Vietnam Real Estate Market Enters Adjustment Phase as Secondary Apartment and Land Prices Decline

The Vietnamese real estate market is showing signs of adjustment in the second quarter, with secondary apartment prices beginning to moderate nationwide, according to a report by the Ministry of Construction. This follows a period of rapid price increases. Specifically, Hanoi saw its average secondary apartment price fall by approximately 3.9% compared to the previous quarter, reaching about 123 million VND per square meter. In Ho Chi Minh City, the average secondary apartment price decreased by 3.6% to around 108 million VND per square meter. Alongside apartments, land prices have also experienced a correction. Nationwide, the secondary land market saw a decrease of about 2-3% from the first quarter, with average asking prices dropping by approximately 2.5% to 40 million VND per square meter. In Ho Chi Minh City alone, land prices declined by nearly 3% to about 66 million VND per square meter. Many projects, particularly higher-value ones or those under selling pressure, have seen price drops ranging from 3-6%. Despite some cooling, price levels in major urban centers generally remain high. The Ministry of Construction notes that some projects in Hanoi are priced between 80-140 million VND per square meter, while in Ho Chi Minh City, the offering prices in inner-city areas range from 70-120 million VND. Data from research firms like Savills, DKRA, and Avison Young also indicate a trend of price decreases in the resale apartment segment by about 5-8% from their peak, and land prices by 8-10%. Meanwhile, the absorption rate for new projects remains low, below 30% for apartments and around 4-7% for land, signaling a cautious buyer sentiment. The Ministry of Construction attributes the cooling of real estate prices to declining liquidity, high capital costs, and a shift in capital flow towards products that serve actual housing needs. In the second quarter, the country recorded over 100,000 successful real estate transactions, a decrease of 28.5% from the previous quarter and 36.3% from the same period in 2025. Land transactions accounted for 73,438 units, down 32.6% from Q1 and over 40% year-on-year. Transactions for apartments and individual houses reached only 26,567 units, a nearly 14% drop from the previous quarter. The Ministry assesses that the market is recovering but not uniformly. The supply of social and affordable housing remains limited, and some projects face delays in legal clearance. High investment costs and difficulties in accessing capital continue to be obstacles. Currently, interest rates for real estate purchase loans are commonly between 12-14% per year. After preferential periods, floating rates at many banks could rise to 13-15%, or even 15-16%, causing a slowdown in both home buying and real estate investment sentiment. The real estate market in the second quarter is in an adjustment phase, moving towards equilibrium after a period of overheating. Capital is forecast to continue prioritizing projects with clear legal status, completed infrastructure, and those meeting real housing demands. Source: VnExpress