Vietnam real estate market faces declining prices and low liquidity

The Vietnamese real estate market is experiencing significant shifts in Q3 2026. Nationwide, average selling prices have declined for three consecutive quarters, dropping to 86 million VND/m2. While transaction volumes remain low, with many brokers reporting decreases of over 50%, the apartment segment shows more resilience and interest compared to land or townhouses.

In major cities, market dynamics vary. In Ho Chi Minh City, supply is slowly returning as legal hurdles for hundreds of projects are resolved, though most new supply is concentrated in outlying areas like Binh Duong rather than the city center. In Hanoi, the villa and townhouse segments have hit a 10-year low in liquidity, with absorption rates dropping to just 9%. Additionally, a significant gap has emerged in Hanoi between rising incomes and skyrocketing primary apartment prices.

Financial pressures are also impacting buyers. Many mortgage holders are transitioning from preferential rates to floating rates as high as 12-15% per year. To stimulate demand, developers like Vinhomes are implementing aggressive support policies, including interest rate subsidies for up to 60 months, to maintain liquidity amidst high prices and interest rate pressures.