Ministry urges loosened credit for real estate sector

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Báo Dân Trí English - 40 month(s) ago 14 readings

Ministry urges loosened credit for real estate sector

The Ministry of Construction has proposed the Government instruct credit organisations to loosen loans for some of real estate segments.

The Ministry of Construction has proposed the Government instruct credit organisations to loosen loans for some of real estate segments.

According to the ministry, property projects with high liquidity and those for low-income earners should be offered loans. People who have real demand for accommodation should be also included in the priority list.

However, the ministry has recommended restrictions on loans as compensation for site clearance, luxury real estate projects with prices of over VND30 million (USD1,442) per square metre or those covering an area of more than 120 square metres and newly-started projects, except for social housing projects.

The Ministry of Construction has recommended that the Ministry of Finance submit a decree on the Law on Non-agricultural Land Use to the Government in the fourth quarter of this year to constrain land speculation.

It has also proposed that the Ministry of Finance revise regulations on personal income tax in real estate transactions.

The Ministry of Planning and Investment has been recommended to work with other ministries and agencies to check the compliance of foreign-invested real estate projects with the law.

Credit organisations have restricted loans to non-manufacturing sector, including real estate, to curb credit growth at below 20% this year, following a Government recommendation.

However, the move has caused difficulties for the property sector. Many real estate projects have been delayed or have slowed construction due to capital shortages.

Many investors have had to reduce their project prices, but remain unable to attract customers.

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