In an interview with VietNamNet, Deputy Minister of Construction Nguyen Van Sinh forecast that in 2026, demand in the real estate market will concentrate on affordable housing and reasonably priced apartments in major urban centers.

Positive signs of recovery emerging

Looking back at 2025, what were the most notable highlights of the real estate market?

Deputy Minister Nguyen Van Sinh: The real estate market is one of the key pillars of the national economy, with spillover effects on more than 30 other sectors such as construction, finance, building materials, labor and interior furnishings. However, in recent years the Vietnamese economy in general, and the property market in particular, have faced significant difficulties.

Many real estate enterprises struggled in their investment and business activities due to unfavorable factors both domestically and internationally. Product structures remained imbalanced, with an oversupply in the high-end segment but a shortage of homes affordable to the majority of citizens, especially social housing.

In response, the National Assembly, the Government and the Prime Minister issued decisive directives and implemented synchronized solutions to remove obstacles, accelerate investment projects and increase housing supply across segments, particularly social housing.

Since 2024, the amended Land Law, the Housing Law and the Law on Real Estate Business have been passed by the National Assembly, creating a more coherent legal corridor and addressing long-standing overlaps and inconsistencies.

In 2025 alone, the Government issued six resolutions, while the Prime Minister promulgated one decision assigning social housing development targets, three official dispatches and one directive. The Prime Minister and Deputy Prime Ministers released around 15 conclusion notices and directives related to social housing development and real estate market management. These measures aimed to promote social housing, ensure social welfare, rebalance supply and demand, stabilize the property market and safeguard macroeconomic stability.

In addition, Resolution 01/NQ-CP clearly states that in 2026 the Government will focus on effectively implementing the National Housing Development Strategy and the project to build at least one million social housing apartments for low-income earners and industrial park workers in the 2021-2030 period. The target is to complete more than 110,000 social housing units in 2026 and reach the one million goal ahead of schedule by 2028.

Initial results show that the market has gradually recovered from an extremely challenging period, with encouraging signs of improvement.

How are these positive movements reflected in practice?

First, housing supply is trending upward again. The number of newly approved projects eligible for implementation is increasing, particularly in economically dynamic localities with well-developed infrastructure.

In 2025, total supply from commercial housing projects, social housing projects and infrastructure investment projects transferring land-use rights for self-built homes included 241 newly licensed projects with around 120,034 units or land plots. There were 1,862 projects under construction with approximately 771,984 units or plots, and 298 completed projects providing about 151,029 units or plots.

Second, investor confidence has gradually improved. Market liquidity has increased, while credit flows, corporate bonds and foreign direct investment into real estate have been gradually unblocked and stabilized compared to earlier periods.

Third, many stalled projects facing legal bottlenecks have been actively addressed under the direction of the Government and the Prime Minister, allowing them to resume and avoid wasting social resources.

Notably, social housing development has achieved tangible results, directly addressing the housing needs of low-income citizens and industrial park workers, and reinforcing social welfare policies. In 2025, the country completed 103,133 out of 100,275 planned social housing units, reaching 103 percent of the target, and commenced 90 new projects totaling 95,630 units.

From speculation-led to demand-driven growth

What remain the major bottlenecks of the market?

Although the legal framework has been significantly improved and synchronized, several bottlenecks still need to be resolved to ensure stable, healthy and sustainable development.

First is the mismatch between supply and demand. Housing supply remains concentrated in high-end and mid-range segments, while there is a shortage of homes affordable to the majority, especially for industrial park workers, low-income earners and social housing in urban areas.

Second, property prices continue to rise but do not always reflect intrinsic value, partly due to speculation, hoarding and price manipulation. Housing prices remain high relative to average incomes, exceeding the purchasing capacity of middle- and low-income urban residents.

Third, there is still no comprehensive database system covering housing supply, transactions, prices, taxation and credit. This creates difficulties in managing transactions and allows practices such as under-declaring transaction values to evade taxes, as well as spreading misleading information for profit.

2025 saw strong consolidation among real estate enterprises. How do you assess this process?

This is a necessary and inevitable filtering process as the market adjusts and restructures toward greater stability and sustainability. Enterprises with weak governance and heavy reliance on financial leverage were forced to scale back or exit the market. Those that remain tend to have stronger financial capacity, complete legal documentation and long-term development strategies focused on genuine housing demand.

The consolidation process in 2025 was therefore an essential adjustment, improving the quality of real estate enterprises, project standards and the overall sustainability of the market.

Reporter: What is your forecast for 2026?

The year 2025 serves as a crucial foundation, enabling the market to enter 2026 in a more stable and sustainable state. Major institutional changes, especially the implementation of laws on land, housing and real estate business, have gradually removed long-standing legal obstacles, unlocked supply and strengthened market confidence.

The Government’s focus on resolving stalled projects and accelerating public and inter-regional infrastructure investment is opening new development space for urban areas and real estate, particularly in suburban and satellite zones. Capital flows are improving, with credit managed flexibly. Real estate continues to be regarded as a long-term investment channel, though with greater caution and selectivity.

In 2026, the market is expected to be active yet prudent, with apartments and housing serving genuine demand continuing to play the leading role. Segmentation will become more pronounced, as buyers and investors prioritize projects with transparent legal status, synchronized infrastructure, real use value and reputable developers. This will lay the groundwork for healthier growth, reduced speculation and more sustainable development in the new phase.

Hong Khanh