Young people still have difficulty buying houses despite their preferential interest

Interested in the settlement problem of young people, Prime Minister Pham Minh Chinh recently asked the State Bank and researchers to research, with preferential credit packages for both supply and demand to develop houses in the commune. Association, home for young people aged 35 and under and difficult groups.

Responding to the call from the Government, in the middle of this month, Asia Bank (ACB) launched the “first home” loan package for people under 35 years old with an interest rate of 5.5% fixed in 5 years. Borrowers can flexibly repay the debt with small amounts in the early years and gradually increase with future income.

This loan package according to ACB representative, designed by the method of returning the principal capital in accordance with the customer’s income and the preferential interest rate of the first time is 3% lower than the general announced interest rate of the market.

Also in February, Saigon – Hanoi Bank (SHB) announced a loan package of VND 16,000 billion to serve the needs of buying houses with preferential interest rates 3.99% a year in the first 3 months. After this time limit, the bank applied the floating interest rate.

SHB said that customers can borrow up to 90% of the value of assets intended to buy and exempt from the original up to the first 60 months (equivalent to 5 years) and be included with credit cards or overdraft limits.

However, many young people (from 35 years of age) think that only interest incentives are not enough. The main barrier in their settlement story is still the story of real estate price beyond the ability to earn income, difficult to find houses affordable to buy.

Ms. Uyen Trang (34 years old), a human resources specialist at a commercial bank (District 1, Ho Chi Minh City), said that with an income of 26 million VND per month (belonging to a high income group), she still did not have enough enough The ability to buy houses in Ho Chi Minh City, despite saving more than 1 billion.

According to Trang, interest rates are a matter of concern, but the biggest barrier is still too high house price. A popular apartment in Ho Chi Minh City, dating back to less than 10 years, the price is almost over 3 billion VND, the new project is from 4 billion VND per unit.

“Even if the preferential loan interest is 3.9-5.5% per year, if the house price is still from 3-4 billion today, I cannot afford to buy because of the ability to repay the debt,” she speak.

Thu Hien and her husband (35 years old, Thu Duc city) are in the income group of over VND 25 million per month, the current finance has VND 1.5 billion, also said that they did not dare to buy a house. Hien once planned to buy a new apartment with an area of ​​60 m2 in the budget of about VND 3 billion (only capable of borrowing about 1.5 billion).

But after a period of research, she found that the projects under implementing 60 m2 were from 4 billion or more. If borrowing 2.5 billion dong for 20 years, although the preferential interest rate is 5.5%, Hien has to pay an average of 20-22 million dong per month. At the end of the preferential time, floating interest rates may be over 10% a year, the monthly payment will be over 26 million VND (gradually reduced according to the principal balance).

“This money accounts for more than half of the family’s income, so we do not dare to buy a home,” Hien said.

See the above problemDr. Can Van Luc, economist, head of BIDV, said that the loan interest rate is not the main factor that motivates young people to buy a house or not. Many people are not interested in borrowing because real estate prices are too high, beyond the large financial capacity. “The interest rate is reduced but there is no suitable product to buy, people also do not need to borrow capital,” he said.

Mr. Dinh Minh Tuan, Director of Batdongsan in the South, informed last year, about 56% of people looking for a house on the foundation of the desire to buy an apartment for less than 2 billion dong. However, the number of apartments for sale in this price range in the market is only 17%. Ho Chi Minh City currently has 12 projects opening for sale, of which the price is under 60 million VND per m2 only 3 projects, the remaining from 88-250 million VND per m2. With this price, there are not many options for young people, middle -income, low -income people.

According to Mr. Tuan, the average income per capita of Vietnam in 2024 from 9.5 million VND. According to the current house price, a 60 m2 apartment costs about 4 billion VND, although in the condition of the long-term preferential interest rate of 7-8%, a young person needs to accumulate at least 30 years to buy.

Discussing solutions to increase home buying chances for young people, Dr. Can Van Luc suggested that besides interest rate incentives, businesses need to strive to reduce or stabilize real estate prices in some projects, division Through the appropriate forms of promotion, accepting smaller but sustainable profit margins. Businesses need to structure supply, focusing on developing products suitable to the long -term settlement needs of the majority of people.

Similarly, Mr. Le Hoang Chau, Chairman of Ho Chi Minh City Real Estate Association (HoREA), said that interest rates and housing prices need to go on to solve the problem of settling for young people. He cited, the price of new apartments in Ho Chi Minh City in 2024 was an average of more than 9 billion VND each, at this level, although the interest rate decreased by 5-6%, it was difficult for young people to borrow.

In a recent proposal on home loan policy, the Association asked the State Bank to consider the credit preferential mechanism from 6-7% for young groups (aged 18-45) to buy a home for the first time. and applied to commercial housing projects in the affordable price segment (around VND 2 billion).

According to Mr. Chau, now most young people or middle -income people can only afford to buy affordable housing projects. But this is the segment that is less interested by investors, the shortage of supply is in Hanoi and Ho Chi Minh City. Therefore, besides creating a favorable mechanism for young workers to buy houses, it is necessary to encourage businesses to participate more in the development of affordable housing housing. This also helps the structure of the real estate market safely, healthier and more sustainable.