Thanks to the government’s real estate loan package, frozen property market has showed a recovery.
The Department of Construction in Ho Chi Minh City said in the first six months of this year, around 3,200 apartments were sold , an increase of 31.2 percent compared to same period last year. Most of sold apartments with area below of 70 square meters are priced at around VND15 million (US$ 706.803) per square meter and worth VND1 billion (US$47,114) for each.
The Ho Chi Minh City Real Estate Association (HoRea) said the market has seen the recovery with more houses being sold.
Of 14,490 apartments in inventory in 2012, 6,970 condos worth VND11,849 billion (US$ 558,256) have been sold, the city’s Department of Construction said. The remaining condos have the area over 70 square meters or in inconvenient location or construction progress falling behind schedule.
Property investors said that people can loan from VND30-trillion (USS$1.43 billion ) financial aid package, which allows low-income earners with an interest rate of lower than 6 percent a year for social houses.
For instance, 200-apartment Ngan Long condo project in District 12 has been sold out because most of buyers were loaned. Similarly, apartments in projects of investors Le Thanh, Nam Long, Phuc Khang, Hung Thinh have also been bought after buyers received money from the financial aid package.
A bank leader said that the aid package has been effective in helping low-income earners buy houses condos.
Horea said that customers will continue buying the apartments with small areas which are priced at below VND 15 million per square meter. Apartment with small area and social houses will be sustainably developed to satisfy the demand of housing of employees in state companies and low-income earners.
Le Hoang Chau, chairman of Horea petitioned the government allow people who buy the apartments with the area of over 70 square meter being priced at VND12 million per square meter to loan from the VND30-trillion aid package.
To reduce houses in stock, Chau suggested related agencies stopping paying attention to new projects but focusing projects in the middle of construction with small apartment which customers can ask for the financial aid.
Horea also sent a document to the government petitioning assistance package with a stable lending interest rate from 3-3.5 percent and increase the lending term to 20 years to practically support customers.
In addition, the government and the Ministry of Construction should invest in two national targeting programs such as developing social houses for hiring and social house for buying.
State Central bank also petitioned the Ministry of Construction to add more people in the financial aid package and more condo project investors can benefit preferential capital to help the property market recovery.