The local realty sector, after having a representative propose an
unfeasible plan aimed at lightening their burden of unsold inventories, might
breathe a sigh of relief as the state will try to support it with a new relief
package.
The State Bank of Vietnam (SBV)
last week announced a draft circular stipulating regulations on lending
operations to support the real estate market.
The draft document is a follow-up
to the government’s Resolution No 02/NQ-CP dated January 7.
Under the draft law, the central
bank will set aside VND30 trillion (USD1.43 billion) to support five
state-owned commercial banks, including Agribank, BIDV, Vietinbank, Vietcombank
and Mekong Housing Bank, to lend to eligible borrowers through refinancing.
To carry out the policy, those
state-owned commercial banks will have to spare at least 3 percent of the total
outstanding loans as of the end of last year to lend to civil servants and
state employees, those working in the armed forces, and low-income earners so
that they can buy houses.
The loans will also be available
to businesses that are investors in social housing projects, and businesses
that are investors in commercial housing projects being allowed to transform
into social housing ones.
The assistance package with a
stable lending interest rate of 6 percent per year will be disbursed from April
15, 2013 to April 15, 2016, after which borrowers will continue to enjoy
preferential interest rates that will be announced by the central bank.
A minimum loan term for house
buyers and renters will be 10 years, and it will be five years for corporate
customers.
Regarding loan value, house
buyers/renters can borrow at least 80 percent of the value of the house they
intend to buy/rent, while corporate customers can borrow up to 70 percent of
their borrowing proposal.
HCMC helping hand
Ho Chi Minh City, which has a
huge volume of unsold property stocks, has also released a draft document in
support of the realty sector.
Accordingly, up-and-running
commercial housing projects which want to be transferred into social housing
must sell for no more than VND12 million ($573) per m2, inclusive of VAT.
The selling price is set on the
construction cost (excluding land use fees), lending interest rate and profit
level of the entire project (not more than 5 percent of the total cost),
according to the HCMC Department of Construction.
Moreover, for commercial housing
apartments with a floor area greater than 70m2, the maximum area for social
housing apartments as prescribed, the area within the 70 m2 cap will be sold at
that price, while the additional floor area will have the land use fees added.
Project investors will sell
directly to the aforementioned eligible objects that get the approval from a
city’s social housing assembly.
If investors do not want to turn
projects into social housing, they can consider subdividing the floor areas of
their apartments.
Low-income earners, civil
servants, officials, and those working in the armed forces will be supported by
low-interest loans if they decide to rent or buy an apartment with a floor area
of less than 70m2 worth a maximum of VND15 million per m2.
However, city authorities are not
considering the switch from commercial houses to social housing and
resettlement housing for the projects that have not started.
According to the department, the
total unsold stock in HCMC is about 14,500 apartments, more than 300,000m2 of
land and about 58,800m2 of commercial offices for leasing, with an estimated
total value of over VND30.4 trillion.
The Ministry of Construction has
issued the Circular 02/2013/TT-BXD to adjust the housing structure of
commercial houses and the transfer of commercial houses into social housing
projects.
Accordingly, the Ministry of
Construction requires that subdividing houses must ensure safety and
conveniences for customers and have enough space for living.
The adjustment of housing
structures and the conversion of commercial houses into social houses only
applies for building projects which do not have capital contribution or selling
and buying contracts.
If those contracts were signed,
it is necessary to have a written agreement between all the customers before
carrying out the adjustment.
The Circular also emphasizes the
benefits of businesses which convert their projects into social houses.
Accordingly, businesses will be repaid
money or have funds deducted from their financial obligations which investors
have to hand over to the government.
The circular will take effect
from April 22, 2013 to December 31, 2014.
TUOI TRE
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