DANANG VILLA REALTY

The contents of Official Telegram No. 993 can be said to be a good sign, in the context of the "frozen" real estate market for more than a year.

Many real estate business owners believe that credit capital has been tightened since mid-2022 until now, causing not only buyers but also investors to sit on fire. Most do not need a loan to invest in real estate, because they are afraid of high interest rates and do not dare to borrow. And in fact interest rates were very high at one time. Loan levels are low, floating interest rates of some commercial banks lending to real estate are above 10%, some banks are even at 13-14%/year. This is too high an interest rate for both investors and people wishing to borrow to buy social housing.

However, investors also say that although interest rates are currently lower, it is difficult to access capital due to many conditions. This causes banks to have excess capital while businesses and banks cannot meet each other. Therefore, if the State Bank directs commercial banks to promote real estate lending and loosen conditions, it will be very good for economic recovery in general and the real estate market in particular.

Therefore, many investors expect that after this telegram, lending conditions for businesses and individuals borrowing to implement projects, invest, and buy housing will be loosened. Better loan levels and floating interest rates will drop below 10.5%/year, there will be fixed loan packages for the first year of 7.5%/year or loans for 24 months with an interest rate of only 8%/year as before. This.

Besides, deposit interest rates will continue to decrease and the fourth quarter is also the time when many people's savings deposits mature. A large amount of money will be released into the market for production, business and investment, including real estate.

Good news for the real estate market

Mr. Pham Duc Toan, General Director of EZ Real Estate Investment and Development Joint Stock Company, said that the Prime Minister's Dispatch No. 993 is good news for the real estate market and will have a good impact on the market. real estate. This helps real estate credit growth and more cash flow into the market. In addition, home buyers and real estate investors have access to credit capital with possibly lower interest rates.

Mr. Toan assessed that when loan interest rates are very high, up to 13-14%/year, hardly many people want to buy a house. Many people have the mentality of renting and waiting for the opportunity to buy later. However, with the Prime Minister's direction to promote real estate credit lending, banks reduce costs to reduce interest rates and cut administrative procedures so that businesses, home buyers and projects can access resources. capital... will solve many problems for the current market.

Most recently, the Ministry of Construction held a press conference to announce a report on the third quarter real estate market. Accordingly, data from the State Bank shows that as of August 31, 2023, outstanding credit debt for real estate business activities reached VND 986,477 billion. Outstanding credit debt for real estate business activities by the end of 2022 will reach about VND 800,000 billion. Thus, in the first 8 months of 2023, banks have injected nearly 186,500 billion VND into real estate business.

Also according to data from the State Bank, credit growth across the economy in the first 8 months of the year only reached 5.57%, equivalent to an increase of nearly 663,900 billion VND.

The State Bank said that the above developments show that recent solutions to remove difficulties for the market have begun to take effect. Legal difficulties of real estate projects have gradually been removed, contributing to increasing project investors' ability to access credit.

Also in the third quarter real estate market report of the Ministry of Construction, the number of real estate businesses joining and re-joining increased by 18% over the same period. Specifically, in the third quarter of 2023 alone, the number of businesses entering and re-entering the market is 59,559 businesses, an increase of 18% over the same period in 2022 and the highest level in the third quarter since before. now.

Also in the past 9 months, the growth rate of the construction industry recorded an increase of about 6.17% compared to the same period in 2022; The national urbanization rate is estimated at 42.6%; The average housing area nationwide is estimated to be about 25.6 square meters per person (an increase of 0.1 square meters per person compared to 2022); The rate of general urban planning reached 100%.

Real estate supply also grew clearly. Specifically, the number of commercial housing projects completed in the third quarter increased by 300% compared to the second quarter of 2023. The number of infrastructure investment projects to transfer land use rights for housing construction increased by 144%.

In the third quarter of 2023, there were 21 projects with 7,633 commercial housing units completed, an increase of 300% compared to the second quarter of 2023; 863 projects are under construction (442,453 units), an increase of 106.99% compared to the second quarter of 2023. In addition, there are 15 projects licensed to build with 3,028 units, the number of newly licensed projects equal to the second quarter of 2023.

Le Minh - Cong Thuong News