Real estate market in Binh Duong province has recently witnessed close cooperation between banks and investors in real estate projects. This is a good signal to low-income workers may soon have their own house.
Banks keeps with new trends
In November 2014, the State Bank of Vietnam (SBV) issued Circular No. 36 stipulating risk coefficient in securities lending, in which real estate was decreased from 250% to 150%. This has created great expectations and considered as a boost to real estate market. In fact, a few months after Circular 36, real estate loans soared. Ministry of Construction also reported, during the first quarter 2015, real estate credit balance reach over VND300 trillion up to March 31st. Many commercial banks have kept pace with market trends.
In Binh Duong province, banks have also injected capital into real estate businesses. Vietinbank has launched loans package worth VND30,000 billion applied to customers wanting to buy social houses of Becamex IDC. Since early 2014, BIDV – Binh Duong branch has also cooperated with Becamex IDC to release funds for customers of VND30,000 billion loans package. Thus, there have been more than 300 successful transactions. Along with increasingly hot temperature of real estate market, banks have been more interested in real estate loans, making dreams of many people come true.
The close cooperation between Becamex IDC and provincial banks has created chances to own social houses for low-income workers. Image: Hoa Loi social housing project invested by Becamex IDC.
Vietcombank is also an active bank in granting real estate loans. On April 18th, cooperation project between Vietcombank - Binh Duong branch and National Housing Organization (NHO) was organized at Diamond Palace Convention Center in HCM City. Accordingly, the bank grants loans of VND30,000 billion package with an interest rate of 5%/year, and is also a big customer of Binh Duong First Home Premium project invested by NHO with 100 apartments in the first transaction.
Many opportunities for buyers
The partnership between Vietcombank and NHO has brought financial benefits to house buyers taking loans from the bank. Accordingly, Vietcombank guarantees Binh Duong First Home Premium project to finish on schedule, then will transfer apartments to house buyers. If there were conflicts during transaction, the bank would refund the money to customers.
Mr. Bui Quoc Nghia, worker of GS Battery Company (VSIP 1), said: “After enquiring about Becamex social housing project at Viet Sing residential area, I decided to buy a house here. Becamex IDC and BIDV instructed me to complete procedures and took out a loan of VND30,000 billion package. Currently, I own a house here”.
According to Mr. Bui Van Chien, Deputy Director of Becamex IDC, housing demand of low-income workers is increasing. Due to low incomes, they cannot afford real estates with instant payment. Therefore, the cooperation between Becamex IDC and commercial banks have helped thousands of people to purchase houses and settle. In the future, this cooperation will be strengthened to bring many benefits to customers and the overall success of the 100,000 social houses project.
It can be said, in recent years, due to Circular 36 of SBV, the cooperation between banks and real estate investors in Binh Duong has become closer. Thereby, banks seized investment opportunities to find customers and give low-income people a chance to take out loans and buy houses. This new trend and adjustments of conditions for home loans under VND30,000 billion package have helped investors to reduce sales pressure and implemented successfully housing projects for workers in the province.
Reported by K.Vinh – Translated by Ngoc Huynh
