Purchasing power in the real estate market sharply decreased

Bảo Chương |

Ho Chi Minh City - The real estate market is facing liquidity problems because new supply is still concentrated in the high-end and luxury segments, exceeding affordability.

Market research data from Knight Frank Vietnam shows that the Ho Chi Minh City apartment market recorded more than 7,150 new units for sale in Q2/2026, raising the total primary supply to more than 14,200 units, an increase of 156% quarter-on-quarter and about 35% compared to the same period last year.

Increased supply has brought the total market absorption to about 7,680 units, equivalent to an absorption rate of 39%. If calculated only in the inner city of Ho Chi Minh City, the number of apartments sold reached 1,781 units, with an absorption rate of only about 31%.

Compared to the previous quarter, purchasing power increased slightly thanks to liquidity from mid-range goods concentrated in Binh Duong, but still 24% lower than the same period last year. According to Knight Frank, liquidity in this quarter is slow mainly because new supply is still concentrated in the high-end and luxury segments, exceeding the affordability of most buyers.

This development is also recorded by One Mount Group. This unit statistics that in the second quarter, Ho Chi Minh City had about 11,000 new apartments for sale, an increase of 51% compared to the same period last year. However, according to the assessment of One Mount Group, under the impact of the macroeconomic context, the demand of the real estate market in the second quarter of 2026 shows signs of slowing down compared to the previous quarter. However, instead of uniform decline, liquidity is clearly differentiated: projects under 120 million VND/m2 continue to record positive absorption rates, while the price group higher than 120 million VND/m2 faces a longer selling process.

In Ho Chi Minh City, the market recorded 9,500 transactions, an increase of 16% compared to the same period last year. However, the absorption rate only reached about 50%, down 2% compared to the first quarter of 2025. In which, projects in the price segment from 60 - 120 million VND/m2 played a leading role, accounting for 53% of total market transactions and achieving an absorption rate of 59%. Conversely, the absorption rate of product groups with prices above 120 million VND/m2 only reached 20%. This reflects the trend of buyers becoming increasingly cautious about high-value products.

It is noteworthy that apartments are the segment that mostly meets real housing needs and has "occupied" the market for a long time, but is experiencing a sharp drop in liquidity. And segments that do not meet this demand such as land plots in suburban areas, land plots in areas far from the center are almost "frozen" in this period.

Research units believe that supply will continue to improve in the last months of the year, but liquidity will hardly break through if the price level remains high. The root cause of the market's sluggishness is financial pressure weighing heavily on homebuyers as interest rates rise, pushing monthly debt costs up, causing speculative cash flow to almost disappear from the market.

Investors today are no longer bold in "surfing", but are completely shifting to a defensive trend, prioritizing holding cash or looking for investment channels with higher liquidity and safety.

Meanwhile, the product structure in the market is clearly mismatched. New supply in the first half of the year is still mainly in the high-end and luxury segments, while the social housing and affordable housing segments serving real housing needs, which have extremely large demand, continue to be severely lacking.

Bảo Chương
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