Although several segments have shown positive signs, the market still faces challenges in cash flow, investor confidence and supply-demand balance

Efforts to remove legal bottlenecks

In 2026, Vietnam’s real estate market has gained new momentum under a series of government measures aimed at resolving legal obstacles, from land use fees and project-related issues to promoting social housing and completing the national land database.

According to Hoang Thu Hang, Deputy Director General of the Housing and Real Estate Market Management Agency under the Ministry of Construction, a series of important legal documents related to real estate and housing were issued in the first quarter of 2026 alone, including three Government decrees, three Government resolutions, one directive from the Prime Minister, and one circular from the Ministry of Construction. The issuance of these policies within a short period reflects the Government’s strong determination to remove legal bottlenecks, which have long been considered the main reason behind stalled real estate supply.

Among the new policies, Decrees 49, 50, and 54/2026/ND-CP have drawn particular attention as they were issued to guide the implementation of Resolution 254/2025/QH15, focusing on resolving obstacles in enforcing the Land Law, especially issues related to land use fees and land rental fees, while continuing to improve the legal framework for housing and real estate business activities.

Government resolutions have also directly addressed some of the market’s biggest bottlenecks. The resolution on social housing development introduces mechanisms to resolve obstacles in project implementation, while the resolution on land use rights auctions aims to address difficulties in residential land allocation.

In particular, the assignment of social housing development targets for the 2026-2030 period is expected to create additional pressure and motivation for localities to accelerate supply.

From a data management perspective, Directive 05/CT-TTg issued by the Prime Minister on accelerating land measurement, land registration, cadastral records, and the development of the national land database is regarded as an important foundation for improving market transparency.

At the same time, Circular 08/2026/TT-BXD issued by the Ministry of Construction, which revises and supplements regulations in the housing sector, is expected to further improve legal consistency and address practical obstacles arising during implementation.

According to the Ministry of Construction, the impact of these new policies is expected to become clearer in the coming months as regulations are put into practice and help unlock more projects.

Recovery signals emerge as market divergence widens

After a long period of slowdown, Vietnam’s real estate market has shown signs of recovery in 2026, with many property companies reporting improved business results.

According to market observations, growth has mainly come from real estate transfers, financial income, and product handovers from older projects. At the same time, many developers have restarted new subdivisions within large-scale projects, reflecting efforts to revive business activity.

Vo Huynh Tuan Kiet, Director of Residential Project Marketing at CBRE Vietnam, said 2026 will be a period of strong market screening and restructuring. According to him, only companies with solid financial strength and strong legal foundations will be able to survive.

In reality, the market picture is not entirely positive. In the first quarter of 2026, as many as 726 real estate companies dissolved, equivalent to an average of more than 240 businesses per month, reflecting strong market screening pressure. Some companies continued to record declining revenue, losses, and prolonged negative operating cash flow.

According to Dr. Nguyen Van Dinh, Vice Chairman of the Vietnam Real Estate Association, the real estate market in the first quarter of 2026 recorded many positive developments as the legal framework continued to improve. However, he believes the more important issue is that the market is entering its strongest screening phase in many years.

Buyer behavior and sentiment are also changing significantly. As capital costs remain high and liquidity has not fully recovered, buyers have become increasingly cautious, prioritizing transparent legal status, stable cash flow potential, and long-term value appreciation.

Behind the recovery signals, the market’s core issue remains cash flow. Economic expert Dr. Tran Dinh Thien said the market is entering a period of cash flow restructuring, creating new opportunities while also placing higher demands on businesses. Dr. Nguyen Van Dinh also acknowledged that capital has started returning to the market, but not yet strongly enough to create a clear growth cycle.

BIDV Chief Economist Dr. Can Van Luc, a member of the National Financial and Monetary Policy Advisory Council, said the market is receiving additional support from macroeconomic conditions, public investment, institutional reforms, and improving capital flows. According to him, public investment disbursement in 2026 is expected to exceed VND1 quadrillion (US$40 billion), with most funding directed toward infrastructure development, serving as a “catalyst” for the market. Even so, for these supporting factors to translate into a meaningful recovery, the market still needs to overcome major barriers related to capital costs, credit access, and prolonged legal obstacles.

Positive signs in the first months of the year suggest Vietnam’s real estate market may have passed its most difficult period. However, the ability to achieve a sustainable recovery will depend on the pace of legal resolution, liquidity improvement, and the restructuring capacity of businesses within the industry.