Supply increases sharply, but house prices are still difficult to reduce

Bình Nguyên |

Many projects have been legally cleared to help improve supply, but high input costs make it difficult for house prices to fall deeply.

The real estate market is recording many notable developments, supply is increasing and is forecast to continue to increase sharply in the coming years as legal obstacles are gradually removed. Experts believe that the market in the 2026-2030 period will enter a new development cycle with clearer differentiation, speculative cash flow gradually narrowing and real housing demand increasingly playing a leading role.

Commenting on market prospects in the coming years, Mr. Nguyen Quoc Hiep - Chairman of Global Real Estate Joint Stock Company said that real estate may enter a completely different development cycle compared to the previous period.

According to Mr. Hiep, the period 2020-2024 recorded a situation of supply not meeting demand, especially in the mid-range housing and apartment segments. The main reason comes from the slow progress of project approval and implementation, causing supply to not meet the actual needs of the market.

However, from 2025 onwards, along with the process of removing institutional obstacles, many projects have been restarted and newly licensed. This is expected to create a strong increase in supply in the 2027-2028 period.

However, according to Mr. Hiep, increased supply does not mean real estate prices will decrease. In the context that the construction industry is facing many difficulties, input costs such as labor and materials have increased by about 20%, causing project development costs to increase significantly.

Although supply is increasing, real estate prices are not decreasing accordingly. This is a rather special phenomenon, rarely occurring according to the usual rules of the market," Mr. Hiep assessed.

He also warned that if this situation persists and inventory is not effectively handled, the market may face great financial pressures for both businesses and the credit system, thereby arising risks to the overall stability of the market.

Meanwhile, Dr. Nguyen Van Dinh - Chairman of the Vietnam Association of Realtors (VARS) said that current management policies are increasingly aimed at the goal of developing a stable and healthy real estate market, limiting speculation and promoting products to serve real housing needs.

According to Mr. Dinh, a positive sign is that the supply of projects is gradually being removed. When many projects are legally cleared and return to the market, homebuyers and investors will have more choices. However, the simultaneous appearance of many projects also increases competitive pressure on selling prices, product quality and deployment capacity.

Notably, the Chairman of VARS said that speculative cash flow will tend to shrink in the near future.

He said that the Government is operating in a more flexible direction, continuing to prioritize capital flows for necessary areas, while strengthening control over areas that distort the market or show many speculative activities.

Regarding the price level, Mr. Dinh said that the State is making efforts to regulate house prices to approach a more reasonable level, creating opportunities for people to access housing. However, input factors such as land, labor, construction materials and fluctuations from the world market are still barriers that make it difficult for real estate prices to fall deeply.

According to the Chairman of VARS, the market is entering an increasingly strong differentiation phase. If previously it was only necessary to own real estate to be able to trade, now investors are not only interested in location but also focus on project quality and investor capacity. Small, fragmented projects with limited infrastructure will become increasingly difficult to compete.

The current market is aimed at real values: living truthfully, using truthfully, exploiting truthfully and creating real value. Only products that meet those criteria are attractive to investors and buyers," Mr. Dinh emphasized.

Bình Nguyên
RELATED NEWS

Reasonable rental housing helps reduce housing price pressure in big cities

|

According to experts, it is necessary to soon complete mechanisms and policies for the rental housing market to develop sustainably, meeting the increasing needs of people.

Developing rental housing helps bring house prices to a more reasonable level

|

According to experts, developing rental housing is an important solution to help expand housing opportunities for people and balance the real estate market.

Boarding house prices stagnate after a period of sharp increase, landlords reduce prices to retain customers

|

Rental prices in Hanoi are showing signs of slowing down, many landlords are reducing prices and offering more incentives to retain tenants for a long time.

The difference between Messi and Ronaldo at the 2026 World Cup

|

Messi and Ronaldo are having contrasting performances at the 2026 World Cup, originating from many different reasons.

Trade unions help improve skills, open up opportunities for workers

|

Trade unions coordinate vocational training, cultural supplementation, helping workers improve their skills, adapt to the labor market and increase development opportunities.

Today, 10th grade exam scores and specialized school benchmark scores in Ho Chi Minh City are announced

|

Today (June 19), the Ho Chi Minh City Department of Education and Training (GDĐT) announced the entrance exam scores for 10th grade in the 2026-2027 school year of more than 151,000 candidates taking the exam.

Journalist soldier of the Southwest region: Leaving the war with many wounds

|

Many wounded journalists in the Southwest region entered peacetime with silent wounds.

Reasonable rental housing helps reduce housing price pressure in big cities

Như hạ |

According to experts, it is necessary to soon complete mechanisms and policies for the rental housing market to develop sustainably, meeting the increasing needs of people.

Developing rental housing helps bring house prices to a more reasonable level

Như hạ |

According to experts, developing rental housing is an important solution to help expand housing opportunities for people and balance the real estate market.

Boarding house prices stagnate after a period of sharp increase, landlords reduce prices to retain customers

Khương Duy |

Rental prices in Hanoi are showing signs of slowing down, many landlords are reducing prices and offering more incentives to retain tenants for a long time.