Vietnam real estate market is back on track

In anticipation of a new development cycle, a number of real estate firms have started to "accelerate" with several new projects in the social housing and upscale apartment sectors.

Rushing to launch new projects

For the second time in the previous five years, Hanoi registered more than 10,300 newly launched apartments in the third quarter of 2025, according to CBRE.

Numerous large-scale projects are still being started, with the Eastern Hanoi leading the way with the new Masteri Lakeside developments in the Vinhomes Ocean Park 1 urban area, which will provide the market with over 2,400 apartments. The Western Hanoi also saw many new projects, notably The Matrix Premium (MIK Group) and Kepler Land (TSQ Vietnam), expanding from the mid-range to the high-end segment. High-end developments like Noble Crystal (Sunshine Group) and The Nelson Private Residence (HD Mon – Indochina Capital) with asking prices exceeding 100 million VND/m2 are still present in inner-city regions.

The social housing sector is also making great strides, in addition to commercial projects. Five new projects with costs ranging from 18 to 29 million VND/m2 have been documented in Hanoi alone in the previous few months of this year. N01 Ha Dinh, Uy No Social Housing Area, Kim Chung Social Housing Area, Kim Hoa Social Housing Area, and Rice City Long Chau are a few of these. These projects' emergence is anticipated to create a "bright spot" in the Vietnam real estate market that meets actual demands and lays the groundwork for the construction of social housing throughout the 2025–2030 timeframe.

The notable rise in supply over the previous time indicated how well the government's measures have worked to solve challenges. Numerous projects that were previously "stalled" because of procedural problems have fulfilled legal criteria and are now ready to be introduced to the market. Developers' and investors' confidence has also been bolstered by the economic recovery, affordable interest rates, and measures to promote economic development. Many developers have been inspired to bravely start new projects as a result of this encouraging signal, progressively getting ready for a more durable recovery cycle.

The market is about to enter a "harvest season" as a result of the convergence of several favorable conditions, including stable interest rates, faster capital flow from public investments, an abundance of supply, and a number of stimulus programs, according to Ms. Trinh Thi Kim Lien, Business Director of Dat Xanh Services. Buyer sentiment has significantly improved, opening up recovery prospects. Satellite urban areas also profit from the advancement in transportation infrastructure, particularly if costs rise and supply in the city center becomes more limited.

In the second half of 2025, Savills predicts that 11,500 flats, mostly in the mid-to-high-end market, will be available for purchase. It is anticipated that new supply would rise dramatically starting in 2026, when a number of projects finish the legal process. Specifically, 43 projects might deliver over 46,600 flats to the Hanoi market between 2026 and 2027.

Supply improves but prices remain high.

Prices are still high even if the Hanoi real estate market is beginning to rebound with better supply. According to Ms. Do Thu Hang, Senior Director of Research and Consulting Services at Savills Hanoi, regions with a large supply of land and inadequate infrastructure are expected to see price decreases. Due to actual demand and scarcity, projects built by good developers or in key areas like Ring Roads 2 and 3 are nevertheless likely to keep or even significantly raise their apartment prices.

"Instead of a simultaneous wave of price reductions, the market will be strongly differentiated by location, quality, and legal progress," said Ms. Hang.

The Savills representative added that synchronized enforcement of laws will still take time even though they have been passed and are starting to take effect. It is still challenging to lower home prices in the near future due to the supply imbalance between high-end and low-cost housing, as well as the growing expenses of labor, materials, land, and bank interest.

"Social housing will create an important supply to meet the very high demand of low-income workers and urban residents," said Mr. Nguyen Van Dinh, Chairman of the Vietnam Real Estate Brokers Association. This will help to better control commercial apartment prices by easing the pressure of excess demand in the commercial apartment market. However, it has little effect on core property costs because the majority of the present supply of social housing is still located in the suburbs.

From a different angle, Ms. Duong Thuy Dung, CEO of CBRE Vietnam, continues to hold the opinion that it is doubtful that home prices would fall in 2025. There are no compelling reasons to lower selling prices, even with the rise in new supply. In addition, the state's increasing national investment in transportation infrastructure is seen to be a significant factor in the medium- and long-term growth of demand and real estate values. A number of important projects, including satellite cities, interregional highways, and ring roads, are planned between now and 2030.