Apartment buildings for low-income earners in Đặng Xá Urban Area, Gia Lâm District, Hà Nội. — VNA Photo Tuấn Anh
Viet Nam News
HÀ NỘI — HCM City Real Estate Association has proposed the State Bank of Việt Nam should raise a stimulus package similar to its previous VNĐ30 trillion (US$1.3 billion) preferential home loan package.
The package should aim to provide preferential loans for the purchase of affordable apartments, with prices of around VNĐ1 billion per unit.
Since the VNĐ30 trillion housing stimulus package ended in 2016, no similar packages were released, while demand remained high, the association said.
The association said a sum of VNĐ1 trillion out of VNĐ2 trillion, allocated to the Việt Nam Bank for Social Policies to support social housing projects, should be transferred to four credit institutions - Vietcombank, Vietinbank, Agribank and BIDV - to provide preferential loans for social housing purchases.
In addition, the State budget should spend some VNĐ1-2 trillion annually in the 2018-20 period to provide loans for affordable home purchases at the preferential interest rate of 4.8 per cent per year.
The association also proposed mechanisms to be put in place to ensure the preferential lending package is used for the right purposes.
Further, preferential credits should also be provided to social housing developers to lower housing prices.
The VNĐ30 trillion housing stimulus package was introduced in 2013 when the real estate market faced high inventories and bad debts after the 2008-09 freeze.
Some 70 per cent of the package was provided to home buyers at preferential interest rates. The package helped more than 56,000 low-income earners to own homes. — VNS