Vietnam Residential Market Enters a More Selective Cycle Vietnam’s residential market opened 2026 in a transition phase, with prices still rising but liquidity cooling. This suggests the market is moving away from easy speculative gains toward a more disciplined cycle. Residential prices rose around 12% year-on-year in Q1 2026, while liquidity fell nearly 40%. However, there was no sign of distress selling, pointing to a healthy reset rather than a sharp downturn. Primary condominium prices reached new highs across major cities. In Hanoi, average prices were around USD 3,950 per sqm, up 30% year-on-year. In post-merger Ho Chi Minh City, prices averaged around USD 3,900 per sqm, supported by new supply and limited premium stock. Supply also improved. Ho Chi Minh City recorded around 8,010 new condo launches, up 104% year-on-year. Yet affordability remains the key challenge, with much of the new supply priced above the level affordable to mass-market buyers.  Strong Fundamentals, But Investors Are More Careful Vietnam’s underlying fundamentals remain supportive. The economy grew 8.02% in 2025, while real estate FDI reached USD 389.5 million in Q1 2026, representing around 7.2% of total inflows. However, investor behaviour is changing. Demand is now concentrating on projects with clear legal status, reliable construction progress and long-term value. Satellite locations such as Binh Duong and Ba Ria-Vung Tau are gaining attention as central city prices continue to stretch. Outlook Vietnam’s property market is expected to remain attractive, but more selective. With average gross rental yields at around 3.85%, the market is less of a pure income play and more of a capital appreciation and infrastructure-led growth story. Buyers with strong holding power, careful project selection and a long-term view are likely to be better positioned than short-term speculators. Download to see insights from other country marketsDownload

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. Download to see insights from other country marketsDownload

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. Download to see insights from other country marketsDownload