Vietnam real estate market faces supply shifts and affordable housing shortages

The Vietnamese real estate market is undergoing a period of restructuring and shifting consumer preferences. While supply is showing signs of recovery—with the Ministry of Construction reporting a significant increase in licensed commercial housing projects in Q2 2026—the market faces a severe shortage of affordable housing. Data from the Ho Chi Minh City Real Estate Association (HoREA) indicates that affordable commercial housing has nearly disappeared, with high-end segments now dominating the market.

Buyers are becoming increasingly selective, prioritizing construction quality, developer reputation, and long-term living value over mere amenities. In Hanoi, absorption rates for new apartments have seen a decline compared to previous years. Additionally, the vacation property sector is being urged to pivot from a speculative investment model toward one focused on operational profitability and real service value.

In Ho Chi Minh City, major infrastructure investments are accelerating. Significant funds are being allocated to land clearance for key projects, such as the expansion of National Highway 13, which is expected to improve connectivity and regional traffic flow by 2029. However, experts warn of the potential for speculative effects if property prices rise too rapidly ahead of infrastructure completion.