Prime Minister requests housing credit package for people aged 35 and under

(Dan Tri) - The Prime Minister requested the State Bank and commercial banks to research and continue to have credit packages for young people aged 35 and under.

On the morning of February 11, Prime Minister Pham Minh Chinh chaired a meeting of the Government Standing Committee working with commercial banks.

The Prime Minister requested the State Bank and commercial banks to study and continue to have preferential credit packages for both supply and demand to develop social housing, housing for young people aged 35 and under, housing for the disadvantaged; actively contribute to eliminating temporary and dilapidated houses nationwide.

Recently, the Ho Chi Minh City Real Estate Association (HoREA) also sent a document to the Government proposing a number of solutions to encourage the development of affordable commercial housing with prices not exceeding VND35 million/m2 and apartments priced not exceeding VND3 billion.

The Association also proposed that the State Bank consider building a mechanism for young people (18-45 years old) buying their first home to borrow credit at reasonable commercial interest rates (about 6-7%/year, secured by the house itself) for a period of 10-15 years to create a "push".

An apartment building in Hanoi (Photo: Tran Khang).

"Most young people are ambitious and have a long life to do business and pay off debts. Normally, after about 10-15 years, their income will double or more than double, so there is almost no risk for commercial banks to lend," the Association commented.

Mr. Nguyen Quoc Anh - real estate expert - said that currently, a person in the 9x age group (from 26 to 35 years old) needs 25.8 years of income to buy the above apartment for 3 billion VND, under the condition of a mobilized interest rate of 4.5%. "Although the number of years of income and interest rates have decreased over time, in general, young people of all generations still need to make efforts for a long time to be able to own a house," he said.

According to him, Vietnamese people in particular and Asians in general still have high expectations about owning real estate in their lifetime, with common reasons including high and stable yields, underdeveloped financial markets, social recognition and property as a place to live for the family.

Recently, housing prices in large cities have continuously increased, making people's ability to own a house increasingly limited. According to a report by the Ministry of Construction in 2024, in Hanoi, apartment prices increased by about 40-50% compared to 2023, with some projects and areas having higher prices. In Ho Chi Minh City, apartment prices increased by about 20-30% compared to 2023, with some projects and areas having higher prices.

Source: https://dantri.com.vn/bat-dong-san/thu-tuong-yeu-cau-co-goi-tin-dung-nha-o-cho-nguoi-tu-35-tuoi-tro-xuong-20250211171031852.htm