THE REAL ESTATE MARKET WELCOMES GOOD NEWS

The real estate market is expected to be "warm" again after a series of positive news such as a signal of a reduction in home loan interest rates when the deposit interest rates fell, the newly issued Decree 08 allowing the exchange of bonds. property voucher.

Signal to reduce the lending interest rate

Previously, at the regular Government meeting in February 2023, the Prime Minister directed the State Bank to regulate interest rates reasonably, in line with inflation control. The interest rate cut according to the Prime Minister needs to be done substantively.

The information recorded from the State Bank, in February 2023, interest rates were stable and interest rates in the market tended to decrease. The average new lending interest rate has decreased by about 0.4 %/year (compared to the end of 2022) and 22 commercial banks have reduced the average lending interest rate.

Up to now, many banks have updated the new savings interest rate schedule with a reduction of 0.1 - 0.6 percentage points compared to the previous one. Specifically, 3 out of 4 state-owned banks, namely Vietcombank, VietinBank, and Agribank, have lowered the interest rate at the counter with terms over 12 months to 7.2 %/year.

Other private banks such as Sacombank, ACB, LienVietPostBank, Bac A Bank, VietCapitalBank, NamABank, BaoVietBank, and Saigonbank also reduced interest rates by 0.1-0.6% for most terms from 6 months or more.

The news that banks simultaneously reduced savings interest rates is a positive signal for the real estate market. This means that interest rates on real estate loans may level off or decrease. The reduction of interest rates on real estate loans is information that many investors expect.

Allows exchanging bonds for assets

Recently, the Government issued Decree No. 08/2023/ND-CP dated March 5, 2023, amending, supplementing, and suspending the effect of several articles in the Decrees regulating the offering and trading of securities. individual corporate bonds in the domestic market and offering corporate bonds to the international market (Decree 08).

This information has created a bright color for the real estate market when removing bottlenecks on bonds for real estate businesses. Notably, Decree 08 allows businesses and bondholders to agree to implement the "bargain" method. Exchange bonds (both principal and interest) for other assets such as apartments, townhouses, villas, land, shares, stocks, and valuable papers... according to the principle that enterprises must comply with the provisions of the law. civil and relevant laws.

Another new point of Decree 08 is that in the past, enterprises were not allowed to change the term of issued bonds, but the newly revised regulations allow extending the term of bonds by up to 2 years.

According to Ho Chi Minh City Real Estate Association (HoREA), the total value of real estate corporate bonds maturing in 2 years 2023 - 2024 is very large, about 230,000 billion VND. Which, is about 119,000 billion VND in 2023, and about 111,000 billion VND in 2024. Therefore, HoREA estimates that Decree 08 will have a very positive and effective impact on the handling of VND 119,000 billion of bonds due in 2023.

Package 120,000 billion VND with a preferential interest rate

On March 3, at the Governments regular press conference, Deputy Governor of the State Bank (SBV) Pham Thanh Ha said that the SBV will strictly follow the Governments direction to remove difficulties for the real estate market. movables. Specifically, a credit package of VND 120,000 billion with 4 state-owned commercial banks with low-interest rates of 1.5 - 2% compared to normal lending rates. In addition to a lower loan interest rate of about 1.5 - 2%, there may be additional incentives for land use fees or some other policies, to achieve the goal of building 1 million social houses in a short period. next.

Previously, the Ministry of Construction proposed to suspend the 110,000 billion VND package to focus on the 120,000 billion VND package proposed by the State Bank. Experts say that the VND 120,000 billion packages will be easy to implement and put into practice. This can be a "factor" to help break the ice in the real estate market.

The Law on Land (amended) is seeking comments

The draft Land Law (amended) is currently being widely consulted by experts, scientists, and the people. The previous problems of the Land Law 2013 that hurt the real estate market were discussed. Experts and scientists have made recommendations from practical issues to regulations that are creating contradictions and are no longer consistent with real market developments. The amendment and completion of the Land Law are expected to remove bottlenecks for the real estate market.