Written by Dustin Trung Nyugen, Head of IQI Vietnam

Housing Prices Surge Amid Cost Pressures and Supply Bottlenecks; Government Eyes Reform 

Vietnam’s housing market continues to grapple with relentless price increases, fueled by rising land costs, material expenses, and extended approval timelines.

Industry experts cite high development costs and premium segment focus as key contributors, with some projects taking up to a decade to secure full licensing—driving prices even higher.

Developers’ pursuit of large profits further inflates prices, pushing affordability further out of reach for average citizens. 

In response, Prime Minister Pham Minh Chinh has called for tighter regulation to curb speculation, enhance market transparency, and accelerate the development of affordable housing.

Vietnam aims to complete over 100,000 social housing units by the end of 2025.

Key initiatives include diversifying housing supply, expanding rental and worker housing, and mobilizing all sectors to invest in socially inclusive housing under market-driven frameworks.

These reforms are critical to ensuring a more balanced, accessible, and sustainable real estate landscape in the years ahead.