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 Briefing: Falling Transactions, High Home Prices and Efforts to Boost Supply

The real estate market continues to show contrasting developments in Hanoi and Ho Chi Minh City. In Hanoi, the primary apartment absorption rate in the third quarter reached only 31%, falling sharply from 70-80% in the same period last year, while the average selling price remained around VND 108 million per square meter. In Ho Chi Minh City, residential transactions also declined by 36% despite banks and developers offering a series of incentives. A major obstacle for buyers is floating interest rates, which have at times reached 16-17% per year. Meanwhile, rapidly rising home prices mean that young people saving VND 10 million a month may need more than 30 years to afford a VND 4 billion apartment in Ho Chi Minh City. The paradox of high housing prices alongside a high homeownership rate in Vietnam continues to raise questions about urban residents' access to housing.

In a notable development, Ho Chi Minh City authorities said that removing obstacles and streamlining procedures had helped increase supply, contributing to a cooling of housing prices. The city also approved a social housing project in Ba Diem Commune, covering nearly 192 hectares with total investment of more than VND 64 trillion and an expected population of over 67,000. The draft plan for the redevelopment of Vinh Hung proposed allocating 14.39 hectares for resettlement land and social housing, with on-site resettlement planned for around 7,250 affected households. In Quang Tri, Sun Group is studying a series of projects with total investment of VND 200 trillion. The U Bo Mountain and Thac Chuoi Lake tourism complex alone is expected to receive more than VND 16.234 trillion and is completing procedures for a planned groundbreaking on October 30.

Management, financing and quality-of-life issues in urban areas also attracted attention. Residents of The Sun Avenue asked authorities to clarify irregularities in the documents for the condominium meeting, while a proposal to impose a 0.2% tax on abandoned land continued to prompt debate. A 115.8-square-meter property at 123 Nguyen Hue, associated with Van Thinh Phat, was announced with a starting price of more than VND 349.4 billion, equivalent to over VND 3 billion per square meter. Nguyen Thi Nhu Loan is expected to return as CEO of Quoc Cuong Gia Lai. In housing and lifestyle news, recommendations on washing bed sheets, using high-tech fabric as an alternative to leather sofas and avoiding certain items near windows highlight the importance of maintaining clean, durable and safe living spaces. Projects and events including Ocean City, Vinh May, Norton Park in Sync and The Wellness Van Phuc continue to be presented around planning, resort amenities, community experiences and the benefits of living near medical facilities.

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