Cash flow is being withdrawn from real estate investment channels

Bảo Chương |

High home loan interest rates affect psychology and investment cash flow in the real estate market.

A newly published survey by One Mount Group in Q2/2026 shows that the percentage of people choosing real estate as the leading investment channel decreased by 23% compared to the same period last year. For groups that do not have real estate investment needs, the main reason they give is insufficient finance and concerns about borrowing costs.

This organization assesses that the continuously increasing interest rate level and no signs of cooling down in the first half of the year shows that the financial environment is less favorable for homebuyers using leverage. With a floating interest rate level of about 11-14% per year, buyers tend to switch to more safe financial channels. Interest rate developments promote investment cash flow shifting from real estate to higher-yield channels such as savings deposits.

One Mount Group's report also pointed out that apartment purchasing power in Hanoi and Ho Chi Minh City showed signs of decline even though supply still increased sharply. In Ho Chi Minh City and the expanded area alone, the new apartment supply reached 11,100 units, mainly from the old Binh Duong area. The absorption rate continued to decrease in the luxury and mid-range segments. Ho Chi Minh City's central area alone recorded only 2,400 transactions, down 13% compared to the same period.

The gloomy developments in the real estate market were also recorded by the Vietnam Association of Realtors (VARS). VARS said that the whole country had about 98,000 apartment and low-rise building products offered for sale in the first half of the year, an increase of 50% year-on-year. However, the consumption rate only reached 49%, a sharp decrease compared to the same period last year.

Purchasing power in the real estate market is forecast to be unlikely to break through in the near future when home loan interest rates are still maintained around the threshold of 10%/year. The current interest rate level is only enough to help buyers' psychology be more stable than at the beginning of the year, but not attractive enough to trigger a new investment wave.

Faced with difficulties, instead of trying to open for sale at all costs, many investors decided to postpone sales plans to choose a more suitable time. Real-world surveys show that some investors who own luxury apartment baskets in the East and South of Ho Chi Minh City have extended the reservation period, instead of moving to the official opening phase as planned.

According to information recorded from many brokerage units in Ho Chi Minh City, the next phases of eco-urban super projects or apartment complexes with thousands of units are all announced to be extended for release. Kick-off events, project introductions... that were scheduled were also canceled or switched to internal agent training to wait for the right time.

In that context, experts predict that when projects are compressed, then massively sold out, it will create very strong competition in finding customers. Large investors are forced to compete fiercely to win market share.

Currently, although there are still no signs that investors are reducing selling prices, in fact, many investors have begun to launch demand stimulus policies such as discounts of up to 10% for old customers when buying new project products; extending the payment schedule for a long time, supporting fixed loan interest rates for many years, or deep discounts for quick payment methods...

However, through exchanges with many businesses, it is known that although stimulating demand is promoted, not every project sells goods.

Bảo Chương
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