Daily real estate briefing: Rising supply, slower apartment price growth and strong social housing demand

The real estate market continues to see notable developments as supply rises sharply after a prolonged period of compression. Nearly 100,000 products have been introduced to the market, raising concerns about oversupply, although liquidity at many new projects shows that demand for quality products remains. In Ho Chi Minh City, apartment price growth is slowing as supply improves and purchasing power weakens, while forecasts suggest that a significant correction could emerge between 2028 and 2030. Hanoi is also expected to enter a period of adjustment and clearer market segmentation over the next two years. In the social housing segment, more than 12,000 people registered to compete for 750 apartments, highlighting strong demand while developers continue to face obstacles related to capital, profit margins, procedures and land funds. In Me Linh, the Minh Duc social housing project includes 612 apartments, of which 551 are expected to be offered for sale at an estimated price of nearly ...
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Daily Real Estate Briefing: High Apartment Prices, Rising Credit and a Push for Social Housing Supply

The domestic real estate market is seeing notable developments in prices, credit and supply. According to the latest data from the Ministry of Construction, apartment prices in Hanoi and Ho Chi Minh City remain high, averaging about VND 123 million per square meter and VND 108 million per square meter, respectively. Although secondary apartment prices in Hanoi declined in the second quarter, market liquidity continued to weaken and inventories increased. Land prices also turned downward after a prolonged period of growth, with asking prices averaging around VND 40 million per square meter. Villas and townhouses in several localities were also adjusted. In contrast, outstanding credit for real estate business rose by more than VND 284 trillion in the second quarter, exceeding VND 2.5 quadrillion. Loans for land-use rights purchases increased by more than 23%.

High interest rates are making homeownership more difficult, even though 97% of renters still aspire to own a home. Many families are choosing to continue renting in order to preserve their capital. In the social housing segment, the plan to develop one million homes has reached 77% of its target, but additional resources from land funds, rental housing and credit are needed to accelerate the remaining phase. A project in Dong Truc, Thach That, about 5 kilometers from Hoa Lac Hi-Tech Park, is expected to begin accepting applications in the third quarter, with apartment prices starting at around VND 870 million. Meanwhile, the Phu Tai Loc social housing apartment project in Gia Lai was fined VND 85 million for delays more than seven months after groundbreaking. Ho Chi Minh City has also approved an auction plan for the former Binh Chanh Hospital site, with a starting price of more than VND 370 billion, and plans to auction several other prime land lots in the central area.

In addition to prices and supply, condominium management, construction safety and operations remain key concerns. Hanoi has requested an inspection of cracks and subsidence at the Hanoi Homeland apartment complex, an assessment of structural risks and a suspension of nearby construction if serious safety risks are identified. Gaps in the management, ownership and operation of apartment buildings are also contributing to a rise in disputes. Internationally, foreign capital is returning to China’s real estate market to test new valuation levels. Japan is becoming a notable destination after Brookfield acquired property there, while prices of new apartments in Tokyo’s 23 central wards rose 96% in July to a record JPY 265.2 million, equivalent to about USD 1.7 million. In the United States, factory-built housing is expected to gain momentum under a law designed to reduce construction costs.

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