2% loan interest subsidy to homebuyers recommended to revive market

The subsidy should be provided starting next year and for the entire loan tenure but should not be effective after December 31, 2023, it said.

In Ho Chi Minh City, an apartment priced at VND2 billion or less is typically located on the outskirts and has one bedroom bathroom each.

In neighboring localities such as Long An and Binh Duong provinces, the money can fetch a unit with two bedrooms and bathrooms.

Some property developers are eyeing this segment as supply is low following the focus on mid- and high-priced properties in the last four years.

The association also proposed other solutions to ease the issues plaguing the housing market.

It suggested that the State Bank of Vietnam should allow property companies to borrow again from the same creditor even if they have not repaid their previous loan.

It also said property companies should be allowed to use bonds as collateral for loans.

Le Hoang Chau, its chairman, said developers and homebuyers are struggling to get loans since banks do not accept bonds as collateral and do not lend again until an existing loan is paid off.

Amid the difficult economic situation and challenging housing market, the SBV should relax the credit approval standards, he added.