Apartment buildings in Hoang Mai district of Hanoi (Photo: VNA)Earlier, the central bank decreasedregulatory interest rates on March 14 and 31.
The SBV said that under the NationalAssembly’s resolution and the Government and the Prime Minister’s directions, themonetary policy has been governed in a proactive, flexible, timely, andeffective manner and combined with the fiscal and other macro-economic policiesso as to help control inflation, stabilise the macro-economy and the monetarymarket, and reduce interest rates to assist with economic growth recovery.
Economist Can Van Luc, member of the nationalfinancial and monetary policy advisory council, described the recent interestrate cuts by many banks as positive for the real estate market since lowerlending interest rates will benefit both sellers and buyers.
He elaborated that pressure fromcapital costs will ease as developers can access loans with more reasonableinterest rates, issue more attractive sales policies, and have more resourcesto complete unfinished projects and launch new ones.
Property demand will also recover sincehigh lending rates have previously discouraged customers from buying realestate. Besides, customers have waited for property prices to go down further,and with more interest rate cuts, prices will continue declining and purchasingpower may rebound, Luc added.
A graphic image of a high-end property complex in Da Nang city (Photo: VNA)Experts from the Vietnam Associationof Realtors (VARS) said the monetary policy tightening has shown signs of slowdown,and the tightening period is likely to end by the end of the second quarter of2023.
Following the SBV’s reduction ofregulatory interest rates thrice since March to aid enterprises and theeconomy, commercial banks have cut deposit interest rates. Thanks to lower rates,including bond and inter-bank ones, customers now can access loans with interestrates of 10 - 11% and even lower.
However, VARS experts also noted onlywhen average interest rates drop to under 10% can the property market strongly “respond”.
A VARS survey revealed that totaldeposits made in the banking system increased by nearly 900 trillion VND (38.3billion USD) in 2022, 46% of which was made in Q4.
Pham Anh Khoi, a member of the VARSmarket research working group, said Q3 of 2023 will be the key point of timewhen a large sum of deposits at banks will start becoming mature, and themarket will see whether or not money flows will return.
VARS Chairman Nguyen Van Dinhpredicted that in the optimistic case, the property market will bounce backfrom late Q2 and early Q3 this year, when real estate prices may become morereasonable, especially in the groundland segment, and stimulate purchasedecision./.
VNA
