{"id":17584,"date":"2025-10-10T21:16:43","date_gmt":"2025-10-10T14:16:43","guid":{"rendered":"https:\/\/arcadiaconsult.com.vn\/?p=17584"},"modified":"2025-10-10T21:16:43","modified_gmt":"2025-10-10T14:16:43","slug":"vietnams-real-estate-market-eyeing-loan-to-value-caps-for-second-homes","status":"publish","type":"post","link":"https:\/\/arcadiaconsult.com.vn\/en\/vietnams-real-estate-market-eyeing-loan-to-value-caps-for-second-homes\/","title":{"rendered":"VIETNAM&#8217;S REAL ESTATE MARKET: EYEING LOAN-TO-VALUE CAPS FOR SECOND HOMES"},"content":{"rendered":"<p style=\"text-align: justify;\"><span style=\"color: #000000;\">Vietnam\u2019s Ministry of Construction is proposing strict loan-to-value caps, including 50% for second homes and 30% for third and subsequent purchases to deter speculation and restrain prices. The measures appear in a draft resolution on real estate price control sent to ministries for comment. The package works on three fronts: tighter mortgages for multi-home buyers, regulated real estate trading centers, and more commercially built, reasonably priced housing.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000000;\">Today, banks commonly lend 70%\u201380% of collateral value. Developers often take 10%\u201330% down, enabling 70%\u201390% leverage sweetened by interest-free and principal-grace promos that investors have used to hoard and flip units. Credit exposure is swelling. Housing-related loans totaled roughly VND 4 quadrillion as of end August, up 19% from a year earlier, State Bank of Vietnam data show.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000000;\">Why the clampdown: housing and banking are tightly linked, and prices have outrun incomes. In Hanoi, apartments average VND 70\u201380 million per sqm, up 5.6% year-to-date; townhouses and villas fetch VND 100\u2013200 million. In Ho Chi Minh City, apartment prices jumped from ~VND 35 million to\u00a0 more than VND 91 million per sqm between 2018 and 2024, about a 160% gain while per-capita income rose only 6%\u20137% annually, eroding affordability.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000000;\">Vietnam\u2019s 2023 Housing Law opens the door to foreign buyers, including allowing purchases, lease-purchases, gifts and inheritance while imposing tight quotas and time limits: holdings are capped at 30% of units in any condominium and up to 250\u00a0individual\u00a0houses in ward-equivalent area; tenure is leasehold only, limited to 50 years with possible renewal, and confers no perpetual land-use rights.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000000;\">Policymakers say Vietnam\u2019s market tools such as tax, credit, planning, state land pricing remain patchy, allowing speculation and hype to overshadow real supply\u2013demand. The ministry calls targeted price-restraint measures \u201cnecessary\u201d to stabilize a market that\u2019s increasingly out of reach for younger households and urban workers.<\/span><\/p>\n<p><a href=\"https:\/\/arcadiaconsult.com.vn\/en\/product-category\/property-sales\/\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-17597\" src=\"https:\/\/arcadiaconsult.com.vn\/wp-content\/uploads\/2025\/10\/hanoi-2.jpg\" alt=\"\" width=\"2400\" height=\"1300\" srcset=\"https:\/\/arcadiaconsult.com.vn\/wp-content\/uploads\/2025\/10\/hanoi-2.jpg 2400w, https:\/\/arcadiaconsult.com.vn\/wp-content\/uploads\/2025\/10\/hanoi-2-1000x542.jpg 1000w, https:\/\/arcadiaconsult.com.vn\/wp-content\/uploads\/2025\/10\/hanoi-2-300x163.jpg 300w, https:\/\/arcadiaconsult.com.vn\/wp-content\/uploads\/2025\/10\/hanoi-2-1024x555.jpg 1024w, https:\/\/arcadiaconsult.com.vn\/wp-content\/uploads\/2025\/10\/hanoi-2-768x416.jpg 768w, https:\/\/arcadiaconsult.com.vn\/wp-content\/uploads\/2025\/10\/hanoi-2-1536x832.jpg 1536w, https:\/\/arcadiaconsult.com.vn\/wp-content\/uploads\/2025\/10\/hanoi-2-2048x1109.jpg 2048w\" sizes=\"auto, (max-width: 2400px) 100vw, 2400px\" \/><\/a><\/p>\n<p style=\"text-align: left;\"><span style=\"color: #000000;\"><strong>A CAUTIOUS SCAN OF WHAT PEER MARKETS HAVE DONE TO REIN IN DEMAND FOR SECOND AND FURTHER HOMES<\/strong><\/span><\/p>\n<p><span style=\"color: #000000;\"><strong>Singapore<\/strong>: Heavy stamp duties and multi-layered hard credit caps is a well-tested combination that dampens leveraged investor demand while preserving first-home access.<\/span><\/p>\n<ul>\n<li><span style=\"color: #000000;\">ABSD: Since 27 Apr 2023, a Singapore citizen\u2019s 2nd home = 20% ABSD; 3rd+ = 30%. PRs: 2nd = 30%, 3rd+ = 35%. Foreigners: 60%. Entities 65% (developers: 35% + non-remittable 5%).\u00a0<\/span><\/li>\n<li><span style=\"color: #000000;\">Credit caps: TDSR capped at 55% of gross monthly income (tightened from 60% in Dec 2021). Tiered LTVs from banks fall as you hold more mortgages (commonly 45% on a 2nd loan; 35% on a 3rd+ if tenure \u226430 years, lower if longer). HDB loan LTV aligned to 75% (Aug 2024).<\/span><\/li>\n<\/ul>\n<p><span style=\"color: #000000;\"><strong>Thailand<\/strong>: Temporary LTV relaxation instead of tightening to support a weak market.