Social housing buyers can borrow at 8.2% interest rate

By Minh Son   April 3, 2023 | 05:56 pm PT
Social housing buyers can borrow at 8.2% interest rate
A social housing project in Thu Duc City, Ho Chi Minh City, November 2022. Photo by VnExpress/Quynh Tran
Buyers of social housing buyers will be able to borrow from a VND120 trillion ($5.08 billion) government support package at annual interest rate of 8.2%.

From now until June 30, qualifying homebuyers can borrow at the rate for a term of 5 years, according to the State Bank. Social project developers will be charged an annual rate of 8.7% for 3 years.

Qualified borrowers include social housing property developers and social housing project homebuyers, as well as buyers and developers of workers’ housing, and in the renovation and reconstruction of old apartment buildings.

Each homebuyer is allowed to borrow from the package only once to buy an apartment among projects on a specified list. Each project developer is also permitted only one load.

The package will be carried out until December 31, 2030, or earlier if loan funds are fully disbursed.

Four state-owned banks had agreed to set aside VND120 trillion for lending to social housing developers and buyers at interest rates that are 1.5-2 percentage points lower than the market average. The central bank has approved the rates.

Under a plan recently approved by Prime Minister Pham Minh Chinh, at least one million social housing units will be built for low-income people by 2030, including 428,000 units to be completed by 2025, at a total cost of VND849 trillion.

Vietnam is estimated to need 2.4 million new social housing units by 2030, including 1.2 million units by 2025.

There are 2.7 million workers at Vietnamese industrial parks, of whom 1.2 million have housing needs.

To date, the country has completed 301 urban social housing projects, including housing for workers in industrial parks, with a total of 155,800 units.

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