Real Estate News Digest: Resort Credit Rises, Old Apartments Stay Expensive and Social Housing Gains Attention

The real estate market continues to record notable developments in major urban areas. In Ho Chi Minh City, outstanding credit for hotels, restaurants, tourist areas and resort properties reached VND 30 trillion by the end of August, up 12.5% year on year. The State Bank of Vietnam also allowed the additional outstanding loans of these sectors to be excluded from real estate credit balances during the year. Meanwhile, prices at many old apartment buildings, particularly walk-up residential blocks in central areas, remain high, with some listings reaching VND 100 million per square meter despite deteriorating infrastructure, a lack of elevators and limited parking. These properties continue to command high prices because of their prime locations.

The renovation and handling of deteriorating residential areas remain a focus. At HH Linh Dam, the plan to address violations and remedy consequences at 12 housing projects connected to businesses within the Muong Thanh Group ecosystem is expected to proceed in three phases, from establishing a special mechanism to relocation and demolition. The space created after demolition is expected to be prioritized for community facilities, cultural and educational institutions, technical infrastructure and parking. Ho Chi Minh City is also dealing with numerous apartment buildings more than 50 years old that have deteriorated. Some residents have been relocated, while other communities continue to live and conduct business in the buildings. In Hanoi, a new proposal could remove the maximum five-year existence limit for structures granted time-limited construction permits. Newly built houses would be proposed at no more than four floors and below 18 meters in height.

In the social housing segment, demand remains substantial, with more than 3 million households identified as needing this type of housing. Proposals include developing rental social housing while strengthening oversight to prevent policy abuse and illegal brokerage. In Can Tho, authorities have asked social housing developers to coordinate with the Department of Construction and relevant agencies. Elsewhere, Lam Dong granted investment certificates to three projects worth VND 630 billion in industrial parks and announced a target of developing 35 industrial parks by 2030. In Hue, several prime central land plots offered for auction have yet to attract much investor interest. The Dong Tang Long new urban area is expected to benefit from transport infrastructure investment and development linked to public transit, while the Phu Ly area is drawing attention as its urban space expands and infrastructure and amenities gradually improve.