Banks open up to the housing real estate market

Director of a trading floor on Khuat Duy Tien Street, in Hanoi, said, "We've seen an increased number of customers in June who want to borrow to buy homes." 

Bui Nhat Tan, a worker in Hanoi bought a house in the Xa La urban area for VND1.2 billion (USD57,000). The price was considerably lower than the VND1.8 billion (USD86,000) asking price earlier in the year. 

"We've saved for years to buy a house, but the prices were just too high. We only had about three quarters of what the house cost, so we decided to take out a loan. But since the interest rate is so low, we are not worried about borrowing," Tan said.

During the first months of the year the average annual interest rate for home loans was at  20.5%. Since then it has dropped to 17.5%.Tan, however, got a rate of 16.5% as a result of the banks preferential home loan policies towards workers, and the companies they work for. 

Tan said that the lowered interest rate and the dip in housing prices have enabled her to buy a house, even on a labourer's salary. 

Other banks have followed suit with such preferential loan policies due to the SBV lowering its deposit interest rate and loosening monetary policy. 

ACB, for example, has implemented a programme that offers special low rates for individuals who are employed by businesses that are members of partnerships willing to sponsor the loans. Individual members of these partnerships are also eligible for preferential loans. 

"We hope this programme will provide funds for people in need and help small business owners." ACB leader said.