According to "The announcement of the housing and real estate market in the fourth quarter and the year 2020" report by the Ministry of Construction, in the fourth quarter of 2020, bank credit for real estate loans recorded growths. It proved that the market is still growing, and there is no sudden movement of investment capital flows.
The credit balance for real estate investment and trading in 2019 reached 521,821 billion VND, increased to 526,396 billion VND and 580,168 billion VND in the first quarter and second quarter of 2020, respectively. By the third quarter, it reached VND 606,253 billion, and by the end of the fourth quarter, it was VND 633,740 billion.
While the growth rate of credit balance in 2019 reached 4.36%, it was only 0.88%in the first quarter of 2020. The Ministry of Construction explained that this was the most challenging period during the Covid-19 pandemic, and the real estate market didn't change much compared to the same period every year.
In the second quarter of 2020, the real estate credit balance of businesses increased significantly, the real estate market began to have more improvement in transactions. Thus, the credit balance of the following quarters gradually increased.
In the third quarter of 2020, the real estate credit balance of businesses increased by 4.3% compared to the second quarter, and in the fourth quarter, it increased by 4.53% compared to the third quarter.
The Ministry of Construction said that the main source of capital for the real estate market was bank credit. It also attracted other sources such as personal investment capital, remittances, and capital from issuing shares and bonds of listed companies and FDI capital in 2020.
Meanwhile, the total outstanding loans of the whole industry increased from 8.2 million billion VND in 2019, and to 8.8 million billion VND at the end of 2020. The proportion of outstanding real estate loans for the whole industry reached 7.2%.
Recently, the State Bank issued a proposal to delay the roadmap for applying the maximum rate of short-term capital for medium and long-term loans. Accordingly, from the beginning of 2020 to the end of September 30, 2020, the ratio of short-term capital for medium and long-term loans decreased from 45% to 40%.
In fact, with new regulations on reducing the ratio of short-term capital for medium and long-term loans, credit demand, in general, declined due to the Covid-19 pandemic but real estate credit still maintains its growth.
Through surveys, several banks are starting to lower interest rates for home loans. For VPBank, it's from 5.9% per year for the first 3 months, 7.9% per year for 6 months, or 8.9% per year for the first 12 months.
BIDV from 7.6% per year in the first 12 months or 9.2% per year for the first 36 months.
Vietcombank from 6.79% per year, fixed in the first 6 or 12 months.
In conclusion, compared to the end of 2019, the first year fixed home loan interest rate was lower. According to banking experts, the current time tends to decrease to the lowest level in the past ten years.
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