VIETNAM’S REAL ESTATE MARKET: LAND, LAW AND LIQUIDITY
Vietnam’s real estate market heats up as business confidence rebounds. Over the first seven months of 2025, nearly 3,000 new property businesses launched, up 7% from the same period last year, according to data from the General Statistics Office and the State Bank of Vietnam.
Nearly 3,000 firms that had previously shut their doors are now back in business, a sharp 51% rebound that points to renewed confidence across the sector. Even temporary business closures are edging down, falling 2% year-on-year. Foreign capital is flowing in steadily, and domestic banks are leaning into the momentum. Credit growth for real estate loans is running hot, with some lenders reporting increases of 20% to 30%, roughly three times the average pace across the banking system.
VIETNAM’S CONDO MARKET GOES UPSCALE WHILE AFFORDABLE HOUSING STALLS
In the first half of 2025, high-end and luxury apartments made up 62% of new supply, according to the Vietnam Association of Realtors. That is a five-point jump from last year and adds more than 10,000 upscale units to the market. The luxury slice alone grew by 16 points. Despite premium pricing, 62% of new launches have already been absorbed, with most sales concentrated at the top end. Well-heeled local buyers and foreign investors have continued to drive demand, particularly in prime urban areas where quality inventory is scarce.
Affordable housing is struggling to keep pace. Only 22,619 social housing units were completed in the first five months of the year, just 22.6% of the government’s full-year target. A 145 trillion VND lending package designed to support this segment has seen minimal uptake, with just 3.4 trillion disbursed so far despite four rate cuts. Resolution 201, passed earlier this year, is expected to clear some of the red tape that has been holding social housing back. Should it succeed, it may finally provide lower-income home seekers with a meaningful opportunity for ownership.
VIETNAM WEIGHS POLICY SHIFTS TO UNLOCK FOREIGN CAPITAL FOR REAL ESTATE
The Ho Chi Minh City Real Estate Association (HoREA) is pushing for a change that would allow land-use rights to be mortgaged at foreign banks, which is a move that could open a much-needed channel to long-term, lower-cost international capital. Under the current law, only banks licensed in Vietnam can hold real estate collateral. That has left both domestic firms and overseas Vietnamese investors cut off from global lenders, limiting access to deeper, more competitive capital pools.
HoREA is calling for an amendment to Article 37 of the 2024 Land Law to lift that restriction while keeping two guardrails firmly in place. First, any mortgage with a foreign bank would need to go through a Vietnamese credit institution appointed by the State Bank. That intermediary would ensure the transaction stays within regulatory bounds and domestic oversight. Second, all disputes would be governed strictly by Vietnamese law. This is reaffirming national jurisdiction over land while aligning with international legal standards on real estate sovereignty.
Loosening this rule could signal Vietnam’s intent to step more confidently into global capital markets, without compromising control over its most sensitive asset class. If the proposal gains traction, it could reshape how real estate is financed in Vietnam and who gets to participate.
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