The median house price in Ho Chi Minh City has reached more than VND7 billion ($296,000), 32.5 times higher than the average annual household income of just VND217 million ($9,110).
The global economic slowdown, the impact COVID-19 pandemic, and internal difficulties have put Vietnam’s real estate market in a tough situation.
Ho Chi Minh City has seen a 16% increase in leasable floor space in the serviced office and coworking sector this year but a commensurate fall in overall occupancy and asking rents.
After going through tough times, Vietnam's real estate market has been showing signs of growth since the second quarter of 2023, when property prices and demand both went up.
- Vietnam's real estate companies' funds drop to their five-year low 1
- Resort real estate: Overcoming hot fever, treating cold fever 2
- Dong Khoi Street (HCMC) is the 13th-most expensive place to rent in the world 3
- Real estate developers increase sales on lower interest rates 4
- Novaland to settle bond debt using luxury property assets 5
- Real estate firms offer higher salaries to attract quality brokers 6
The real estate sector needs more time to absorb beneficial measures to reduce the two largest obstacles, legal and capital.
The establishment of a land use rights trading floor will help this market operate in an open, transparent, healthy and sustainable manner, said experts.
Property market specialists advocated lowering interest rates on loans for investing in or purchasing social housing items to 4.5-6% per year, down from the current 8.2-8.7%.
Continuous interest rate cuts and support policies are gradually proving effective, helping ease difficulties facing the real estate market, experts have said.
Property sales are falling, developers are missing bond payments and a weak economic recovery is sapping demand and sentiment in Vietnam.
The condotel market remains in a slump due to excess inventory, and industry insiders warn it will not recover at least until 2025.
A wave of foreign businesses are coming to learn about potential real estate projects in Vietnam to carry out mergers and acquisitions (M&As), reported Dau tu (Vietnam Investment Review) newspaper.
An estimated 4 million foreigners and overseas Vietnamese have a desire to purchase houses in Vietnam, according to the Ministry of Construction.
Vietnam’s luxury coastal real estate market is facing significant challenges due to excess inventory and liquidity issues, industry insiders said.
Investors should buy in stocks of businesses with strong resilience in the second half of this year, amid the context that the stock market is entering a growth momentum.
Southern Vietnam’s industrial property market is heating up, helping developers to make a profit and resulting in the prospect of new supplies.
The Vietnamese real estate market has shown good signals in many segments, creating momentum for its recovery, said experts and business leaders.