Vietnam real estate firms face limited price cuts amid rising costs

A report by the Vietnam Real Estate Research & Evaluation Institute (VARS IRE) shows that, despite a surge in supply, developers are unlikely to lower listed prices in the near term. Higher land acquisition, compensation, construction, material, financing and regulatory costs leave little margin for price reductions. Companies are instead offering discounts, interest‑rate subsidies or extended payment schedules to lower the effective cost for buyers.

The market remains active: in the first half of 2026, about 98,000 units were offered, a 50 % increase year‑on‑year, with high‑end apartments accounting for over 70 % of new supply. Approximately 48,000 transactions were recorded, achieving a 49 % absorption rate. Economic fundamentals are strong, with GDP growth of 8.18 % YoY and total FDI inflows of US$34.65 billion, of which US$5.1 billion (17.9 %) went to real estate.

Recent amendments to the Land Law, Housing Law and Real Estate Business Law tighten business conditions, mandate greater project transparency, and impose stricter deposit and financial‑capacity requirements, further shaping market dynamics.