Vietnam real estate market faces liquidity decline and shifting demand

The Vietnamese real estate market is experiencing a period of significant transition characterized by declining liquidity and shifting buyer preferences. In southern regions, transactions have slowed considerably, with some properties seeing price reductions of 20–30% yet still struggling to find buyers due to high interest rates and reduced speculative capital.

In major urban centers like Ho Chi Minh City, supply is increasing while primary market purchasing power has dropped. This imbalance has led developers to offer aggressive incentives, such as extended payment schedules and interest rate support, to stimulate demand. However, a notable gap remains between supply and demand: nearly 90% of new commercial housing eligible for capital mobilization in Ho Chi Minh City falls into the high-end segment, leaving a shortage of affordable options for first-time buyers and young families.

In Hanoi, the market is also facing a downturn. Secondary apartment prices outside the third ring road have decreased by approximately 15%, while land plots and villas have seen drops between 5% and 20%. Buyers are increasingly pivoting toward apartments to mitigate risks associated with long-term urban planning uncertainties, moving away from short-term speculation toward long-term residential utility.