HoREA proposes solutions for sustainable real estate market development

The Ho Chi Minh City Real Estate Association (HoREA) and the Ho Chi Minh City Department of Construction have proposed several measures to promote a stable and sustainable real estate market in Vietnam. Key recommendations focus on aligning market supply with actual demand, particularly for low- and middle-income groups.

To address current challenges such as high housing prices and low liquidity, HoREA suggests diversifying capital sources. This includes developing Real Estate Investment Trusts (REITs) and other medium-to-long-term funding channels to reduce corporate dependence on bank credit. The association also recommends classifying credit policies based on project risk levels, developer financial capacity, and product absorption rates.

Reports indicate that as of August 31, 2026, real estate credit debt reached approximately 5.21 quadrillion VND, a 9.49% increase from the end of 2025. While primary market prices have seen modest decreases, secondary market prices have experienced deeper cuts of 20-30% as investors attempt to mitigate losses. Current market structures remain imbalanced, with an oversupply of luxury housing and a significant shortage of social and rental housing.