Two months ago, at the Central Steering Committee meeting on housing policy and the real estate market, Prime Minister Pham Minh Chinh candidly addressed the market’s reality: “With apartment prices ranging from 70 to 100 million VND per square meter, who can afford to buy?” He also urged relevant agencies to investigate whether the real estate market is being manipulated and to rectify hoarding, price gouging, and market distortions.
During a meeting with Hanoi constituents in early October, General Secretary To Lam expressed frustration over land speculation driving prices so high that locals can’t even afford land in their own hometowns. Meanwhile, numerous real estate projects lie abandoned, leading to significant waste.
At the “Building a Healthy and Sustainable Real Estate Market 2025” forum organized by Hanoi Radio on December 4th, National Assembly Deputy Ha Sy Dong, a member of the Economic and Financial Committee, noted that real estate has recently faced sensitive issues. He emphasized that it’s not just an economic sector but also a matter of social security.
“While the government has made significant improvements, such as amending the Land Law, real estate business laws, and housing regulations, as well as adjusting taxes, these policies haven’t deeply impacted the market. This has led to an unhealthy and unstable real estate market,” stated Deputy Ha Sy Dong.
He highlighted that tax policies are insufficient to enable genuine buyers to purchase homes. Over the past year, National Assembly deputies have called for institutional reforms, including macroeconomic policies, the Land Law, housing laws, and investment regulations, alongside other laws and decrees.
He also pointed out that many projects still take 3-5 years to break ground, and new housing supply meets only 10-15% of demand, while prices remain sky-high. Deputy Dong warned that prolonged high real estate prices not only negatively impact growth but also threaten long-term social equilibrium.
“Recently, a group of young people labeled as ‘3 no’s’ has emerged: no education, no employment, and no training. If this trend continues, it’s predicted to affect demographics, labor, and social welfare within the next decade, with far-reaching consequences,” he remarked.
He proposed three key focuses for the upcoming period: institutional refinement, stronger state intervention through regular market monitoring, and clear sanctions to encourage developers to build affordable housing while curbing speculation and price manipulation.
From a financial perspective, Dr. Nguyen Tri Hieu, Director of the Institute for Global Financial and Real Estate Market Research and Development, issued a different warning: The market is nearing bubble territory as supply risks surge, inventory grows, and homeownership becomes increasingly inaccessible for the average citizen.
“Vietnam’s average home prices are 20-30 times the average per capita income, compared to just 4-5 times in the U.S.,” Dr. Hieu illustrated.
Additionally, credit growth over 10 months reached approximately 15%, with projections for the full year hitting 18-20%. Real estate credit alone accounts for 24% of total bank loans. He noted that overall credit has soared by 137%, a level many global economic organizations warn is excessive relative to Vietnam’s GDP growth.
Dr. Hieu attributed the rise in overnight interest rates to 7% as banks aggressively mobilize capital, driving up borrowing costs. This makes credit less accessible, especially as banks prioritize lending for land—a non-income-generating asset—to fuel speculation, unlike in the U.S., where such lending is largely avoided. “Banks play a role in driving up land prices,” Dr. Hieu asserted.
He recommended adjusting monetary policy, particularly reducing real estate credit to around 20% of total loans. The State Bank should also implement measures to help commercial banks offer lower-interest home loans, enabling genuine buyers to access housing and mitigating bubble risks and inventory bloating.
Dr. Nguyen Tri Hieu, Director of the Institute for Global Financial and Real Estate Market Research and Development.
“Soaring Home Prices Erode Affordability, Posing Risks to the Broader Economy”
Despite a gradual improvement in supply, housing prices remain stubbornly high, with major cities setting new record levels. The widening gap between sale prices and average incomes is making homeownership increasingly out of reach.
Exciting News for Novaland and Homebuyers: 10,500 Land Titles in Ho Chi Minh City Soon to Be Delivered, Multiple Projects Break Free from Stagnation
With decisive government leadership and proactive legal unblocking measures from the Ho Chi Minh City People’s Committee, Novaland is poised to resolve property ownership rights for over 10,500 households and reignite key projects during the 2025-2026 period.
Skyrocketing Condo Prices Fueled by Weak Supply
Property prices in Hanoi and Ho Chi Minh City continue to soar, with many projects reaching 150–180 million VND per square meter. Experts attribute this surge not to speculation, but to a scarcity of supply, rising land costs, legal complexities, and a prolonged supply-demand imbalance.
Crafting Cao Bằng’s Premier Livable Model Urban Area: Hải Phát’s Visionary Development
On the morning of November 29, 2025, at the HP Galaxy Cao Bang project site, Hai Phat Corporation held a dual ceremony: the groundbreaking of the high-rise district and the handover of land use right certificates for the low-rise district to customers.
National Housing Fund Established: Empowering the Poor and Youth to Secure Affordable Housing?
The National Housing Fund is poised to be more than just a timely initiative; it represents a strategic approach to ensuring long-term social welfare.
