Daily Real Estate Briefing: Social Housing, Urban Planning and Financial Pressures

Vietnam’s real estate market saw notable developments in social housing, planning and corporate activity. The Government has proposed that buyers of social housing may resell their homes only to eligible buyers five years after fully paying for the property and receiving the ownership certificate. However, access to the policy remains a major issue, as nearly half of the 500 surveyed construction workers had not obtained information about their rights, support contacts or application procedures for social housing. In the luxury segment, apartments in Thu Thiem are commonly priced at 200 million to 500 million VND per square meter, with many units priced above 100 billion VND. In Ho Chi Minh City, apartment prices along Metro Line 1 have continued to surge after nearly two years of operation, with some projects recording increases of more than 400%, making housing near stations increasingly difficult for low-income earners to afford. Regarding planning and projects, Da Nang’s master p...
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Daily Real Estate Brief: Home Price Adjustments, Social Housing Supply and Key Infrastructure Projects

The real estate market is showing mixed developments as primary home prices in several areas nationwide fell by 5-20% in the third quarter, amid rising supply, weakening purchasing power and still-high capital costs. In Ho Chi Minh City, demand is concentrated in apartments priced at around VND 3 billion, while new supply is mainly high-end housing priced at VND 7-8 billion, reducing market absorption. Financial pressure has also prompted a developer to accept selling land plots for VND 10-12 million per square meter, below a construction cost of nearly VND 20 million per square meter, while being willing to offer discounts of up to 20% to recover capital. A representative of the Ministry of Construction said homebuyers purchasing for their own use should not wait too long for prices to reach the bottom, but should carefully assess their finances. Meanwhile, interest-rate support from banks and developers has not been enough to revive transactions, as the housing market declined by 36% and floating interest rates reached 16-17% per year at times. For young people saving VND 10 million a month, buying a VND 4 billion apartment in Ho Chi Minh City could take more than 30 years. A notable development is that Vietnam now has 947 social housing projects with more than 910,000 units at various implementation stages, including over 216,000 completed units and more than 363,000 under construction.

Other notable developments include QCG shares hitting the ceiling for two consecutive sessions after news that Nguyen Thi Nhu Loan returned to lead Quoc Cuong Gia Lai, lifting the market price to VND 11,000 per share. A company that offered nearly VND 1.1 million per cubic meter to win an auction for sand mine exploitation rights later said it had made a mistake and declined the auction result. Vietnam currently has more than 16,000 branded residences, ranking third globally, alongside rapid growth in the wealthy and ultra-wealthy population. In Quang Tri, Sun Group is studying a series of projects with total investment of VND 200 trillion. Its U Bo Mountain and Thac Chuoi Lake tourism complex alone is expected to have investment of more than VND 16.234 trillion and is completing procedures for a planned groundbreaking on October 30. The launch of projects under Ho Chi Minh City Ring Road 4, including the expressway section from Thay Cai Canal to Hiep Phuoc Port under a public-private partnership model, is expected to strengthen Waterpoint’s interregional connectivity advantages.

In the high-end real estate and living space segment, The Theodore Hanoi stands out with direct views of Hoan Kiem Lake and a stay experience connected to Hanoi’s culture and history, while Ciputra Hanoi continues to retain its appeal after three decades of development. A&K Tower has introduced a model apartment with layouts ranging from studios to three-bedroom units. Water-resistant and antibacterial technological fabric is also being presented as an alternative to leather sofas. Other home-related topics focus on keeping bathrooms and bed linens clean, as well as avoiding placing items that may be damaged or create fire risks near windows.

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