Vietnam’s property market is entering a transition phase in 2026 as rising mortgage rates place pressure on the secondary apartment market. Buyers who purchased during the low-interest-rate period are now facing higher repayment costs, leading to weaker demand and slower transaction activity.
As financing conditions tighten, more sellers are lowering prices and offering discounts of around 10% to 15% to attract buyers. Liquidity has also become more limited as elevated borrowing costs continue affecting market sentiment.
Despite these short-term pressures, Vietnam’s long-term outlook remains positive. The country continues to push forward with major urban expansion projects, with over 27 large-scale developments nationwide and combined investments exceeding US$115 billion. Major developers such as Vingroup and Sun Group continue driving integrated township and infrastructure growth across key regions.
Key Market Highlights
- Rising mortgage rates are increasing pressure on secondary apartment owners.
- Sellers are offering discounts as liquidity and buyer demand weaken.
- Vietnam continues expanding through large-scale township and urban projects.
- Major developers remain actively investing in integrated developments nationwide.
- Long-term urbanisation and infrastructure growth continue supporting the market outlook.
One of the most notable projects is Vingroup’s proposed Olympic Urban Area in Hanoi, covering over 9,000 hectares and expected to become one of Vietnam’s largest urban developments. These mega projects continue reinforcing investor confidence in Vietnam’s long-term growth trajectory despite current market adjustments.
Outlook
Looking ahead, Vietnam’s property market is expected to remain in an adjustment phase in the near term as higher financing costs continue impacting transaction activity. However, ongoing urbanisation, infrastructure expansion, and large-scale township development are likely to support strong long-term growth opportunities for disciplined investors.
