Customers study a real estate project. Photo by The Investor/Vu Pham.

In a recent report, the ministry said that the market in 2025 has shown many positive developments. Numerous real estate projects have had legal obstacles resolved and have resumed implementation, helping to unlock resources and create new supply for the market.

Recently-issued legal policies have had a strong impact on the real estate market in general and the housing market in particular. Many reform-oriented policies are expected to create more room for market development while addressing existing difficulties.

In terms of supply nationwide, there are 3,297 projects including commercial housing, social housing, and land plots, with a total of 5.9 million units and a total investment of VND7,420 trillion ($281.91 billion).

Regarding prices, in recent years, apartment units, townhouses, villas, and residential land have recorded high price hikes, averaging about 10-15% per year, with some periods seeing increases of up to 30%.

Prices of other real estate segments such as tourism, resort and commercial properties, offices, and industrial parks have also increased annually, with average growth of around 5-10% per year, significantly lower than that of housing and residential land.

Outstanding real estate credit stood at about VND4,100 trillion ($155.77 billion) as of the end of August 2025. Of this, outstanding credit for real estate business activities exceeded VND1,800 trillion.

As many as 136 out of troubled 788 projects had been resolved, accounting for 17.3%, while efforts continue to address difficulties for the remaining 652 projects. Among these, 621 projects fall under local authorities’ jurisdiction, representing 95%.

Real estate prices do not reflect true value

Deputy Minister of Construction Nguyen Viet Hung stated that real estate transaction prices tend to increase year-on-year but do not accurately reflect the true value of properties. This is due to hoarding, price manipulation, and speculation, which inflate price levels and cause supply-demand imbalances.

In addition, the structure of real estate products remains imbalanced across segments, with a shortage of housing priced within the affordability of the majority of the population. The implementation progress of many projects remains slow due to obstacles related to investment procedures, land issues, and planning.

“The capital flow into the real estate market still faces difficulties, with potential risks arising from excessive credit growth in real estate and real estate business activities compared to overall industry growth; challenges in controlling indirect credit flows into real estate; increased risks when real estate and housing prices rise far above their real value; and large outstanding corporate bond debts and maturing bond obligations of major real estate enterprises,” Hung noted.

He also pointed out that many localities have not paid sufficient attention to real estate market management, resulting in inadequate monitoring and inspections, delayed correction of violations, and incomplete market information and data.

Representatives of the Vietnam Real Estate Association (VNREA) and the Ho Chi Minh City Real Estate Association (HoREA) affirmed that the real estate market is recovering, with absorption rates of new projects reaching approximately 68-70%. Prices have stabilized and moved sideways, with no signs of decline.

Meanwhile, in response to voters regarding the causes of rising real estate prices, the Ministry of Construction emphasized that real estate prices, especially housing and residential land, have increased beyond the affordability of the majority of people.

This situation results from multiple factors, including rising project investment costs (particularly land-use fees), limited supply due to slow project implementation and procedural and capital constraints, and an inappropriate product structure with a shortage of affordable housing and social housing for low-income groups.

“There are many reasons behind the sharp rise in real estate prices. Among them is the behavior of certain developers, investors, and brokers who hoard properties, inflate prices, speculate, and distort market information,” the ministry stressed.

Regarding solutions, the ministry stated that in 2026, it will focus on researching and proposing amendments to the Housing Law and the Law on Real Estate Business; effectively operating the housing and real estate market information system; completing databases to ensure accuracy, completeness, cleanliness, real-time updates, synchronization, and connectivity from central to local levels.

It will also enhance transparency of market information; facilitate data access and sharing among agencies, organizations, and individuals; promote digital transformation in housing and real estate business; and continue to coordinate with relevant ministries and sectors to propose measures to control and curb real estate prices.