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Interest rate increase likely to affect housing market

Raising deposit interest rates may affect the real estate market, a press conference organised by Commercial Real Estate Services (CBRE) Viet Nam in Ha Noi on Monday heard.


CBRE Vietnam managing director Marc Townsend said many commercial banks in Viet Nam have raised long-term deposit interest rates by 1-2 per cent to up to 9.2 per cent when the US Federal Reserve increased the interest rate in March.


The adjustment will hike pressure on lending interest rate, which can cause negative impact on the housing market, he said, adding that investors may shift their investment to other fields such as the stock market.


According to a survey conducted by CBRE, Viet Nam ranks fourth on the list of the best places to invest in, following Australia, Japan and China.


Viet Nam is one of the two largest spenders in infrastructure development in the region, CBRE said.


Source: Bizhub