank loans remains challenging for both homebuyers and sellers, as commercial banks have yet to lower their credit standards, and the new year is approaching.
In the absence of social homes, many property developers have slashed the prices of commercial apartments by 50% to around VND2 billion a unit. Despite that, it is still hard to make a sale as high-interest rates have demotivated buyers from applying for mortgages.
Besides, loans taken out under the preferential credit package with an interest rate discount of two percentage points amounted to VND21 trillion by the end of October, equivalent to 52.5% of the package value, while the remainder may not be tapped.
Based on those grounds, HOREA proposed the central bank and the prime minister allow enterprises to apply for secured loans, although their existing loans have been classified as debt and yet to be serviced.
It also asked them to allow companies to secure new loans with corporate bonds as collateral and revise Decree 31/2022/ND-CD in ways that support individuals buying houses valued under VND2 billion with an interest rate subsidy of two percentage points.