HOW CAN REAL ESTATE MARKET LIQUIDITY BE IMPROVED?

Supply Recovers, but Transactions Remain Under Pressure

According to the Ministry of Construction’s report on the housing and real estate market in the second quarter of 2026, the supply of housing projects continued to show positive developments. Nationwide, 113 new commercial housing projects were licensed for construction, providing approximately 103,205 units. In addition, 131 projects, equivalent to around 59,073 units, became eligible for sales of future residential properties.

However, increased supply has not translated into an across-the-board improvement in liquidity. During the second quarter, approximately 100,005 real estate transactions were successfully completed nationwide, down 28.5% from the previous quarter and 36.3% year on year. Inventories reported across 25 out of 34 provinces and cities stood at approximately 39,284 units and land lots, indicating that developers continue to face pressure to absorb available inventory.

This situation reflects a gap between the amount of supply entering the market and actual purchasing capacity. Buyers are becoming more cautious amid high property prices, borrowing costs, and large payment obligations within short periods.

Property Prices Need to Match Buyers’ Affordability

One of the factors directly affecting market liquidity is the gap between property prices and buyers’ financial capacity. In major cities, housing prices remain high, while financing costs add further pressure to home-buying decisions.

According to figures released by the Ministry of Construction, average apartment prices in Hanoi and Ho Chi Minh City reached approximately VND 123 million and VND 108 million per square meter, respectively, in the second quarter of 2026. Although secondary-market prices have shown signs of adjustment in some areas, the overall price level remains a challenge for many owner-occupiers.

Against this backdrop, developers need to assess market absorption capacity from the early stages of project research and development. Identifying the right customer segments, apartment sizes, amenities, locations, and price points can help projects better align with actual market demand.

Rather than relying primarily on discounts during the sales period, developers can focus on building product value and establishing an appropriate pricing structure from the outset. A reasonable price that reflects the product’s quality, location, and functionality provides a stronger foundation for sustainable transactions.

More Affordable Products Could Broaden Purchasing Power

Differences in financial capacity among buyers are creating greater demand for a more diversified supply of housing. While some customers continue to seek high-end properties, many owner-occupiers are looking for options that better fit their budgets and borrowing capacity.

Developing reasonably priced housing, appropriately sized commercial apartments, and products designed around actual housing needs could therefore help broaden the customer base. For developers, the focus is not simply on revenue generated from each individual unit, but also on sales velocity, capital recovery, and the overall efficiency of the project.

To achieve this, market data should be incorporated throughout the project development process. From demand surveys and analysis of income levels and customer behavior to determining product mix, development decisions should be based on the compatibility between the value offered and buyers’ actual ability to pay.

Payment Policies Need to Reduce Cash Flow Pressure

Even when selling prices are adjusted, buyers may still face financial difficulties if they are required to make large payments within a short period. Payment structures therefore need to be considered alongside headline selling prices.

Developers may consider solutions such as:

• Spreading payments across different stages of construction.
• Adjusting the initial payment ratio to better match customers’ financial capacity.
• Working with financial institutions to develop transparent and appropriate home-loan solutions.
• Providing clear information on interest rates, loan terms, and related costs.

These measures do not necessarily reduce the selling price, but they can give buyers greater flexibility in managing their cash flow. The effectiveness of each approach will still depend on lending conditions, income levels, financial profiles, and the developer’s execution capacity.

According to the Ministry of Construction, real estate lending rates in the second quarter of 2026 generally ranged from around 12% to 14% per year, while some floating-rate loans reached 15%–16% per year. Financing costs therefore remain an important factor affecting both housing affordability and purchasing decisions.

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