The Ministry of Construction has recently unveiled a draft resolution aimed at regulating and curbing real estate prices, submitted for government review. The primary objective is to stabilize the market, curb speculation, and enhance transaction transparency, amidst soaring property prices that far exceed the average citizen’s income.
A key highlight of the draft is the imposition of loan limits for home purchases. Specifically, borrowers purchasing a second home (excluding social housing) will be eligible for a maximum loan of 50% of the contract value, while those buying a third or subsequent property can only borrow up to 30%.
Borrowers purchasing a second home (excluding social housing) will be eligible for a maximum loan of 50% of the contract value.
The draft also introduces policies to encourage the development of affordable commercial housing. From 2026 to 2030, provincial and city authorities will be required to allocate at least 20% of all commercial housing projects to this category.
Developers of “affordable” commercial housing projects will be exempt from bidding processes and will benefit from land price tables and adjustment coefficients as per the Land Law.
Additionally, these projects will enjoy a maximum profit margin of 20% of total investment—similar to the mechanism applied to social housing. Pricing methods for sales, rentals, and rent-to-own schemes will mirror those of social housing, reducing input costs and lowering product prices.
Notably, buyers in these projects will be prohibited from transferring purchase or rent-to-own contracts, aimed at preventing speculation and “flipping.”
According to the Ministry of Construction, controlling corporate profit margins is a pivotal solution to cooling housing prices. By reasonably capping development costs and profits, housing prices can be brought down to levels more aligned with citizens’ purchasing power.
This policy is expected to rebalance the real estate market, which currently suffers from a severe imbalance, with high-end properties dominating supply while affordable housing options have nearly vanished.
Ministry statistics reveal that property prices in major cities have surged multiple times over the past 5–7 years. In Ho Chi Minh City, average apartment prices have risen from approximately 35 million VND/m² in 2018 to 120 million VND/m² in Q3 2025, a 47% increase year-on-year.
In Hanoi, villa and townhouse prices have climbed by 22–29% annually, with some projects seeing up to a 60% increase in just one year. Meanwhile, average per capita income has only grown by about 6–7% annually, making homeownership increasingly unattainable.
The Ministry’s report underscores: “Real estate prices have risen abnormally, far outpacing the affordability of the majority, particularly middle- and low-income groups. Property values no longer reflect true supply and demand dynamics but are heavily influenced by speculation, opaque planning information, and herd mentality.”
Will Hanoi Apartment Prices Continue to Reach New Heights in the Coming Period?
Ms. Do Thu Hang, Senior Director of Research & Consultancy Services at Savills Hanoi, predicts that Hanoi’s real estate market will see a clear differentiation in the upcoming period, based on both location and project quality. As a result, it’s essential to monitor and assess the market rather than drawing premature conclusions about current housing price trends.
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The Ministry of Construction has proposed a new policy aimed at developing affordable commercial housing. This initiative includes setting loan limits for second and third home purchases, with a maximum loan-to-value ratio of 50% for second homes and 30% for third homes. The goal is to regulate and stabilize real estate prices, ensuring a more balanced and accessible housing market.
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