Daily Real Estate Briefing: New Policies, Urban Planning and Bond Maturity Pressure

The day’s key real estate developments center on policy and planning measures in major cities. The Government has assigned the Ministry of Construction to report in November on housing supply, liquidity, prices, transactions and property inventory, providing an overall update on the market’s health. In Ho Chi Minh City, authorities have proposed support for people who purchased houses or land through handwritten documents between after July 1, 2014 and before August 1, 2024, with support equivalent to land compensation when the property is recovered. The city is also considering land-rent exemptions, tax incentives and shorter procedures for outlet shopping center projects, while accelerating public investment disbursement and key projects such as the Moc Bai Expressway, Metro Line 2 and the Xuyen Tam Canal. In addition, four land lots in Thu Thiem, with a total area of nearly 43,000 square meters, have been allocated to Dai Quang Minh Company to settle the BT contract for the Thu Thie...
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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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