Apartment prices fall, cash flow shifts from residential land to apartments

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Apartment prices have cooled down, while the trend of shifting from landed houses to apartments continues to increase thanks to affordable prices that are more suitable for real housing needs.

The apartment market is entering a phase of adjustment as many projects simultaneously reduce prices in the secondary market. However, the average apartment price is still at a high level, real housing demand continues to play a leading role in the market and the trend of shifting from landed houses to apartments is increasingly clear.

According to Savills Hanoi, 2026 is expected to receive a very abundant supply of apartments with about 70,000 units from 91 projects opened for sale. Most of the primary supply is concentrated in suburban areas such as Dong Anh, Hoai Duc and Hoang Mai.

In the context of increasing supply, the primary market is recording notable changes. Mr. Tran Minh Tien - Director of One Mount Group Market Research and Customer Understanding Center said that the market has "decreased" significantly after a period of hot growth, and the trend of investment cash flow has become more cautious.

The market no longer operates according to the'quick buy - quick sell' mentality but is shifting to a more selective state. Short-term cash flow is weakening, giving way to real housing needs and long-term asset accumulation," Mr. Tien emphasized.

According to Mr. Tien, in the remaining quarters of 2026, the market will continue to be led by real housing demand, in the context that capital costs have not decreased significantly and investor sentiment is still cautious. Products with clear legal status, ready-to-use and suitable for the affordability of the majority will continue to prevail.

Notably, the trend of shifting from landed houses to apartments is predicted to continue, especially in the group of young customers and families with housing needs in large urban areas. Compared to landed houses, transferred apartments currently still have a more affordable price, are easier to use financial leverage and are less affected by factors related to planning in the future.

However, although the market has seen a wave of price reductions in some projects, the opportunity to access housing for people with real needs, especially the low-middle income group, is still very limited. The current 5-10% reduction is mainly a technical adjustment compared to the peak price range of the previous year. After three consecutive years of strong increase, the general level of apartment prices is still at a high level compared to the affordability of most people.

The differentiation in the Hanoi apartment market is also increasingly clear. While a part of speculators face financial pressure due to using large leverage, many investors holding assets for a long time have chosen to take profits. Meanwhile, people with real housing needs still face many difficulties in the journey of owning a house.

Ms. Pham Thi Mien - Deputy Director of the Vietnam Real Estate Market Research and Evaluation Institute said that in 2026, the market is entering a restructuring process under the impact of the macroeconomic context, interest rate levels, credit policies and the completion of the legal framework.

According to Ms. Mien, although supply continues to increase, selling prices are still maintained at a high level, while transactions are increasingly selective between projects and segments. Notably, buyers' psychology has changed significantly: "If previously many investors spent money with the expectation that prices would continue to increase, now real housing demand and the ability to exploit cash flow from renting have become factors leading to investment decisions. Buyers also spend more time learning about legal issues, project progress, investor reputation and actual exploitation before spending money.

According to the expert, "the psychology of fear of buying wrong is gradually replacing the psychology of fear of missing opportunities". Buyers currently prioritize assets that can create good cash flow, liquidity and sustainable value in the long term instead of investing based on short-term price increase expectations as before.

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