Daily Real Estate Brief: Home Prices Outpace Affordability as Hanoi Reviews 250 Projects

Vietnam’s real estate market continues to face a paradox as home prices may equal more than 30 years of income and remain beyond the reach of most residents, while the urban homeownership rate is still among the highest in the world. This pressure is increasingly evident in Hanoi and Ho Chi Minh City, where scarce land, rising input costs and the dwindling supply of affordable apartments are pushing prices higher. At the same time, real estate inventory is tending to increase, highlighting the need to expand supply in line with actual demand. The Ministry of Construction is also clarifying when social housing may be resold after five years and the regulations governing such transfers. In Hanoi, the management and handling of delayed projects and violating buildings remain key priorities. The city is reviewing 250 delayed projects funded outside the state budget, involving approximately 7,013 hectares of land, to mobilize resources for development. Regarding HH Linh Dam apartments, a ...
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Daily Real Estate Briefing: Land Expansion, TOD Development and Rising Legal Pressure

The real estate market continues to record notable developments in Hanoi and Ho Chi Minh City. The Future Red River Group has been allocated an additional 273 hectares of land by Hanoi, bringing the total area allocated after two phases to more than 429 hectares for the development of a nearly 700-hectare multifunctional urban area in the north of the capital. Meanwhile, Ho Chi Minh City plans to use public investment capital to implement independent projects and establish land funds around metro stations under the TOD model, while allowing investors to propose project scales from the planning stage. Together with Ring Road 3, the highway and metro networks are expected to improve connectivity from northeastern Ho Chi Minh City to Long Thanh International Airport, the Cai Mep - Thi Vai port complex and Vung Tau Ward.

In the housing segment, real estate prices are considered unlikely to fall sharply even though home loan interest rates remain above 11% per year. Competitive interest rate signals and discounted properties are providing buyers with additional options, as they increasingly prioritize properties suitable for living, business or rental purposes rather than simply following price waves. In Ho Chi Minh City, several townhouses priced at tens of billions of dong have been discounted by 10 to 16 billion dong but remain difficult to sell because prices are still high and sellers face heavy financial pressure. In Da Nang, the growth in international visitors is creating room for the accommodation market, particularly commercial service apartments along the Han River that attract investors due to their profit potential.

Alongside infrastructure opportunities, legal issues and transaction transparency remain major concerns. The Binh Hoa Ward People’s Committee has asked the Ho Chi Minh City Department of Construction to inspect and handle agreements and transactions related to the A&T Saigon Riverside project following a collective complaint from residents. Several customers said they had paid 300 to 600 million dong in priority purchase deposits and were concerned about losing the money after their agreements were terminated because they requested full legal documents. Ho Chi Minh City has also fined Ly Khuong Trading Manufacturing Company 900 million dong for violations in real estate business activities involving 682 apartments at Dream Home Riverside. In addition, draft regulations on land and housing, old apartment building redevelopment, renovations of violating houses and the State’s potential acquisition of stalled real estate projects continue to attract public attention, while questions over valuation bases and subsequent operating plans remain unresolved.

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