Vietnam’s flat market has cooled sharply after a period of soaring prices, with developers facing a decline in the number of transactions, buyer caution and the need to stimulate sales.
According to local media, demand for flats has dropped markedly amid high interest rates, inflationary pressures and general geopolitical instability. Vietnam’s Ministry of Construction has also recorded a decline in transaction volume across the country, confirming the market’s transition from a hype phase to a more selective demand.
That said, the market problem is not just down to a drop in buyer interest. There is still an imbalance of supply in Vietnam: in the largest cities, especially Hanoi and Ho Chi Minh City, there is still a shortage of affordable housing, while a significant proportion of new projects are in the more expensive segment. Vietnam Investment Review notes that in Q1 2026, Hanoi and Ho Chi Minh City continued to face a gap between supply and demand due to a shortage of affordable flats.
The most painful factor remains the cost of housing. In Hanoi, new flat prices continued to rise in Q1 2026, reaching an average of about VND128 million per square metre, while the secondary market has already started to show signs of price correction. Developers attribute the price increase to the rising cost of construction materials, financing and land.
In Ho Chi Minh City, the dynamics are different: after price increases in 2025, the market has started to cool down, and in some areas prices have fallen by 1-7 per cent, which has partly stimulated demand.
The Vietnamese government is trying to curb market overheating and expand the supply of affordable housing. Earlier, Prime Minister Pham Minh Chinh called for speeding up housing construction, simplifying administrative procedures and developing social housing as rising prices have made buying property unaffordable for many families.
Additional pressure on the market is being created by authorities’ plans to curb speculative demand. In January 2026, Reuters reported that Vietnam is preparing tax measures against speculation in the property market, where flats rose in price by 20-30% and land plots by 20-25% in 2025.
The Vietnamese flat market is thus entering a more challenging phase: prices remain high, affordable supply is scarce, but demand is no longer ready to automatically absorb new properties at any price. For developers, this means the need to revise pricing policies, offer instalments, discounts and more realistic purchase terms. For buyers, it means a chance for a stronger negotiating position, especially in the secondary market and in areas where supply is growing faster than demand.