Vietnam Market Faces Short-Term Pressure, Long-Term Growth Remains Strong Vietnam’s property market in 2026 is facing short-term pressure, as rising mortgage rates continue to impact affordability and buyer demand. At the same time, the country is accelerating large-scale urban development, reinforcing its long-term growth outlook. Rising Mortgage Rates Weigh on Demand Higher borrowing costs are putting pressure on the apartment market, with many sellers lowering prices by around 10% to 12% to attract buyers. Demand has weakened in recent months, with property searches declining significantly as interest rates rise across the market. Affordability Challenges Impact Market Activity Mortgage rates ranging up to 14% and even higher for floating rates are reducing purchasing power, leading to slower transactions and more cautious buyer behaviour. This has created a temporary slowdown, particularly in the residential segment. Mega Urban Projects Drive Long-Term Growth Despite short-term challenges, Vietnam is pushing forward with large-scale urban development. As of 2025, 27 mega projects valued at over USD115 billion are underway, led by major developers such as Vingroup and Sun Group. These projects, spanning key regions from Hanoi to Ho Chi Minh City, reflect the country’s strategy to develop integrated townships and modern infrastructure, supporting long-term urbanisation and economic growth. Outlook While rising interest rates are slowing demand in the short term, Vietnam’s strong pipeline of mega developments highlights its long-term potential. For investors, the market presents a mix of near-term caution and future growth opportunities driven by urban expansion and economic development. Download to see insights from other country marketsDownload

Vietnam’s major property markets are entering a new price cycle, with apartment values in Ho Chi Minh City and Hanoi continuing to climb, in some cases rivaling or even surpassinglanded homes. HCMC: Apartments Narrow the Gap with Landed Property In Ho Chi Minh City, high-end apartment prices are approaching the level of single-family homes in prime areas. At The Metropole in An Khanh (Thu Duc City), 85 sqm units are offered at VND130–180 million per sqm, while a nearby 80 sqm townhouse in Thao Dien is priced around VND150 million per sqm. Other premium developments such as The Privé, Eaton Park, and Lumière Midtown are transacting within the VND130–250 million per sqm range, notably higher than the VND110–200 million per sqm commonly seen for landed homes within a 2-kilometer radius. This shift reflects strong buyer preference for modern master-planned communities offering integrated amenities, security, and professional management. The premium segment continues to dominate new supply in Ho Chi Minh City. Of the 5,500 apartments launched last quarter, more than half were priced at VND100 million per sqm or higher. The average launch price rose 21% year-on-year to VND96 million per sqm, including data from Ba Ria–Vung Tau and Binh Duong, which merged into the expanded HCMC metropolitan area in July. Hanoi: Apartment Prices Double Over the Decade In Hanoi, apartment prices have doubled over the past 10 years, with VND100 million per sqm becoming the new benchmark in many central projects. A three-bedroom unit in a 26-storey residential tower is priced at VND107 million per sqm, approximately 2.6 times its 2017 launch price. According to Batdongsan, average asking prices surpassed VND100 million per sqm in Q3, with strong year-on-year growth recorded at Royal City (+39%), Park View City (+36%), Hinode City (+32%), and Times City (+29%). These figures underline sustained demand and limited prime supply in the capital’s established urban zones. What This Means for Buyers and Investors Premium apartments are increasingly positioned as long-term value assets. Integrated developments continue to command price premiums, and early entry into new launches remains a key strategy for capital appreciation. As pricing benchmarks shift upward, strategic property selection and timing will play an even more important role in optimizing investment returns. Download to see insights from other country marketsDownload

Hanoi's real estate market is facing challenges as rental yields have significantly fallen. While property prices have surged by 30–40% over the past year, rents have only risen by 8–10%, with many areas experiencing a plateau in rental income. This situation is making it increasingly difficult for property owners with mortgages to sustain their investments. The market outlook is further strained, with an abundant supply of high-end properties and secondary market prices remaining high, leading to a forecasted decline in yields. However, Hanoi’s real estate future looks promising due to major developments on the horizon. Authorities have approved a VND925 trillion (US$38 billion) sports complex project, developed by Vingroup, which willinclude a 135,000-seat stadium, the second largest in the world. This development is part of an OlympicSports Urban Area spanning more than 9,000 hectares, which is expected to significantly boost the city's infrastructure and attractiveness for both domestic and international investors. Download to see insights from other country marketsDownload