Rising interest rates impact the real estate market

VTV.vn - Since the beginning of November, interest rates for home loans at banks, after the preferential period ended, have increased to over 12%/year.

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0% or 6-7%/year - this is the preferential interest rate that many investors have offered to attract home buyers. However, after about 6 months to 1 year, when the preferential period ends, the common floating interest rate of banks has increased to 12-14%/year.

At the Forum on Building a Healthy and Sustainable Real Estate Market, many opinions said that increasing interest rates will directly impact buyers in the market.

In many projects, home buyers only need to pay 30% of the purchase contract value to be able to borrow from the bank. For example, for a house worth 3 billion VND, the buyer only needs 900 million VND, the remaining 2 billion VND can be borrowed from the bank. After the preferential period ends, the interest rate can double, causing a significant burden for many home buyers.

According to the State Bank, outstanding real estate credit accounts for nearly 24% of the total outstanding debt of the entire economy - the highest level in many years. Notably, in many projects, the buying and selling is mainly done by speculators buying and selling to each other.

Dr. Nguyen Chi Hieu - Director of the Institute for Research and Development of Global Financial and Real Estate Markets commented: "It is not difficult for banks to limit lending for land investment. A person buying land who has a plan to build a house must let the bank know. If a person does not have that plan and only mortgages the land, he is a land speculator, the bank needs to limit that."

To limit real estate speculation and control capital flows into the "hot" segment, recently, the Government has requested ministries and branches to study the use of many market regulation tools such as tax and credit policies, along with many appropriate management measures.

However, market opinions say that the application must be designed with a roadmap, clearly classifying target groups, avoiding the confusion between real home buyers and speculators.

Source: https://vtv.vn/lai-suat-tang-tac-dong-toi-thi-truong-bat-dong-san-100251205093751442.htm