State Bank package fires property market

Saturday, May 18, 2013 11:37

Illustrative image.— Photo VTV

HCM CITY (Biz Hub)— Property developers are beginning to sell apartments in anticipation of the State Bank's credit package of VND30,000 billion (US$1.5 billion) for builders, the Sai Gon Giai Phong newspaper reported.

One developer, the Thuy Loi 4A Property Investment Joint Stock Co, for example, showed a sample apartment in its Hyco4 Tower project to customers last week.

The company asked potential buyers to put down at least 50 per cent of the apartment value and the remaining payments within 24 months at zero interest rate.

Located in HCM City's Binh Thanh District, the project consists of 330 apartments covering 52sq.m, 77sq.m and 81sq.m, with the price from VND1.2 -2 billion.

The building is expected to be handed over to customers in the third quarter of the year.

Nguyen Quoc Chinh, the company's deputy director, said the company chose this period for apartment sales because of the State Bank of Viet Nam's credit support package.

The State Bank's credit stimulus package, which amounts to VND30,000 billion (nearly US$1.5 billion), is expected to shore up the real estate sector.

Preferential interest rates will be an added incentive for the real estate industry. Thirty-five per cent of the total bank package will be used to lend to project investors. Buyers will be able to borrow no more than 85 per cent of the property's value.

The package is targeted at investors who are pouring money into social housing projects; commercial residential housing under 70sq.m and under VND15 million per square metre; and low-income earners, as well as other key groups.

Another company expected to borrow money from the bank is Hung Loc Phat Production and Construction Ltd Co, an investor in the Hung Phat apartment project located in Nha Be District. Construction was underway on 56-97sq.m apartments.

Le Huu Nghia, director of Le Thanh Trading and Construction, said the package would help recover market confidence and wipe out "the waiting psychology" of customers. Low- and medium-priced projects that offer apartments valued under VND1 billion are expected to sell well. — VNS

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