The 'hot' time of savings interest rates is over, where is the money flowing?

Interest rates are no longer attractive

Recently, the deposit interest rates of banks have remained at the lowest level in the past two years. This has occurred in the context of the State Bank continuing to firmly pursue the goal of stabilizing interest rates and supporting credit growth, an orientation that has been affirmed throughout policy statements and management actions since the beginning of this year.

According to a survey by PV, the average interest mobilization rate remains below 6%/year for a 12-month term. The average interest mobilization rate at banks has decreased by 6-7%/year compared to the peak in 2023.

Ms. Thanh Tra (Vinh Tuy ward, Hanoi ) said that she had just closed her savings account to buy real estate. "I chose real estate that could be rented out immediately instead of buying land. Waiting for land prices to increase will take a long time, and it will not generate cash flow immediately. I bought an apartment and rented it out to create a steady monthly cash flow, earning money equal to the interest rate of savings and owning a house."

The 'hot' time of savings interest rates is over, where is the money flowing? photo 1

Real estate creates stable cash flow and is "attracting" investors.

Mr. Le Dinh Chung - General Director of SGO Homes - said that currently, up to 78% of investors are interested in preserving and making a profit from cash flow, the rest are other opportunistic factors. The trend of cash flow is very clear, after 2022 to early 2025, investors will focus on two main segments.

Paradoxically, real estate creates cash flow with products that can be rented out immediately and generate stable profits; the second is urban real estate to meet the needs of housing, utilities, and can be exploited long-term.

"Many investors carefully study macroeconomic indicators, local development strategies, along with factors such as migration, population movement and urbanization speed. They prioritize provinces that have invested heavily in infrastructure, production facilities - especially industry; localities that are well connected through main traffic routes and have a population density and urbanization large enough to ensure liquidity," said Mr. Shared.

Investors will be selective

Dr. Le Xuan Nghia - Director of the Institute of Development Consulting - assessed that savings interest rates are no longer so attractive, people tend to look for more effective investment channels and real estate is still considered a potential investment channel.

“A reputable construction enterprise, transparent and effective project promotion will be the key to attracting capital from the people,” said Mr. Nghia.

Speaking to Tien Phong reporter, Dr. Tran Xuan Luong - Deputy Director of the Vietnam Real Estate Market Research and Evaluation Institute - said that the market currently has too many variables. Geopolitical instability, the unpredictability of US tariff policies, and complex fluctuations in the macro economy can cause the real estate industry to follow unexpected trajectories.

"In the first and second quarters of this year, real estate prices have been pushed to very high levels, exceeding the forecasts of many experts. This will push the real estate market into a state of liquidity risk. Normally, in the last months of the year, investors will use the money accumulated throughout the year to invest in real estate. However, the situation may be different this year," said Mr. Luong.

According to this expert, the actual price of apartments or land is still high. This is the reason why many investors are afraid to invest because they are afraid of "catching the peak". Even the proposals to tax abandoned real estate and collect tax on the difference between transactions have made investors more cautious.

"However, investment will be selective. Products that generate cash flow, have good legal status and reasonable prices will be reasonable and safe choices for real estate buyers at this time. However, the number of such projects can be counted on the fingers of one hand," said Mr. Luong.

The Impact 2025 report from Savills points out that the sustainable growth cycle that once made real estate a popular source of income has now stalled. As a result, the passive investment model, which relies on financial leverage and yield margins, is no longer as effective as before. In this trend, investors need to shift to an active strategy, based on core cash flow, asset performance and long-term orientation.

Ngoc Mai

Source: https://tienphong.vn/het-thoi-nong-lai-suat-tiet-kiem-dong-tien-dang-do-vao-dau-post1757712.tpo