Interest rate increase likely to affect housing market hinh anh 1Illustrative image (Source: VNA)

Hanoi (VNA) – Raising deposit interest rates may affect the real estate market, heard a press conference organised by the Commercial Real Estate Services (CBRE) Vietnam in Hanoi on March 27.

CBRE Vietnam Managing Director Marc Townsend said many commercial banks in Vietnam have raised long-term deposit interest rates by 1-2 percent to up to 9.2 percent when the US Federal Reserve (FED) increased the interest rate in March.

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

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

Vietnam is one of the two biggest spenders in infrastructure development in the region, said CBRE.-VNA