Gold prices continue to rise, real estate loan interest rates sharply decrease
As of the morning of March 12, domestic gold prices continue to rise after many days. Accordingly, SJC gold listed by Saigon Jewelry and Gemstone is priced at 80.5-82.5 million VND/tael; Bao Tin Minh Chau also increased to 80.5-82.4 million VND/tael.
Round gold ring prices listed by Bao Tin Minh Chau are 70.08 – 71.38 million VND/tael (buying – selling) while Saigon Jewelry and Gemstone listed prices at 69-70.25 million VND/tael in the afternoon. Buying price – selling price.
Compared to the previous session, gold prices increased by 200 – 500 thousand VND/tael.
(Illustration photo)
Thus, continuously within 7 days, SJC gold and round gold rings have been continuously increasing and continuously establishing new peaks.
While gold prices continue to rise, savings interest rates continue to decline. According to a survey, in a 12-month term, no bank pays interest up to 6%/year. Even many banks apply the highest interest rate of less than 5%/year. In shorter terms, interest rates are extremely low.
For example, in the Big 4 bank group, Vietcombank has the lowest interest rate with 1.7%/year for a 1-2 month deposit term, 2%/year for a 3-month deposit term, 3%/year for a 6-9 month deposit term, and 4.7%/year for a 12-60 month deposit term. Meanwhile, Agribank also applies the lowest interest rate of 1.7%/year for a 1-2 month term, and the highest interest rate of 4.9%/year for a 2-year term.
Will money flow strongly into real estate?
As gold prices continue to rise and savings interest rates decrease, the expectation that money will flow into real estate will occur. Dr. Dinh The Hien, an economist, believes that with continuously decreasing interest rates, many investors expect money to flow into real estate. However, Mr. Hien believes that “this is unlikely to happen”.
Explaining this point of view, the economist analyzed: First, the lower savings interest rates are consistent with the interest rate curve. Therefore, people need to be accustomed to low savings interest rates. Second, real estate has gone through a period of excessive price increases and is returning to its true value. Mr. Hien stated that real estate is still an investment channel that faces many difficulties and real estate prices no longer increase as much as before. Investors will also be more cautious when investing capital.
In a recent talkshow, Mr. Phan Nguyen Huu Phuong – Securities expert of DNSE predicted that idle money will turn to investment in the stock market. According to Mr. Phuong, there are not many investment channels in Vietnam. The main investment channels are real estate, deposits, stocks, gold, and one more investment channel that has not been officially accepted is crypto. Mr. Phuong believes that recently, gold prices have increased and crypto has surged. Currently, real estate has shown signs of cooling down compared to past developments. The rising prices of real estate will tend to slow down. This is the reason why idle money will seek better investment channels such as stocks.
Meanwhile, Mr. Tran Thang Long – Chief Analyst of BIDV Securities Company believes that savings interest rates are at a level that surprises many people because they are lower than during the Covid-19 epidemic. This is the reason why many people and investors are restructuring their assets. However, Mr. Long believes that stocks are the only attractive investment channel.
Meanwhile, Mr. Ngo Thanh Huan, CEO of FIDT Investment Consultancy and Asset Management Joint Stock Company recommended that gold prices have increased too high, so investors should not “buy at the peak”. Instead, at this time, investors can hold onto gold. Evaluating the real estate investment channel, Mr. Huan stated that there are still many difficulties preventing real estate from attracting a large amount of money.
