The disbursement of the housing stimulus package, valued at 30 trillion VND (1.4 billion USD) in preferential loans, will finish on schedule, according to the State Bank of Vietnam (SBV).
Hanoi (VNA) - The disbursement of the housing stimulus package, valued at30 trillion VND (1.4 billion USD) in preferential loans, will finish onschedule, according to the State Bank of Vietnam (SBV).
SBV’s statistics showed that, as of the end of November, 29.239 trillion VNDhad been disbursed, with outstanding loans remaining at 24.116 trillion VND.
The disbursement is now being hastened and will finish by the end of thismonth.
The central bank said the housing stimulus package significantly contributed tothe recovery of the property market, reducing stockpiles, removing difficultiesfor developers, as well as for the recovery of the economy.
Of note, the package enabled more than 50,000 households to purchase affordablehomes.
Nearly 86 percent of the preferential loan package was provided to buyers.Disbursements for buyers are to continue until the end of the year, thoughdisbursements ended for developers on June 1.
A total of 5.395 trillion VND from the package was provided to developers.
The housing stimulus package began on June 1, 2013, with the aim to encouragedevelopment and purchase social housing projects and affordable homes,providing impetus to the stagnant real estate sector.
Disbursements from the package were previously scheduled to finish by June1, but due to disappointing results the Government extended the deadlineuntil the end of this year.
After the 30 trillion VND package, the property market is still awaiting newloan packages for social and affordable housing.
In June, the Prime Minister decided upon a preferential lending interest rateof 4.8 percent for social housing purchases, to be offered by the Bank forSocial Policies by December 31. Although the deadline nears, preferentialloans remained inaccessible due to the shortage in sources of capital.-VNA
Vietnamese shares struggled to stay positive for a fourth day on both local exchanges as property firms made gains on the central bank’s proposal to extend the housing stimulus package.
More than 28 trillion VND (1.25 billion USD) was disbursed from the 30 trillion VND housing stimulus package up till the end of August, according to the Ministry of Construction.
Though the real estate market is said to be in a rather strong growth phase, it is still showing signs of slowing down and some unstable aspects, which could badly affect it if they are not addressed.
Two new preferential loans, unrestricted by scale and deadline, for social housing and cheap commercial housing projects will be provided to low-income earners. The new packages are expected to continue the 30 trillion VND housing stimulus package.
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Illustrative image (Photo: realimes.vn) 
