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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Real Estate Briefing: Land Prices Decline, Social Housing Reaches 77% of Target and Key Market Developments

Vietnam’s real estate market is showing clear signs of divergence. The sharp decline in property transactions is not necessarily caused by the Ghost Month, but is mainly linked to financial leverage pressures and changes in macro-level planning. The Ministry of Construction said land plot prices reversed in the second quarter after a prolonged increase, with average asking prices of around VND 40 million per square meter. Villas and townhouses in many localities were also adjusted. Secondary apartment prices declined, but the average price in Hanoi remained around VND 123 million per square meter, while liquidity continued to weaken and inventories increased.

In the social housing segment, the project to develop one million homes has reached 77% of its target in terms of projects completed, launched or approved in principle. To accelerate the remaining phase, resources from land funds, rental housing and credit need to be expanded. In Hanoi, the Dong Truc social housing project in Thach That, about 5 km from Hoa Lac Hi-Tech Park, is expected to receive 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 has remained almost stagnant more than seven months after its groundbreaking, and its developer was fined VND 85 million for delays.

In Ho Chi Minh City, authorities approved an auction plan for the former Binh Chanh Hospital site, with a starting price of more than VND 370 billion, while also preparing to auction several prime land lots in the central area. The city’s 100-year planning vision places transport infrastructure, particularly public transport and metro lines, at the forefront of urban and residential development. Other land management issues are also drawing attention, including a proposal to compensate developers for operating time lost during 10 to 15 years of procedural and legal delays on projects granted 50-year land-use terms. Ca Mau is leasing some surplus public offices and properties on a short-term basis, with the lowest price at just over VND 1,200 per square meter. From September 1, electronic location identification codes for individual land plots on VNeID are expected to reduce paperwork and shorten the time needed for property-related administrative procedures. Internationally, Brookfield has purchased real estate in Japan, while new apartment prices in Tokyo’s 23 central wards rose 96% in July to a record 265.2 million yen, or about USD 1.7 million. In China, Shanghai lowered home purchase down-payment requirements and introduced direct cash subsidies to stimulate demand, while Evergrande founder Hui Ka Yan was sentenced to life imprisonment and had all his assets confiscated.

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