According to the Ministry of Construction, real estate prices have surged but still do not reflect actual value, remaining far above the average income of most citizens. Practices such as hoarding, price inflation, and speculation are raising overall housing costs, distorting supply-demand balance.

Apartment prices remain high

In the first nine months of 2025, apartment prices in Hanoi and Ho Chi Minh City stayed high, showing an upward trend compared to last year.

In Hanoi, the average primary sale price in Q3/2025 ranged from VND 70–80 million/m² (USD 2,900–3,300), up 5.6% from Q1/2025 and 33% year-on-year. Some luxury projects recorded prices of VND 150–300 million/m² (USD 6,200–12,500).

In Ho Chi Minh City, the average primary sale price held steady at around VND 75 million/m² (USD 3,100), but was still 36% higher than the same period in 2024. Premium projects listed prices starting from VND 150 million/m² (USD 6,200).

Townhouses and villas in Hanoi commonly ranged between VND 100–200 million/m² (USD 4,100–8,300). In prime locations, prices surpassed VND 300 million/m² (USD 12,500).

In Ho Chi Minh City, primary sales were priced between VND 230–300 million/m² (USD 9,500–12,500), with certain central or newly developed areas exceeding that.

For land plots, Hanoi saw prices between VND 60–100 million/m² (USD 2,500–4,100), reaching over VND 200 million/m² (USD 8,300) in districts like Dong Anh, Long Bien, and Hoai Duc. Ho Chi Minh City plots ranged from VND 60–120 million/m² (USD 2,500–5,000), while riverside and Thu Duc areas exceeded VND 200 million/m² (USD 8,300).

Da Nang’s land prices were around VND 40–60 million/m² (USD 1,600–2,500), while in Hai Phong they ranged from VND 40–70 million/m² (USD 1,600–2,900).

The Ministry estimated over 430,700 transactions in nine months, up just 1% year-on-year. Transactions rose in the first half of the year but slowed later due to buyer caution and market adjustments.

Real estate prices diverging from actual value

More than 1,070 commercial housing projects are underway nationwide, increasing supply. Yet most projects are mid- to high-end, lacking affordable housing, especially for industrial workers, low-income urban residents, and social housing.

The Ministry stressed that prices continue to rise but remain disconnected from real value and are still too high for the majority. Speculation, hoarding, and artificial price hikes persist, raising housing costs and pushing homes beyond citizens’ reach.

To address this, the Ministry urged central and local agencies to prioritize approving new projects, particularly social housing, in the last four months of the year.

Plans include establishing a National Housing Fund in cooperation with the Ministry of Finance, revising laws on investment, bidding, and taxation, and easing legal bottlenecks.

Meanwhile, the State Bank is rolling out a VND 120 trillion (USD 5 billion) credit package and expanding preferential loans for first-time homebuyers under 35 with favorable rates and terms.

Hong Khanh