REAL ESTATE MARKET IS ‘FRAGILE’, COULD LEAD TO ANOTHER BUBBLE, EXPERTS SAY

Land fever in Phu Quoc, Long An, Nhon Trach and HCM City, a lack of houses for low income earners, and an oversupply of high-end apartments are the main features of today’s real estate market.

Investors continue pouring money into the high-end apartment market segment, even though there is a sufficient supply. With the selling price of VND45 million per square meter at minimum, the number of target customers is not high.

By the end of the first quarter of 2017, nearly 30,000 apartments of this kind had been marketed in the eastern part of HCM City alone. Buyers from Hanoi could partially ease the oversupply, but it is still not enough.

There is no official report about the number of apartments sold to those who have real demand for apartments. However, the figure is estimated at roughly 30 percent.

According to the National Finance Supervision Council (NFSC), in 2017, the bank loans disbursed for the real estate and construction sector amounted to 15.8 percent of total outstanding loans.

The State Bank of Vietnam (SBV) has tightened real estate credit. However, analysts doubt that its instruction will cause commercial banks to shrink back and tighten lending to the real estate sector.

The government in early 2018 showed its determination to obtain a GDP growth rate of 6.5-6.7 percent this year.

Analysts warn that the high GDP growth rate may lead to a ‘real estate bubble’ like the one in 2007 and 2010. The bubble was created by a high GDP growth rate and loose credit policy.

GDP in 2007 grew sharply by 8.48 percent, while HCM City gained an impressive 12.6 percent growth rate, the highest level in 10 years.

Currently, real estate credit accounts for 10.8 percent of total outstanding loans in HCM City.

Total outstanding loans in the city were VND1,750 trillion by the end of 2017, with real estate loans of VND198 trillion. The figure would be even higher if counting lending marked as ‘consumer loans’.

Nguyen Van Duc, deputy director of Dat Lanh Real Estate, said the real estate market is ‘fragile’.

Negative signs in the market appeared after the fire at Carina apartment block. After the accident, speculators rushed to sell products. However, despite the price decreases, there have been few transactions.

US$1=VND22,000

Source: VIR

Related News

INFRASTRUCTURE / CONSTRUCTION / LOGISTIC / PORT

VIỆT NAM-CAMBODIA TRADE GATHERS PACE TOWARDS $20 BILLION TARGET

Trade between Việt Nam and Cambodia continues to grow, remaining a bright spot and a key pillar of bilateral cooperation as the two countries aim to raise two-way trade to US$20 billion in the coming years. After setting a record of more than $11.3 billion last year, bilateral trade reached about $8.7 billion in the first eight months of this year, up 8.3 per cent year on year.

Oct 14, 2026

TECHNOLOGY

AI BEGINNING TO RESHAPE RECRUITMENT CRITERIA

Digital literacy is the only capability area in which fresh graduates meet employers’ expectations, according to a new report. Yet, it is also the standard rising fastest, as businesses increasingly expect new hires to use AI effectively in the workplace. Some 83 per cent of employers say AI has changed, or is beginning to change, their hiring criteria, while 94 per cent report higher expectations for digital and AI capabilities than they had two to three years ago.

Oct 14, 2026

INFRASTRUCTURE / CONSTRUCTION / LOGISTIC / PORT

ĐÀ NẴNG GREEN-LIGHTS US$105 MILLION THAI DEVELOPMENT DEAL

The central city has approved an investment proposal by Thailand’s WHA Group to develop infrastructure for the 400ha WHA Đà Nẵng Industrial Park project on two communes of Thăng Bình and Đồng Dương, with an investment of more than VNĐ2.7 trillion (US$105 million). The city said it approved WHA Industrial Development International's status as an investor in the project, which is expected to take place between 2027 and 2034.

Oct 14, 2026

VIETNAM ECONOMY INVESTMENT

MOBILE PHONE EXPORTS RISE 20% TO $51.8 BILLION IN FIRST NINE MONTHS

Exports of mobile phones and components rose 20 per cent year-on-year to nearly US$51.8 billion in the first nine months of 2026, with China, the US and Republic of Korea accounting for more than half of the total. Shipments to the three markets reached a combined $26.18 billion, or 50.6 per cent of total exports of the product group during the period, according to data from the Vietnam Department of Customs under the Ministry of Finance.

Oct 14, 2026

VIETNAM ECONOMY INVESTMENT

FRUIT AND VEGETABLE EXPORTS POISED TO HIT $10 BILLION IN 2026

Fruit and vegetable exports are on track to reach nearly US$10 billion in 2026, after rising 19.9 per cent year on year to nearly US$7.4 billion in the first nine months, driven by strong seasonal demand and abundant tropical fruit supplies. The Ministry of Agriculture and Environment said the growth reflected stronger international demand for fresh produce and processed agricultural products.

Oct 14, 2026

GARMENT / TEXTILE

TEXTILE EXPORTS FACE DUAL CHALLENGES OF SUSTAINING ORDERS AND BOOSTING EFFICIENCY AMID GROWING COMPETITION

Data shows that the textile and garment sector maintained its growth momentum in the first nine months of this year. The industry's total export turnover reached an estimated US$35.721 billion in the first nine months of this year, up 3.3 per cent year-on-year. Despite posting encouraging export figures, Vietnamese textile and garment enterprises continue to navigate unpredictable market variables.

Oct 14, 2026