Investor expectations in Vietnam's real estate market are noticeably declining. The strategy of holding properties in hopes of price appreciation is no longer effective, leading to an urgent need for cash recovery and liquidity. Consequently, the market is transitioning from a rapid growth phase to one characterized by adjustment and selectivity.
On June 1, local media outlets, including Vietnam Finance, reported that the Ministry of Construction's housing and real estate market report for the first quarter of 2026 indicates that new apartment prices remain high. In Hanoi, the average price is approximately 12.8 million VND (about $736) per square meter, surpassing Ho Chi Minh City's average of about 11.2 million VND (approximately $644). The LUMIÈRE Hanoi Seasons Garden, located on Nguyen Chai Street, is expected to have selling prices ranging from 12 to 18 million VND per square meter. LUMIÈRE is a luxury residential brand developed by Masterise Homes.
However, since late last year, there have been increasing instances where properties in some suburban projects in Hanoi are not selling even after significant price reductions of several hundred million VND. A resident of the Ha Dong area, identified as Mr. A, listed his two-bedroom apartment in the Thuong Khu area for sale at the beginning of this year but has yet to find a buyer.
"Previously, apartment prices were rising almost every month, leading many to believe that buying would soon yield profits," he said. "However, buyers have become much more cautious, and the speed of transactions has slowed significantly compared to before." He noted that he has already reduced his asking price by about 300 million VND (approximately $1,725) but the apartment remains unsold.
In another project in western Hanoi, studio apartments that were once priced around 3.1 billion VND are now listed between 2.5 and 2.6 billion VND. Investor B commented, "Investor sentiment has completely changed. Previously, many thought prices would continue to rise, so they were willing to hold onto properties for a few more months. Now, the primary goal is to sell and secure cash."
Experts suggest that the price surges of 2024-2025 and the supply shortage had previously stimulated investor sentiment, but now the financial burden has increased significantly. Investors who have relied on leverage for an extended period are facing heavy monthly interest costs, while price increases are insufficient to cover these expenses.
Pham Duc Toan, CEO of EZ Property, commented on the current market trend, stating, "Investors who entered the market at these high prices are facing considerable cash flow pressures." Some investors in eastern Hanoi are even listing properties below their original costs or foregoing premiums altogether.
The changes in the market are also evident in the flow of funds. Cao Thi Thanh Huong, Deputy Director of Savills Vietnam, explained, "Currently, bank credit is increasingly prioritizing projects that meet actual housing demand, particularly in the mid-range housing sector." This indicates a shift in bank funding toward projects that cater to genuine demand and affordable housing.
She added, "Foreign investors still highly value the potential of the Vietnamese housing market, but they are now more selective, focusing on projects with clear legal status and substantial development capabilities." This trend reflects a growing emphasis on legal transparency and development capacity in foreign investments.
Can Van Luc, chief economist at BIDV, characterized the current situation as a phase of 'competitive corporate capabilities.' He noted that only businesses with legal clarity, compliance, and appropriate product offerings will have an advantage in attracting investment in the future.
Nguyen An Khe, chairman of G6 Group, also assessed that the market has officially entered an adjustment cycle. He stated, "Prices surged too quickly in 2024-2025, exceeding the market's absorption capacity, and now speculative demand is rapidly declining, leading to a more segmented market."
* This article has been translated by AI.
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