HA NOI (VNS)– The Bank for Investment and Development of Viet Nam yesterday signed an agreement with the Ministry of Construction to kickstart Viet Nam's stagnant property market by providing VND30,000 billion (nearly US$1.5b) to develop social housing between 2013-15.
The mammoth amount will be offered with preferential interest rates as an additional incentive for the real estate industry.
Accordingly, 35 per cent of the amount will be used for lending to project investors and the maximum sum that can be lent for each project is 70 per cent of its worth.
For buyers, the maximum level of borrowing is 85 per cent of the property's value.
The programme is targeted at project investors who are implementing social housing projects, commercial residential housing under 70m2 and under VND15 million per square metre, low-income earners and other key groups.
According to minister Trinh Dinh Dung, the agreement aims to solve the current obstacles facing the real estate market, especially in the social housing sector. — VNS