In October 2015, the Central Bank lowered both the interest rate and Reserve Requirement Ratio (RRR) for the fifth time in 2015. The five-year benchmark loan interest rate was lowered by 0.25 percentage point to 4.9%, while RRR was cut by 0.5 percentage point.
The Ministry of Housing and Urban- Rural Development implemented a new policy, allowing cross-city application for mortgage from Housing Provident Fund (HPF). This not only provides an alternative financing tool for home buying in different cities, but also reduces purchaser’s buying costs. It is expected to accelerate the absorption of housing inventories in third and fourth-tier cities by attracting more buyers to enter the market.
Source : Knight Frank