Some bankes have suspended credit approval and loan disbursement for real estate companies under active risk control policy in this sector. This is causing concern for many people as the opportunity to buy a house is reduced.
The State Bank has required strict control of credit in high-risk sectors, including real estate. Many commercial banks such as Sacombank, Tecombank, Agribank, etc. have started to tighten loan approval, control disbursement limits for housing loans, and even stop lending to the real estate sector.
These motives have made many homebuyers and investors worried about losing financial leverage. Van Quyet, a long-time investor in Ho Chi Minh City, shared that he was worried that using financial leverage to invest in real estate would be difficult when banks tighten credit.
Financial support from investors is still the lifeline that many real estate investors and buyers need when house prices continuously increased over the years.
“Although I’m not a surfer, and mostly investing long-term, I’m also worried that it will be difficult for me to get a loan. My financial situation is quite stable at the moment but it is impossible to predict in the current economic situation. To be on the safe side, I’m only looking at projects that have a long-term loan and payment support policy, which make the payment process more comfortable and ensure financial capacity in unpredictable circumstances”, he said.
Dr. Nguyen Tri Hieu, an economic expert, said that the land fever can basically be controlled by tightening credit. But from an investment perspective, the stakeholders who are using financial leverage will not be able to invest, so the demand will decrease. Even real home buyers have difficulty because they cannot get loan to buy houses. On the other hand, ithgtening credit in real estate sector also alerts the risk of increasing loan interest rates. The consequence of higher interest rate is that investors will be unable to withstand the interest rate and will cut loss.
However, not all banks have stopped lending for real estate business, or buying houses. Banks are still lending to real estate project developers, especially to investors who have a full and reputable land fund in the market. In fact, there are still many investors who maintain preferential lending policies and support payment with home buyers. For example, Nam Long still applies a purchase support policy with the projects that the business is offering for sale, namely Akari City (Binh Tan) and Flora Panorama (Binh Chanh). With the Akari City project, Nam Long applies to customers to choose from two preferential loan packages including 0% interest rate support for 12 months, 12-month principal grace period or a fixed 6% loan interest rate and debt grace original for 2 years. In addition, customers are also supported by the investor to extend the payment period up to 30 months from the time of construction until the handover of the house.
With the Flora Panorama project in the South Saigon area, Nam Long Group also applies the same loan policy and allows buyers to pay 50% until the house is handed over. Thus, with the initial capital of only 30%, after receiving the house, the remaining interest and principal must be paid, reducing financial pressure. In fact, this is one of the best customer support policies on the market today that only large, potential investors can research and apply. Akari City is offering phase 2 for sale with a price range of 45 million/m2, while Flora Panorama is priced from 50 million/m2 and is about to be opened for sale in April 2022.
Investors with a clean land fund, clean legal status, and strong finance are still prioritized by banks in the list of loans.
In Binh Chanh, the Westgate complex of investor An Gia is also attracting buyers thanks to the maximum payment policy of 699 million VND and will not continue to pay until the house is received in the fourth quarter of 2023. For the rest, the investor supports interest rates, graces the principal until receiving the house, and at the same time, commits to a profit of up to 18%. RioLand’s MT Eastmark City project also applies a loan support policy for buyers such as paying 30% of the apartment value (about 600 million VND), the rest is supported with a 0% interest loan, debt grace At the time of receiving the house, helping buyers have 3 years to relax and balance their finances. This project is also about to be introduced to the market in April with a selling price of about 36 million/m2.
Another investor, Sky Garden of Phu Dong Group, also announced an attractive payment policy, buyers only pay 20%, banks lend 50% during 2 years of construction with 0% interest, grace period. principal until receiving the house. At the same time, the investor commits to buy back the house with an interest rate of 12%/year. Thus, a 70m2 apartment costs about 2.8 billion VND, young people only need to have a modest accumulated capital of about 560 million VND to be able to buy.
According to Mr. Le Hoang Chau, Chairman of Ho Chi Minh City Real Estate Association, with real estate projects developed by reputable investors, clean land fund, full legality… the fact that banks link to lend to customers is still happen normally. This is also the type of real estate that buyers feel secure because there is a link between the project investor and the banking system for lending, instead of worrying about being squeezed like a personal loan to buy investment land, collect agricultural land. . Buyers who need a bank loan to buy an apartment completely “depend” on the project investors. This is also the time to choose investment segments to limit risks, not to be financially disrupted when there is a change in policy.