Vietnam real estate and infrastructure face supply and liquidity challenges

Vietnam's real estate and infrastructure sectors are facing significant structural and logistical challenges. In Ho Chi Minh City, the apartment market shows a paradox where supply is recovering but purchasing power is declining. According to Savills Vietnam, 80% of new projects in Q2 2026 were priced above 120 million VND/m2, while average mortgage rates rose to approximately 13%. This high cost, combined with cautious consumer sentiment, resulted in a market absorption rate of only 32%.

In Hanoi, the landed property market has seen a sharp decline in liquidity, with transactions in some areas dropping by over 60% compared to the same period in 2025. High prices and concerns regarding urban planning and land clearance have led buyers to become increasingly cautious.

Simultaneously, major infrastructure projects across the country are struggling with a shortage of essential construction materials. Key expressway projects and urban developments in Ho Chi Minh City are facing potential delays due to the scarcity and rising costs of sand, stone, and soil. Authorities are looking into reviewing mineral reserves and coordinating local supplies to mitigate these shortages.