Delegates hold discussions at the seminar. — Photo tienphong.vn

HÀ NỘI — With real estate businesses facing significant pressure on capital costs and cash flow, maintaining stable and reasonable interest rates will be a key factor for the future recovery and growth prospects of the market, experts said.

At a seminar on interest rates and real estate investment opportunities in the new growth cycle held by Tiền Phong (Vanguard) Newspaper on Monday, Nguyễn Ngọc Tiến, Deputy Editor-in-Chief of the newspaper, said that as the economy entered a new phase of development with many positive expectations, the issue of interest rates was becoming one of the top concerns.

The rates not only directly affect the production and business activities of enterprises, but also have a significant impact on the real estate market – one of the important sectors of the economy, according to Tiến.

Real estate businesses are facing significant pressure regarding capital costs and cash flow. In this context, interest rates become a key factor that can directly impact the recovery and growth prospects of the entire market.

Investor sentiment has become more cautious and homebuyers have also carefully considered their options before deciding to invest amid rising interest rates.

Nguyễn Khánh Phúc, Deputy Director of TPBank’s personal banking division, told the event that to reduce the initial financial pressure for homebuyers, developers had implemented interest rate support policies more strongly than before.  The rate support period now had extends to 5 years instead of only 1-2 years as previously.

At the seminar, Nguyễn Văn Đính, Vice President of the Vietnam Real Estate Business Association, said that the market was undergoing a clear shift in investment trends. In response to interest rate fluctuations, many developers quickly introduced support policies such as preferential interest rates and debt grace periods of three to five years to stimulate demand.

The market was clearly changing its investment trends. Buyers prioritised high-quality products, good infrastructure, and better living spaces. Small projects were becoming less attractive.

The demand for buying for residential purposes and long-term investment was increasing. This would be an inevitable trend as the economy changes and market confidence is strengthened by macroeconomic policies.

Regarding prices, Đính said that there was no basis for a significant price reduction yet.

For sustainable market development, Đính said that it would be necessary to continue improving institutions, diversifying sources of capital, and reducing dependence on bank credit. — BIZHUB/VNS