Vietnam’s property sales have fallen to their weakest since the pandemic-era slump, as soaring home prices and higher borrowing costs erode affordability, especially in Hanoi.
Real estate sales in Vietnam sank to their weakest level since the market slowdown seen during the COVID-19 period, as a sharp run-up in housing prices and higher financing costs strained affordability for would-be buyers.
New data from the third quarter show that transaction activity fell to the lowest point recorded since 2021, underscoring how quickly demand has cooled even as some developers continue to market new projects. Industry watchers say the decline reflects a widening gap between what households can pay and what sellers are asking, particularly in major cities where incomes have not kept pace with the cost of housing.
Hanoi illustrates the pressure on buyers. Primary apartment prices in the capital — the rates charged for newly launched units — have surged to almost 2.5 times their 2021 level, according to property services firm Savills. The jump over four years has pushed many middle-class families further from homeownership, forcing some to delay purchases, seek smaller units, or move their searches to more distant districts.
The affordability squeeze has been compounded by more expensive borrowing. As mortgage and other lending rates rise, monthly repayments increase, cutting into household budgets and reducing the pool of eligible borrowers. For many potential buyers, the combination of elevated sticker prices and higher interest costs has effectively re-priced the market beyond reach, translating into fewer completed deals.
The third-quarter slump also suggests that price momentum alone is not enough to keep sales flowing. While supply in certain segments remains limited and developers may be reluctant to discount, buyers appear increasingly cautious — a dynamic that typically results in longer selling times and more negotiations, especially for units that are not considered “must-have” locations or sizes.
Although the report points to a broad downturn in activity nationwide, the data highlight how concentrated the affordability challenge has become in urban apartment markets. With Hanoi’s new-home prices rising so steeply since 2021, the capital has become a bellwether for the wider country: when buyers step back there, the chill tends to spread.
Why it matters
Housing is one of the largest financial commitments for Vietnamese households, and weaker transaction volumes can ripple across construction, banking and consumer spending. If prices stay high while borrowing costs remain elevated, policymakers and developers may face pressure to find ways to improve affordability. The next signals to watch are whether sellers begin to offer meaningful discounts and whether credit conditions ease enough to bring buyers back.