The disbursement of the housing stimulus package, valued at VND30 trillion (US$1.4 billion) in preferential loans, will finish on schedule, according to the State Bank of Viet Nam (SBV).

SBV’s statistics showed that, as of the end of November, VND29.239 trillion had been disbursed, with outstanding loans remaining at VND24.116 trillion.

The disbursement is now being hastened and will finish by the end of this month.

The central bank said the housing stimulus package significantly contributed to the recovery of the property market, reducing stockpiles, removing difficulties for developers, as well as for the recovery of the economy.

Of note, the package enabled more than 50,000 households to purchase affordable homes.

Nearly 86 per cent of the preferential loan package was provided to buyers. Disbursements for buyers are to continue until the end of the year, though disbursements ended for developers on June 1.

A total of VND5.395 trillion from the package was provided to developers.

The housing stimulus package began on June 1, 2013, with the aim to encourage development and purchase social housing projects and affordable homes, providing impetus to the stagnant real estate sector.

Disbursements from the package were previously scheduled to finish by June 1, but due to disappointing results the Government extended the deadline until the end of this year.

After the VND30 trillion package, the property market was still awaiting new loan packages for social and affordable housing.

In June, the Prime Minister decided upon a preferential lending interest rate of 4.8 per cent for social housing purchases, to be offered by the Bank for Social Policies by December 31. Although the deadline nears, preferential loans remained inaccessible due to the shortage in sources of capital. – VNS