Real Estate News: Rising Interest Rates, Diverging Apartment Prices and New Policies
The domestic real estate market continues to be clearly affected by interest rates and an imbalanced supply structure. Home loan rates in Vietnam have risen to around 14 to 16% per year, making buyers more cautious and causing residential transactions nationwide to fall by 36% in the first six months of the year. This development is similar to the situation in the UK, where expensive borrowing costs have weakened homeownership demand, reduced transactions and put further pressure on house prices. In Vietnam, prices of older apartments have declined, while the average price of new apartments in the third quarter remained above VND 100 million per square meter because new supply is concentrated mainly in the high-end and luxury segments.
In Hanoi, real estate continued to attract international capital, with approximately USD 394 million in FDI during the first nine months of 2026, accounting for nearly 10% of the city’s total foreign direct investment. Infrastructure is also a major focus as numerous large projects are being accelerated, including seven bridges across the Red River, ring roads, urban railway lines and flood-control projects. In Ho Chi Minh City, the road connecting the Bien Hoa to Vung Tau Expressway with the September 2 Street roundabout is targeted for completion by the end of this year. The city is also seeking opinions on a bond issuance plan through the International Financial Center to raise funds for key projects, plans to auction five land lots associated with 3,790 resettlement apartments in Thu Thiem in October, and is developing regulations on the conversion of resettlement, social and commercial housing.
In terms of management and policy, Ho Chi Minh City has requested that real estate developers and brokerage platforms use electronic identification and log in through VNeID to report and disclose project information. The Government has also issued criteria for establishing free trade zones, including a minimum scale of 1,000 hectares and a plan to ensure national security. Notably, the Ministry of Finance has proposed a 0.2% tax on vacant land, land not put into use or land brought into use late, nearly seven times the 0.03% rate for residential land within the quota. The proposal also highlights the need to clarify criteria for identifying vacant land. In the corporate sector, Novaland shares fell sharply amid rumors about the company’s inability to continue operating, but the company said the information was inaccurate. Among notable project updates, Solaria Rise at Waterpoint topped out on October 7 and is expected to be handed over from the third quarter of 2027. Eurowindow Light City and an art-oriented living space in Hanoi are being presented as projects focused on quality of life and individuality. At the household level, kitchen habits and the placement of ornamental plants are also drawing attention because they can increase electricity costs or cause plants to deteriorate more quickly.
In Hanoi, real estate continued to attract international capital, with approximately USD 394 million in FDI during the first nine months of 2026, accounting for nearly 10% of the city’s total foreign direct investment. Infrastructure is also a major focus as numerous large projects are being accelerated, including seven bridges across the Red River, ring roads, urban railway lines and flood-control projects. In Ho Chi Minh City, the road connecting the Bien Hoa to Vung Tau Expressway with the September 2 Street roundabout is targeted for completion by the end of this year. The city is also seeking opinions on a bond issuance plan through the International Financial Center to raise funds for key projects, plans to auction five land lots associated with 3,790 resettlement apartments in Thu Thiem in October, and is developing regulations on the conversion of resettlement, social and commercial housing.
In terms of management and policy, Ho Chi Minh City has requested that real estate developers and brokerage platforms use electronic identification and log in through VNeID to report and disclose project information. The Government has also issued criteria for establishing free trade zones, including a minimum scale of 1,000 hectares and a plan to ensure national security. Notably, the Ministry of Finance has proposed a 0.2% tax on vacant land, land not put into use or land brought into use late, nearly seven times the 0.03% rate for residential land within the quota. The proposal also highlights the need to clarify criteria for identifying vacant land. In the corporate sector, Novaland shares fell sharply amid rumors about the company’s inability to continue operating, but the company said the information was inaccurate. Among notable project updates, Solaria Rise at Waterpoint topped out on October 7 and is expected to be handed over from the third quarter of 2027. Eurowindow Light City and an art-oriented living space in Hanoi are being presented as projects focused on quality of life and individuality. At the household level, kitchen habits and the placement of ornamental plants are also drawing attention because they can increase electricity costs or cause plants to deteriorate more quickly.
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