Vietnamese property investors hit cash crunch as market stalls

Investors who bought Vietnamese land and apartments at peak prices are now struggling with liquidity as the real‑estate market cools. Nguyen Van Tuan bought a 50 m² plot in Thach That for VND 2.5 billion in early 2025; its value has fallen to about VND 2 billion and he cannot find a buyer. Similarly, Tran Hai Lan purchased land in Vinh Giang for around VND 4 billion and is forced to sell at the purchase price, which market agents deem too high.

PropertyGuru data show apartment listing prices in Hanoi slipping from VND 87 million/m² in January to VND 85 million/m² in May, a 2 % drop, while searches for street‑front houses fell 10 % month‑on‑month and 50 % year‑on‑year. Mortgage rates have risen sharply, from about 7 % a year previously to 8.5‑10 % during promotional periods and 11‑15 % thereafter, pushing borrowing costs to 13‑14 % for many borrowers. The higher cost of capital, combined with reduced buyer confidence, has left many investors with high‑leverage positions and insufficient cash reserves, prompting forced sales at a loss or prolonged holding periods.