In contrast to the continuous escalation of apartment prices in Hanoi, loan interest rates for home purchases are at their lowest ever.
At commercial banks, since the beginning of November, the lending rate for home purchases has been fluctuating between 4.6% and 9.5% per year. After the promotional period, the floating rate for loans to existing customers at many banks has mostly risen above 11.7% per year.
Agribank offers a fixed interest rate of 6% per year for the first six months, 6.5% per year fixed for the first 12 months, or 7% per year fixed for the first 24 months.
BIDV provides promotional rates for home loans at 5.2% per year for the first six months or 6% per year fixed for the first 24 months. Post-promotion, the home loan interest rate will be floating and calculated as the 12-month deposit rate plus a 4% margin.
VietinBank offers a loan package for construction and home improvement with the following interest rates: 6% fixed for the first 12 months; 6.5% fixed for 18 months, 6.7% fixed for 24 months, or 8.2% fixed for 36 months.
Vietcombank also offers attractive loan packages for home purchases, with interest rates starting from 5.5% per year for the first six months for loans under 24 months, 5.7% per year for the first 12 months for loans over 24 months, and 6.5% fixed for the first two years.
House prices remain high. |
Private banks also offer attractive loan packages. VPBank, for example, offers a fixed rate of 4.6% per year for the first three months and 5.9% per year for the first six months.
According to the State Bank of Vietnam’s report, despite the market not recovering as expected, credit outstanding for real estate business activities reached VND1,274,233 billion by the end of the third quarter of this year, up 29.1% over the same period last year. However, the outstanding balance of loans for construction, repairs, and home purchases accounted for only about VND125,800 billion.
According to analysts at VPBank Securities, the industry’s growth momentum depends on the real estate sector, especially home-buying demand. However, high property prices have made people reluctant to borrow for home purchases. Meanwhile, while home loan interest rates have cooled down, they remain high.
According to the Vietnam Real Estate Brokers Association, a family needs a minimum income of VND40-50 million per month to ensure repayment of loans and monthly living expenses.
Mr. Nguyen Van Dinh, Chairman of the Vietnam Real Estate Brokers Association, said that reducing lending rates for home purchases could provide certain short-term benefits by reducing the financial burden on people. However, this is not a comprehensive solution to the problem of homeownership in Vietnam. The key issue remains the high property prices compared to people’s income, along with the shortage of social housing supply and the ineffectiveness of support packages.
Ngoc Mai
“A Flood of Long-Term Investment Cash Flows into Villas and Township Housing”
For villas and townhouses within projects in Q3 2024, a survey by the Ministry of Construction revealed that this segment continues to see robust transactions, with a significant amount of long-term investment money and end-users still very much in the game.
The Capital City Considers: Implementing an Automated Toll Collection System for the City Center
On November 1st, the Hanoi People’s Committee held its regular meeting for November 2024 to discuss several matters ahead of the Municipal People’s Council session. During this meeting, the city’s leaders considered and provided feedback on the proposal to implement a fee-based scheme for entering the inner-city areas.
The Hanoi Mega Project: Unveiling a $4.5 Billion Vision with a 60,000-Seat Stadium and World-Class Sports Complex
“A productive meeting was held between the Prime Minister and the CEO of JTA, an international investment and consulting firm. The discussion focused on a range of topics, with a keen interest in exploring potential opportunities for collaboration and investment in the country’s thriving economy.”
The Capital’s Green Initiative: Revitalizing Hoan Kiem District by Piloting a Pollution-Reducing Traffic Scheme
To develop the draft resolution on building a low-emission area (environmental safe zone), the drafting agency is surveying and working with several inner-city districts to identify areas that meet the criteria for being environmentally safe and require restricted traffic.
The Ever-Changing Landscape of Hanoi’s Social Housing: From Affordable to a Few Billion Dreams
The Hanoi apartment market is experiencing a significant surge in prices, with social housing costs skyrocketing to a range of VND 40-45 million per square meter, and some units even exceeding VND 50 million. Prospective buyers are now facing the reality that purchasing social housing comes with a hefty price tag, requiring billions of VND to even enter the conversation. This unprecedented rise in prices has caught the attention of many, highlighting the changing landscape of the real estate market in Hanoi.
