Vietnam real estate market enters new cycle with supply imbalances

The Vietnamese real estate market is entering a new development cycle as of the first half of 2026. Data from the Vietnam Real Estate Association (VARS IRE) shows approximately 98,000 products were offered, a 50% increase compared to the same period last year. However, a significant imbalance exists as over 70% of new commercial supply consists of high-end and luxury apartments, leaving the demand for affordable housing largely unmet.

Experts note that the era of speculative short-term trading is ending, replaced by a value-driven investment strategy focused on legal transparency and cash flow potential. While liquidity remains present, buyers are becoming more selective. Some market participants have attempted to use rumors of massive price cuts to pressure sellers, though experts suggest that actual price drops are difficult to force in a slow-liquidity environment.

In Hanoi, authorities are accelerating social housing projects to address the gap between high commercial prices and low-income needs. The city aims to break ground on 114 social housing projects in the second half of 2026, with a goal of supplying between 25,000 and 27,000 units by the end of the year. Administrative procedures are being streamlined through a “green lane” mechanism to expedite planning and construction.