Hoarding Properties in Anticipation of Price Hikes
The Vietnam Real Estate Market Report for Q3 and the first nine months of 2025, published by the Vietnam Association of Real Estate Brokers (VARS), reveals that the residential real estate market recorded approximately 34,686 new units. This marks a slight 5% decrease compared to the previous quarter but remains the highest level since 2021–2024, doubling the figures from Q3/2024.
For the first nine months of 2025, the total supply of residential properties exceeded 100,000 units, a 22% increase compared to the entire year of 2024. Among these, over 86,000 were new units, 1.3 times higher than the total for 2024. The remaining inventory, which continues to be marketed, is gradually decreasing due to recovering demand and supportive credit policies.
The residential supply in Q3 became more competitive, still dominated by major developers.
Notably, VARS’ report highlights that the residential supply in Q3 became more competitive, yet major developers maintained their dominance. This group contributed over 54% of the new supply, an 18% decrease from the previous quarter but still leading the market. Meanwhile, small and medium-sized enterprises accounted for 46% of the supply, broadening the product range and intensifying market competition.
The supply-demand imbalance in the housing market remains unresolved, particularly in Hanoi and Ho Chi Minh City, where demand is highest. Most new projects in these areas are priced above 100 million VND/m² due to limited supply relative to demand and rising input costs.
According to Mr. Lê Đình Chung, a member of VARS’ Market Research Task Force, newly launched residential projects in Q3 were priced higher but were well-absorbed, even selling out on the first day. This is attributed to genuine demand and increased investment amid low-cost capital and inflationary pressures driving the search for safe-haven assets.
“Prices for newly launched properties remain high, pulling up secondary market prices. Secondary transactions have become more active as primary products are expensive and mostly future developments, prompting buyers to shift to resale properties. However, actual transaction volumes remain limited due to scarce available inventory, as most owners are not selling, and investors are holding onto properties in anticipation of price increases,” Mr. Chung explained.
Regarding specific markets, Mr. Chung noted that in Hanoi, primary market prices surged, driving up overall market prices. Many apartment projects recorded increases of hundreds of millions to billions of VND in a short period, especially in urban areas with integrated infrastructure and amenities.
In Ho Chi Minh City, apartment price increases continued to spread, concentrated in projects with complete legal frameworks, near major transportation infrastructure, and with reasonable price levels.
Specifically, the average price of high-end apartments in Q3 in Hanoi reached 78.9 million VND/m², a 96% increase compared to Q1/2019. In Ho Chi Minh City, the average price remained at 81.6 million VND/m², a 57% increase compared to Q1/2019.
Ms. Phạm Thị Miền, Vice Director of the Vietnam Real Estate Market Research Institute (VARS IRE), emphasized that despite numerous positive signals, the real estate market still faces unresolved bottlenecks and imbalances, including supply-demand mismatches and high real estate credit levels.
“If these constraints are not promptly addressed, they will hinder the stable and sustainable development of the industry and impact overall economic growth,” Ms. Miền stated.
Quality Unimproved Despite Price Hikes
Mr. Nguyễn Văn Đính, Chairman of VARS, noted that against a backdrop of economic recovery, Vietnam’s real estate market continues to show positive growth in supply, transactions, and prices. The market’s recovery and development are marked by significant restructuring. Capable enterprises are expanding their scale, leveraging the market recovery to increase market share. Meanwhile, entities with weak management, capital, or legal issues are exiting the market.
Real estate prices have surged due to rising project development costs, particularly land-use fees.
From 2023 to 2025, the condominium market in Vietnam witnessed significant price increases, setting new records in major cities for both primary and secondary markets. Notably, many projects saw price increases of hundreds of millions to over 1 billion VND per unit in a short period, while project quality or surrounding infrastructure showed no significant improvement. In Hanoi, projects priced at hundreds of millions of VND/m² have become common, a phenomenon unseen in previous periods.
According to VARS, the sharp rise in real estate prices is driven by increased project development costs, particularly land-use fees. The implementation of new regulations under the 2024 Land Law and its guiding decrees, especially Decree 103/2024/NĐ-CP on land pricing methods, has significantly increased land-use fees for projects.
“Land-use fees account for the largest proportion of real estate development costs. The surge in these fees has substantially increased total project investment costs, forcing developers to raise selling prices to compensate, thereby pushing market prices higher. This increase also reduces the incentive to launch new projects, particularly for small and medium-sized enterprises, further limiting market supply,” VARS’ report stated.
Another factor is that many recently launched projects were previously stalled due to legal issues and have now been restarted. These projects incur additional financial costs, land clearance expenses, and other costs accrued during the delay, significantly raising selling prices compared to market averages.
Vietnamese Real Estate Emerges as the New Hotspot for Overseas Vietnamese
U.S. home prices have plateaued, and investment returns are dwindling, while Vietnam’s real estate market is gaining traction with its investor-friendly regulations and high profit potential. A growing number of overseas Vietnamese are returning home, seeking opportunities to own property and make long-term investments.
Why Are Property Prices Still Rising Despite Increased Supply?
The housing supply has improved following the resolution of legal hurdles for numerous projects, yet property prices continue to rise. Dr. Lê Xuân Nghĩa asserts that the root of the issue lies not in speculation, but in the acute shortage of actual housing supply, particularly in the price segment affordable to the general population.
Strategic Asset Allocation: Balancing Stocks, Real Estate, Gold, and Silver for Optimal Investment Returns
Economic stimulus measures are poised to fuel robust growth across key investment channels, including stocks, real estate, precious metals, and digital assets.
Lumière Midtown: Sustainable Living at the Heart of Ho Chi Minh City
Lumière Midtown stands as the quintessential choice for elite living, offering not just a home but a lifestyle defined by unparalleled growth potential. Strategically located, this project seamlessly integrates prime positioning, cutting-edge infrastructure, world-class amenities, and the exceptional craftsmanship of Masterise Homes, setting a new benchmark for luxury and value appreciation.
Taseco Land and HNG Holdings Joint Venture Invests in Billion-Dollar Urban Development Project in Northern Vietnam’s Industrial Hub
HNG Holdings and Taseco Land have joined forces to develop a new urban area project in Huong Mac and Phu Khe wards, located in Bac Ninh. This collaboration promises to create a modern and vibrant community, blending innovative design with sustainable living solutions.
