Cheaper Vietnamese Mortgages Signal Property Market Revival

Falling property prices coupled with easier mortgages appear to be boosting the Vietnamese property market. Restrictions on lending were eased by the central bank in February and Vietnamese mortgage lenders have said that they are seeing more mortgage applications coming through, with most of the applications for property in Ho Chi Minh City.

The number of mortgage applications in Vietnam is said to have increased 20% in April from March, with the amount being borrowed up around 15%. The number of people looking to invest in the Vietnamese property market is increasing, helped by the dramatic fall in property prices in the past few months.

Vietnamese property developers are also helping the market, moving away from luxury apartment developments towards more affordable property developments which have a much wider market and allow more people to buy properties. Demand for these more-affordable Vietnamese properties is likely to grow in the next few months whereas luxury developments are likely to remain in their stagnant form.

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