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The signal of an interest rate cut is expected to help the real estate market to regain liquidity soon. From there create an impulse for the market to gradually recover and develop stable again.
Speaking at the Real Estate Lending Conference held at the State Bank of Vietnam, Mr. Nguyen Thanh Tung, general manager of Vietcombank: “Just before this meeting, general managers of commercial banks met and agreed to lower the deposit rate in order to lower interest rates on loans in general and interest rates on real estate in particular”.
Previously, the problem of high interest rates had a strong impact on the liquidity of the real estate market. As a result, information about interest rate cuts immediately attracted the attention of target groups in the market.
Mr. Nguyen Chi Thanh, Vice President of Vietnam Real Estate Brokers Association, said that we are now looking for ways to overcome difficulties for the real estate market. The first is the removal of credit sources, this is a very positive signal for the market.
“If interest rates are lowered, the market will certainly have certain impulses, first it will be stable, then it will recover and develop. However, whether it is possible to lower interest rates on real estate loans is no longer based on the actual situation,” said Mr. Thanh.
Mr. Nguyen The Diep, Vice President of Hanoi Real Estate Club, said the high interest rates of recent years have eroded the liquidity of the real estate market. When buyers need to consider the issue of income and expenses and not pay to buy. In addition, real estate companies are strongly affected by difficulties in the bond channel and have no access to credit due to interest rates.
“Home buyers all have a certain amount of money, the rest will use financial leverage. However, the high interest rate discourages buyers from taking out a loan. As a result, purchasing power dropped significantly, impacting businesses in terms of cash flow,” said Mr. Diep.
According to him, the real estate market will continue to thrive if interest rates are lowered along with the expansion of credit space. Because the demand in the market is still very good, especially in the affordable housing segment. However, with the social housing segment, there must be alignment in credit policy, which is preferable for both investors and home buyers with good interest rates.
“How active the market is depends on how much interest rates fall. That is, the more interest rates fall, the stronger the real estate market will recover. The fact that banks have indicated that they will lower interest rates is good news for the market. However, implementation depends on the stability of the economic situation and macro factors,” said Mr. Deep.
In fact, just after the Lunar New Year, savings rates at many banks have cooled. On the bank’s official website, there are no banks announcing a rate higher than 10%/year.
For example, SaigonBank has long maintained the highest deposit level in the market at 10.5% for a period of 12 months and lowered it to 9.5%. CBBank, OceanBank,… also adjusted the highest interest rate to 9.5%/year.
Earlier, in mid-December, the Banking Association met with member banks to advocate uniform application of the maximum deposit rate of 9.5%/year, including plus promotions to stabilize interest rates and safeguard system liquidity.
The move to cut deposit rates to lower lending rates is expected to help the real estate market to reactivate liquidity. From there, the market has the impetus to recover and develop.
@Cafe
