No immediate impact on property with gold fluctuation: experts

HA NOI (Homeid) – Some experts have hit out at claims that recent fluctuations in gold prices and interest and exchange rates will immediately impact the property market, according to financial website cafef.vn.

It remains hard for people to take out loans and pay back debt within the VND30 trillion support programme. — File Photo

Economist Vu Dinh Anh said the value of savings remained very great at banks despite the decline in interest rates and the real estate market remained unattractive to investors.

He noted that the establishment of the Viet Nam Asset Management Company and the Government's support package of VND30 trillion (US$1.43 billion) had not yet significantly improved the conditions of the market.

According to Sohovietnam chairman Phan Xuan Can, the property market has hit rock bottom after two years of decline, and although market liquidity has improved recently, high property values mean that spontaneous asset purchases taking advantage of recent fluctuations are still unlikely.

"It depends on the viewpoint of every investor whether recent fluctuations will have a positive effect on the securities and property markets in the long-term." said FLC Securities general director Pham Duc Thang.

Economics expert Bui Kien Thanh said that cheap loans and properties better meeting demand were now needed to prop up an ailing real estate market. "There will be no use reducing the deposit interest rate cap to 7 per cent if lending rates are not adjusted," he argued.

To deal with current problems of the property market, it was necessary to establish investment funds or lending insitutions that could offer interest rates of 2-3 per cent within 20-30 years to help low-income people buy homes, he said.

He added that it remained hard for these people to take out loans and pay back debt within the VND30 trillion support programme, which has an interest rate of 6 per cent. – VNS   

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