<\/span><\/p>\n<ul>\n<li style=\"text-align: justify;\"><span style=\"color: #000000;\">The Bank of Thailand (BOT) tightened LTVs effective 1 Apr 2019, introducing higher down-payments for additional mortgages. By Jan 2020, BOT fine-tuned the rule: for second homes &lt; THB 10m, 10% down if the first mortgage has been serviced \u22652 years, otherwise 20%; third+ homes generally 30% down (\u2248 70% LTV). This directly targets leveraged repeat buyers.<\/span><\/li>\n<li style=\"text-align: justify;\"><span style=\"color: #000000;\">To aid a slumping property sector, BOT temporarily lifted LTVs up to 100% for loan contracts signed from 1 May 2025 to 30 Jun 2026, including second homes under THB 10m, and first homes above THB 10m. <\/span><\/li>\n<li style=\"text-align: justify;\"><span style=\"color: #000000;\">Anti-flip transaction tax (Specific Business Tax, SBT): 3.3% is generally payable when an individual sells within 5 years of acquisition (with listed exemptions), discouraging quick resales that often accompany speculative 2nd\/3rd purchases.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"color: #000000;\"><strong>South Korea<\/strong>: Targeted, very tight local LTV for multi-homeowners to rapidly cool transactions in hot spots, and require careful calibration to avoid spillovers.<\/span><\/p>\n<ul>\n<li style=\"text-align: justify;\"><span style=\"color: #000000;\">In 2025, authorities suspended\/near-zeroed LTV for additional-home purchases in designated speculative zones of Seoul; subsequently tightened LTV to 40% in affluent districts.<\/span><\/li>\n<\/ul>\n<p><span style=\"color: #000000;\"><strong>Taiwan (China)<\/strong>: Selective credit controls to reduce speculative borrowing, especially in the big eight cities.<\/span><\/p>\n<ul>\n<li style=\"text-align: justify;\"><span style=\"color: #000000;\">Since 2020, multiple rounds: lower LTVs for 2nd loans (e.g., 60% in major cities; 50% nationwide from Sept 2024 for borrowers with one outstanding housing loan), and 30% LTV caps for 3rd+ loans\/high-value homes, no grace periods, tighter rules in major metros.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: left;\"><span style=\"color: #000000;\"><strong>United Kingdom (England &amp; North Ireland)<\/strong>: Higher SDLT on additional dwellings is simply administer and raises revenue; has limited impact on all-cash buyers.<\/span><\/p>\n<ul>\n<li><span style=\"color: #000000;\">From 31 Oct 2024, the surcharge on 2nd homes rose from 3% \u2192 5%, applied on top of the standard SDLT bands (now 5%, 7%, 10%, 15%, 17%).\u00a0<\/span><\/li>\n<li><span style=\"color: #000000;\">Scotland (separate system): Additional Dwelling Supplement = 8% from 5 Dec 2024 (up from 6%).\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"color: #000000;\"><strong>Canada<\/strong>: Foreign-buyer ban and vacancy\/underuse taxes<\/span><\/p>\n<ul>\n<li><span style=\"color: #000000;\">Foreign-buyer ban extended to Jan 1, 2027.<\/span><\/li>\n<li><span style=\"color: #000000;\">Federal Underused Housing Tax: 1% annual levy on vacant\/underused housing (primarily non-residents).<\/span><\/li>\n<li><span style=\"color: #000000;\">Municipal vacancy taxes: e.g., Vancouver Empty Homes Tax = 3% (kept at 3% after a proposed 5%).<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Vietnam\u2019s Ministry of Construction is proposing strict loan-to-value caps, including 50% for second homes and 30% for third and subsequent purchases to deter speculation and restrain prices. The measures appear in a draft resolution on real estate price control sent to ministries for comment. The package works on three fronts: tighter mortgages for multi-home buyers,&#8230;<\/p>\n","protected":false},"author":3,"featured_media":17594,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[93,94],"tags":[],"class_list":["post-17584","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","category-real-estate-news"],"acf":[],"_links":{"self":[{"href":"https:\/\/arcadiaconsult.com.vn\/en\/wp-json\/wp\/v2\/posts\/17584","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/arcadiaconsult.com.vn\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/arcadiaconsult.com.vn\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/arcadiaconsult.com.vn\/en\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/arcadiaconsult.com.vn\/en\/wp-json\/wp\/v2\/comments?post=17584"}],"version-history":[{"count":5,"href":"https:\/\/arcadiaconsult.com.vn\/en\/wp-json\/wp\/v2\/posts\/17584\/revisions"}],"predecessor-version":[{"id":17599,"href":"https:\/\/arcadiaconsult.com.vn\/en\/wp-json\/wp\/v2\/posts\/17584\/revisions\/17599"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/arcadiaconsult.com.vn\/en\/wp-json\/wp\/v2\/media\/17594"}],"wp:attachment":[{"href":"https:\/\/arcadiaconsult.com.vn\/en\/wp-json\/wp\/v2\/media?parent=17584"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/arcadiaconsult.com.vn\/en\/wp-json\/wp\/v2\/categories?post=17584"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/arcadiaconsult.com.vn\/en\/wp-json\/wp\/v2\/tags?post=17584"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}