Cautious Policy Needed
The Ministry of Construction has proposed a maximum loan limit of 50% for second homes and 30% for third homes in the draft Resolution on mechanisms to control and stabilize real estate prices, attracting significant feedback.
Speaking to reporters, Mr. Vu Kim Giang, Chairman of SGO Group’s Board of Directors, believes that if approved, the proposal would impact market liquidity. He explains that the real estate market operates on two primary demand sources: buying for personal use and buying for investment or asset accumulation. Tightening credit for home purchases directly affects investors.
“Borrowers may also face challenges verifying ownership status (first, second home, etc.). Previously, verifying eligibility for social housing led to numerous complications,” Mr. Giang cited.
He suggests that reducing real estate prices requires a comprehensive, long-term strategy with synchronized solutions. The focus should be on developing housing to meet genuine demand, while investment-oriented segments should operate under market principles.
“Restricting loans for second or third homes could cause sudden market disruptions. Whether prices drop remains uncertain, but investment capital in real estate will likely shrink, potentially causing market difficulties,” Mr. Giang expressed concern.
Businesses fear sudden market impacts from restricting loans for second or third homes. Photo: Hoang Ha |
Meanwhile, economist Nguyen Quang Huy, CEO of the Faculty of Finance and Banking at Nguyen Trai University, emphasizes that any policy directly affecting the housing market—impacting millions of citizens and businesses—requires caution, public input, and phased implementation.
“Simultaneous rollout could lead to unintended consequences, such as reduced liquidity, buyer uncertainty, and even disruptions to genuine homeownership goals,” Mr. Huy noted.
To ensure feasibility and fairness, he recommends broad public consultation, especially with actual homebuyers, upgraders, or those purchasing for their children—groups most affected by credit limits.
Additionally, input from commercial banks, real estate firms, and economists is essential for a comprehensive view of supply-demand dynamics, finance, and social investment.
“Pilot programs could start in smaller, speculative areas with abnormal price increases. A full impact assessment should precede nationwide expansion. For restricting loans on second or more homes, the focus should be on accurate, phased implementation with societal consensus, not haste,” he stressed.
Addressing the Root Cause of Housing Prices
Mr. Nguyen Quang Huy notes that while credit control is vital, the core issue remains the supply-demand imbalance.
For sustainable market growth, he identifies three key pillars: significantly increasing social housing and affordable commercial housing supply for genuine demand; accelerating satellite city development with robust infrastructure links to urban centers; and streamlining project approvals to reduce costs and enable reasonable pricing.
According to Mr. Huy, these parallel measures would reduce speculative demand, allowing the market to self-regulate based on real supply and demand, rather than relying on short-term administrative fixes.
Attorney Nguyen Thanh Ha, Chairman of SBLaw, argues that restricting loans for second or third homes conflicts with the Law on Credit Institutions and current regulations. He states that credit institutions have the right to fund projects meeting conditions with secured assets.
“To curb speculation, taxation is more effective. Higher taxes on second or third homes are preferable to credit restrictions,” Mr. Ha opined.
He highlights limited supply as the primary driver of high housing prices. In major cities, social housing and affordable commercial options are scarce. Legal hurdles in many projects need swift resolution to boost supply.
“Land costs in projects are excessively high, inflating input expenses. Meanwhile, numerous legally clear projects remain stalled for years. The government should consider revoking licenses from non-performing developers and reallocating them to capable entities,” Mr. Ha proposed.
Additionally, accelerating social housing—targeting 1 million units—and developing affordable commercial housing plans, while resolving legal bottlenecks, would increase supply and stabilize prices.
Nguyen Le
– 05:30 16/10/2025
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