Real Estate Briefing: Young Buyers Hesitate on Mortgages as Land Auctions Diverge and Projects Accelerate
The real estate market is showing mixed developments in demand, capital flows and access to housing. Apartment prices have risen far beyond the savings capacity of many buyers, while fluctuating mortgage rates, reaching 12.4% per year in one case, have made young people cautious about taking on loans lasting decades despite their desire for home ownership. Many developers are also seeking to transfer projects to recover capital and reduce financial pressure, while buyers are prioritizing assets that can be deployed quickly and generate cash flow. HoREA has proposed adding a mechanism allowing investors to negotiate for land-use rights to the draft Land Law, with the aim of removing obstacles for thousands of commercial housing projects.
Land auctions continue to attract attention, but prices are becoming increasingly differentiated. A plot of more than 3,300 square meters in the Him Lam Thach Ban residential area in Long Bien is scheduled for auction on December 5, with a starting price of 55 million VND per square meter. In Thanh Oai, 20 plots recorded a highest winning price of more than 56 million VND per square meter, nearly 40% below the peak level at the end of 2024. Meanwhile, one bidder won nine plots in Toan Luu Commune, Ha Tinh, for nearly 21 billion VND after the starting price was sharply reduced through two unsuccessful auctions. In Ho Chi Minh City, a nearly 110-hectare site at the expanded Le Minh Xuan Industrial Park is planned for social housing development and is expected to break ground on December 30 after legal procedures are completed. The city also recorded 3,297 apartments purchased by foreign organizations and individuals from the post-merger period through the end of October, including 316 units that had received ownership certificates.
In the project segment, a development of nearly 3,800 apartments in Thu Thiem is expected to require total investment of more than 39.8 trillion VND, including the starting price of land and existing assets as well as projected construction costs. After more than two years of development, Sun Urban City has gradually taken shape with apartments, townhouses, parks and entertainment facilities, while Eco Retreat is introducing 304 low-rise products in the central Rung Hong subdivision. Van Phuc Group is offering a nearly 8-billion-VND apartment as a gift to buyers at Diamond Sky until November 1, 2027, while WorldHotels has joined the operation of Lusso Saigon to enhance residents’ experience and the project’s rental appeal. The Emerald 68 began handing over apartments at the end of October, and Newtown Diamond is leveraging its coastal location in Da Nang. Residential design trends also feature split-level homes, garden houses combining traditional tile roofs with modern architecture, and box-shaped homes with interlocking room volumes that improve natural light and views.
Land auctions continue to attract attention, but prices are becoming increasingly differentiated. A plot of more than 3,300 square meters in the Him Lam Thach Ban residential area in Long Bien is scheduled for auction on December 5, with a starting price of 55 million VND per square meter. In Thanh Oai, 20 plots recorded a highest winning price of more than 56 million VND per square meter, nearly 40% below the peak level at the end of 2024. Meanwhile, one bidder won nine plots in Toan Luu Commune, Ha Tinh, for nearly 21 billion VND after the starting price was sharply reduced through two unsuccessful auctions. In Ho Chi Minh City, a nearly 110-hectare site at the expanded Le Minh Xuan Industrial Park is planned for social housing development and is expected to break ground on December 30 after legal procedures are completed. The city also recorded 3,297 apartments purchased by foreign organizations and individuals from the post-merger period through the end of October, including 316 units that had received ownership certificates.
In the project segment, a development of nearly 3,800 apartments in Thu Thiem is expected to require total investment of more than 39.8 trillion VND, including the starting price of land and existing assets as well as projected construction costs. After more than two years of development, Sun Urban City has gradually taken shape with apartments, townhouses, parks and entertainment facilities, while Eco Retreat is introducing 304 low-rise products in the central Rung Hong subdivision. Van Phuc Group is offering a nearly 8-billion-VND apartment as a gift to buyers at Diamond Sky until November 1, 2027, while WorldHotels has joined the operation of Lusso Saigon to enhance residents’ experience and the project’s rental appeal. The Emerald 68 began handing over apartments at the end of October, and Newtown Diamond is leveraging its coastal location in Da Nang. Residential design trends also feature split-level homes, garden houses combining traditional tile roofs with modern architecture, and box-shaped homes with interlocking room volumes that improve natural light and views.