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VietNamNews

Easier credit reignites dormant market

Update: June, 30/2012 - 08:57

 

Customers attend the seminar at the Gamuda city project in Ha Noi's Hoang Mai District. — VNA/VNS Photo
HA NOI — The domestic real estate market has shown signs of light recovery after the Government outlined solutions to stimulate sluggish activity.

Nguyen Tran Nam, deputy minister of Construction, said the central bank's recent decision to cut the ceiling deposit interest rate to 9 per cent from 11 would counteract stagnation.

The move would further assist people buying houses at reasonable prices. Instead of depositing idle money in banks, people have started seeking property projects in which to invest. As a result, developers have rushed to make their products available on the domestic market.

In addition, a series of solutions were approved by the Government to help property developers that include slashing 50 per cent off the annual land tax for 2012, payable by organisations and businesses leasing land from the State.

With such loose credit policies, many developers have started selling their products by offering preferential finance support.

For instance, investors in projects such as Golden Land in Nguyen Trai, Golden Palace in Me Tri or Nam Do Complex in Truong Dinh are offering preferential support packages on interest rates.

The Golden Land investor has also committed to supporting buyers with a 100 per cent banking interest rate while those of the Golden Palace cut retail prices to VND27 million (US$1,285) per sq.m from $2,200 while offering buyers 85 per cent of total housing value with an interest rate of 16 per cent per year.

Late last week, COMA 6 started to put nearly 600 apartments of its Dream Town Project on the market at a price of VND17.8 million ($847) per sq.m. On this occasion, purchasers will be lent 70 per cent of apartment values at an interest rate of 12 per cent per year, which they could pay by instalment within 10 years.

Also this month, Gamuda city project launched its Phase 1 with 72 units of the Gamuda Gardens-the landed property in Gamuda Gardens has price of $2,700 per sq.m.

Currently, the platform level had been completed for Phase 1 and Phase 2, said Dr Lim Phaik Leng.

He added that construction strictly followed safety and quality requirements.

Cheong Ho Kuan, general director of Gamuda Land Viet Nam, said his company committed to making a long-term investment in the country despite the property market going down. He noted that current challenges would do little to harm the project due to backing from their mother company in Malaysia.

Last week, Ha Noi Construction JSC (Hanco9) worked with Knight Frank Viet Nam to sell 324 apartments of the Berriver Long Bien project with prices ranging from VND23.5 million to VND26.5 million ($1,120-1,261) per sq.m.

Huynh Minh Thanh, deputy general director of Hanco 9, said his company co-operated with Seabank to finance buyers with an interest rate of 11.99 per cent per year for the first three years.

Racing against time, commercial banks have started offering attractive lending interest rates to stimulate the demand of loans from those who want to buy houses. BIDV has offered a shock lending interest rate of 10 per cent per year for some housing projects while the VIB rate is 14.2 per cent and Vietcombank's, 13 per cent. — VNS

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