Vietnam real estate market faces credit imbalance and high housing prices

Vietnam's real estate market is experiencing a significant credit imbalance. According to data from the Ministry of Construction and the State Bank of Vietnam, real estate credit reached over 2.5 quadrillion VND in Q2 2026, a nearly 13% increase from the previous quarter. Most of this capital is directed toward urban and residential investment projects, which accounted for over 833 trillion VND.

Despite the surge in corporate credit, actual homebuyers face significant difficulties in accessing loans. This creates a paradox where capital flows into large-scale projects and developers, while individual buyers struggle to secure financing for their first homes. Furthermore, credit access is uneven; only developers with strong financial capacity and stable cash flow can borrow easily, while others face high interest rates and tightened limits, leading to project delays.

Additionally, the market faces a pricing paradox. While liquidity remains low and inventory levels are high, housing prices remain elevated. Experts suggest developers are reluctant to lower prices due to high input costs and the long duration of project development cycles, which can span 7 to 10 years. Instead of reducing prices, many firms are choosing to delay project launches or seek M&A opportunities to acquire land with clearer legal status, which often adds further costs to the final sale price.