APARTMENT AND LAND PRICES MAY FACE GREATER DOWNWARD PRESSURE FROM Q3 2026

Vietnam’s real estate market is witnessing a growing number of apartment and land listings being offered at discounted prices or sold at a loss. However, experts believe this is not yet a widespread market trend, but rather a phenomenon concentrated among investors who relied heavily on financial leverage.

According to Mr. Dinh Minh Tuan, Southern Regional Director of Batdongsan.com.vn, distressed-property listings could become more common from the third quarter of 2026 if lending rates remain high. The most affected group will likely be investors who financed property purchases through significant bank borrowing.

Currently, the land plot segment is experiencing slow liquidity, while apartment transactions have also moderated, though demand remains present. In the townhouse and detached-house market, genuine housing demand is increasingly replacing speculative investment activity.

Ms. Pham Thi Mien, Deputy Director of the Vietnam Institute for Real Estate Market Research and Evaluation, noted that loss-cutting sales have been observed since the beginning of 2026. These cases are primarily linked to investors who entered the market during the boom period and utilized substantial financial leverage. As their loans move into the principal repayment stage, mounting financial pressure has forced many to sell assets in order to restructure cash flow.

In addition, a number of investors were driven by FOMO (Fear of Missing Out) during the market’s peak period, purchasing properties at premium prices with expectations of quick profits. When those expectations failed to materialize, many were left with no choice but to lower prices in order to exit their investments.

Experts predict that selling pressure may intensify in the coming months as more loans reach maturity. Nevertheless, price corrections are expected to remain localized rather than spread across the entire market.

Mr. Vo Hong Thang, Deputy CEO of DKRA Consulting, stated that Vietnam’s real estate market in the first half of 2026 has been significantly impacted by difficulties in accessing capital, while mortgage and property loan interest rates have remained elevated. If these challenges persist, further price adjustments may occur in selected segments.

Land plots located in suburban and outlying areas, particularly those with limited infrastructure connectivity and weak end-user demand, are expected to face the greatest pressure. In contrast, mid-range apartment projects in major urban centers and income-generating properties are likely to remain resilient thanks to stable real housing demand and rental potential.

Overall, as loans taken during the low-interest-rate period of 2024–2025 begin to mature, more highly leveraged investors may be forced to adjust profit expectations or even accept losses to liquidate assets and recover cash flow. However, these developments are generally viewed as localized corrections rather than signs of a broad-based decline across Vietnam’s real estate market.

Source: Lao Dong Newspaper