Proposal to buy commercial houses under 3 billion to borrow 120,000 billion VND package

That is one of the notable recommendations in the latest report just sent by the Ho Chi Minh City Real Estate Association (HoREA) to the Prime Minister, the State Bank and the Ministry of Construction.

At the same time, HoREA proposed that the Ministry of Construction continue to coordinate with the State Bank, the Ministry of Planning and Investment, and the Ministry of Finance to develop a preferential credit package for social housing worth VND110,000 billion to implement the Housing Law expected to be passed by the National Assembly at the 6th session and to implement the Program to develop at least 1 million social housing units in the 2021-2030 period.

The association also proposed many credit solutions for real estate. In particular, HoREA proposed that for projects that have had investment policy approval decisions at the same time as investor approval, commercial banks should be able to provide credit loans to investors to offset financial costs with loans not exceeding 30% of the total investment of the project.

For projects that have a construction permit and have started construction, the Association proposes that commercial banks may consider providing investors with credit loans to pay for and cover project implementation costs and business activities with the loan amount not exceeding 50% of the total investment of the project.

HoREA stated that although the real estate market is still facing many difficulties, there is every reason to affirm the prospect of recovery and continued growth in a safe, healthy and sustainable direction.

Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association, said that with the participation of agencies and departments combined with the efforts and responsibilities of all real estate enterprises to resolutely restructure enterprises, restructure investments, restructure housing products towards real needs, and reduce housing prices to a reasonable level, the real estate market has the prospect of recovering and growing again from the second half of 2024 onwards.

According to Mr. Chau, one of the driving forces that will contribute to the early recovery of the real estate market is that the demand for housing in society is still very large, especially the demand for affordable housing and social housing for the majority of middle-income and low-income people in society is very large.