Vietnam’s apartment market has cooled sharply following a period of rapid price growth: developers are facing a decline in transactions, buyer caution, and the need to stimulate sales.
According to local media reports, demand for apartments has dropped significantly amid high interest rates, inflationary pressures, and general geopolitical instability. Vietnam’s Ministry of Construction has also recorded a decline in transaction volumes nationwide, confirming the market’s shift from a phase of frenzied growth to more selective demand.
However, the market’s problem is not limited to a decline in buyer interest. An imbalance in supply persists in Vietnam: in the largest cities, primarily Hanoi and Ho Chi Minh City, there remains a shortage of affordable housing, while a significant portion of new projects falls into the higher-priced segment. Vietnam Investment Review notes that in the first quarter of 2026, Hanoi and Ho Chi Minh City continued to face a gap between supply and demand due to a shortage of affordable apartments.
The most pressing issue remains housing costs. In Hanoi, prices for new apartments continued to rise in the first quarter of 2026, reaching an average of approximately 128 million dong per square meter, while the secondary market has already begun to show signs of a price correction. Developers attribute the price increases to rising costs of construction materials, financing, and land.
In Ho Chi Minh City, the trend is different: after prices rose in 2025, the market began to cool, and in some areas, prices fell by 1–7%, which partially stimulated demand.
The Vietnamese government is trying to curb market overheating and expand the supply of affordable housing. Earlier, Prime Minister Pham Minh Chinh called for accelerating housing construction, simplifying administrative procedures, and developing social housing, as rising prices have made real estate purchases unaffordable for many families.
Additional pressure on the market is being created by the government’s plans to curb speculative demand. In January 2026, Reuters reported that Vietnam was preparing tax measures against speculation in the real estate market, where in 2025 apartment prices rose by 20–30% and land prices by 20–25%.
Thus, the Vietnamese apartment market is entering a more complex phase: prices remain high, there is a shortage of affordable supply, but demand is no longer ready to automatically absorb new properties at any price. For developers, this means the need to revise pricing policies, offer installment plans, discounts, and more realistic purchase terms. For buyers, it presents an opportunity for stronger bargaining positions, especially in the secondary market and in areas where supply is growing faster than demand.
