At the Vietnam Investment Forum 2026, Dr. Dinh The Hien warned about the trend of “many real estate investors buying high and selling high. If this continues, they will eventually face a market crash.”
He believes the root of current market instability lies not in credit or legal issues, but in “speculative flipping” – a short-term mindset driving prices far beyond their real value. According to Dr. Hien, the current situation demands government intervention. Despite significant capital flowing into real estate, it’s failing to generate the expected market momentum or liquidity.
Dr. Dinh The Hien warns about investors buying high and selling high in real estate.
Dr. Hien emphasizes that market stability hinges on three factors: selling price, buyer income, and product utilization efficiency. When prices remain high while incomes stagnate and utilization remains unattractive, liquidity inevitably declines.
Data shows credit growth reached 13% in the first nine months of 2025, while capital inflows into real estate surged nearly 20%, particularly in August and September. “Under normal conditions, this growth should create market waves, but despite ample capital, the market remains sluggish. The issue isn’t the amount of money, but how it’s being used,” he analyzed.
Dr. Nguyen Van Dinh, Chairman of the Vietnam Association of Realty Brokers (VARS), argues that soaring property prices aren’t solely due to genuine scarcity. “A significant portion of properties are held by speculators who hoard them, waiting for prices to rise before releasing them. When prices escalate too quickly, genuine buyers are priced out, leaving short-term investors to dominate the market,” he stated.
He cited that over 95% of the 40,000 apartments launched in Hanoi and Ho Chi Minh City this year belong to the high-end segment, priced between 76–80 million VND/m², while mid-range options have virtually disappeared.
“Price inflation” is also evident in peripheral areas like Hoa Lac, Long Thanh, Nhon Trach, Quang Ninh, and Bac Ninh, where infrastructure is rapidly developing. Many plots, with only preliminary planning and incomplete infrastructure, have doubled or even tripled in price within two years. Most transactions in these areas are driven by secondary speculators rather than genuine buyers or project developers.
Dr. Nguyen Van Dinh highlights how rapid price increases exclude genuine buyers, leaving short-term investors to dominate.
Commenting on this situation, Dang Hung Vo, former Deputy Minister of Natural Resources and Environment, warned that excessive speculation poses a significant threat to both the market and the economy. “When prices are artificially inflated, speculative bubbles form, and if left unchecked, their collapse can devalue currency and plunge the economy into crisis,” he cautioned.
According to Vo, the consequences extend beyond economics to societal impacts. As speculation drives prices higher, developers focus on luxury properties, neglecting affordable housing for the majority. “The dream of homeownership is increasingly out of reach for middle- and low-income earners,” he noted.
Data from Batdongsan.com.vn reveals widespread property price increases from 2021–2025, with Hanoi leading at 112%, effectively doubling in five years. Hai Phong follows with a 71% increase, while Da Nang and Ho Chi Minh City saw rises of 53% and 42%, respectively.
This rapid price growth reflects steady demand but also highlights a paradox: property prices are rising far faster than incomes and market absorption capacity.
Banks’ Willingness to Lend for Real Estate Deposits Signals Overheated Credit Market
According to Dr. Dinh The Hien, credit growth in the first nine months of 2025 reached approximately 13%, while the growth in real estate market capitalization was significantly higher, nearing 20%. The months of August and September saw particularly robust increases.
Capital Investment Shifts South in Real Estate Market
The trend of “Southern Expansion” among real estate investors is becoming increasingly prominent.
“Sky-High Prices, Sold-Out Properties: A Real Estate Market Recovery or Looming Risk?”
The influx of “cheap” capital and the prevailing mindset of asset accumulation are reigniting the real estate market, with absorption rates soaring to 77% in Q3/2025. Yet, beneath the vibrant transaction landscape lie concerns over persistently high price levels, supply-demand imbalances, and the escalating risks of real estate credit if timely regulatory measures fail to materialize.
26 Years of Savings: The Reality of Homeownership for the Average Citizen
Dr. Can Van Luc highlights a concerning trend in the real estate market: speculative hoarding and price manipulation. A staggering 80% of transactions involve properties resold within a year of purchase, indicating a high level of speculative activity.
Da Nang Tightens Land Management, Cracks Down on Price Manipulation and Land Speculation
In response to signs of market manipulation and speculative activities disrupting the real estate sector, Da Nang has mandated a comprehensive review of land management, utilization, and auction processes. This initiative aims to ensure transparency, fairness, and compliance with regulations, safeguarding the market from further distortions.
