Realtors in high spirits after hearing about VND120 trillion credit package

The information about the big preferential credit package specifically reserved for the real estate sector was good news at a conference on the real estate market development presided over by the Prime Minister on February 17.

Vu Cuong Quyet, CEO of Dat Xanh Mien Bac Real Estate and Services, said realtors were elated by the good news which shows the government’s attention to the real estate market. 

Quyet stressed that the credit package, to be used for social housing and housing for factory workers, is necessary for the market, real estate firms and home buyers.

Currently, products for high average income earners, who can afford prices of VND30-50 million per sqm are in short supply in Hanoi and HCM City. 

Meanwhile, products with prices of VND20-30 million per sqm are no longer seen in large cities. They are only available in provinces. 

Therefore, restructuring real estate products is important and needs to be done.

Meanwhile, a land bank for low-cost housing development is limited. Realtors want the state to create reasonable policies to develop the mid-end and affordable market segment.

Nguyen Van Dinh, deputy chair of the Vietnam Real Estate Association, said that the market is quiet and has weak liquidity because of the lack of capital.

“The major problem in the short term is capital. Transactions will come back if buyers can access loans. Launching a credit package in the immediate time is the most important solution,” Dinh said, adding that solving the problems of the bond market is also a necessity as this will restore buyers’ confidence.

Dinh said that the real estate market needs to restructure products and find the balancing point between supply and demand as instructed by the PM. The market will bounce back when prices go down.

Nguyen Quoc Hiep, president and CEO of GP Invest, said the conference shows that the government pays attention and seeks solutions to help remove difficulties. He believed that the conference would have psychological influences and restore people’s confidence.

Commenting about solutions presented at the conference, Hiep said the solutions related to corporate bonds, debt settlement and credit would be implemented at the soonest, while it will still take time to deploy the solutions related to legal procedures.