Vietnam’s property market continues to present a mixed but encouraging picture in 2026. While Hanoi’s retail property sector is undergoing a period of adjustment, Ho Chi Minh City’s residential market remains resilient, supported by limited supply, strong demand, and improving infrastructure connectivity.

The contrasting performance between the two cities highlights the importance of market selection as investors navigate Vietnam’s evolving real estate landscape.

Hanoi’s Retail Market Faces Adjustment

Hanoi’s prime retail corridors continue experiencing pressure as changing consumer behaviour and the growth of e-commerce reshape demand for traditional street-front retail space. Vacancy levels have become more noticeable in several key commercial areas as landlords and tenants adjust to shifting market conditions.

The correction has also impacted retail-linked residential assets, with demand softening compared to previous years. Rental rates for townhouses across several submarkets have declined from their recent peaks, reflecting a more cautious operating environment for retailers and property owners.

Despite these short-term challenges, Hanoi remains an important commercial centre, and the current adjustment may create opportunities for well-capitalised investors focused on long-term value.

Ho Chi Minh City Continues to Lead Residential Growth

In contrast, Ho Chi Minh City’s residential market remains one of Vietnam’s strongest-performing sectors. Limited new supply, improving infrastructure, and sustained buyer demand continue supporting price growth across the city.

Average apartment prices in central Ho Chi Minh City reached new highs during the first quarter of 2026, driven largely by high-end and luxury developments. The shortage of mid-market housing options has also contributed to upward pressure on prices.

Growth is not limited to the city centre. Formerly independent areas such as Binh Duong and Ba Ria-Vung Tau continue benefiting from expanding infrastructure and stronger regional connectivity, supporting residential demand and investment activity throughout the wider metropolitan area.

Infrastructure Continues to Support Long-Term Demand

One of the strongest themes across Vietnam’s property market remains infrastructure-led growth. Continued investment in transportation networks and urban expansion projects is improving accessibility between major economic centres and surrounding residential markets.

As connectivity improves, suburban and emerging growth areas are becoming increasingly attractive to both homebuyers and investors seeking more affordable entry points and long-term appreciation potential.

Outlook

Vietnam’s property market is expected to remain supported by urbanisation, infrastructure investment, and long-term housing demand. While Hanoi’s retail sector may continue adjusting to changing consumer trends, Ho Chi Minh City’s residential market is likely to remain resilient due to limited supply and strong buyer interest. For investors, opportunities increasingly lie in understanding the differing dynamics between cities and focusing on markets supported by strong economic and infrastructure fundamentals.