Vietnam’s real estate market is entering a new cycle, driven by policy changes, shifting buyer preferences, and investment flows toward genuine housing demand, quality assets and sustainable cash flows.
Some villas in Hanoi. Photo courtesy of VietNamNet newspaper.
In an industry report dated August 10, the research arm of MB Securities JSC (MBS), said Resolution 21-NQ/TW, issued by the Party Central Committee on July 28, 2026, to replace the 2022 Resolution 18, sets out a number of orientations for amending the Land Law and Housing Law to resolve bottlenecks and promote sustainable development.
Among the key policy directions, MBS highlighted efforts to address legal obstacles related to land allocation, land valuation and the delegation of authority to local governments to speed up project implementation; state oversight and regulation of land prices; setting usage periods for apartment buildings; and long-term land allocation for commercial housing projects, particularly apartment and rental housing developments.
MBS said policies on real estate prices aim to cool the market by increasing supply, with a particular focus on apartments. The priority given to long-term land allocation for commercial housing, especially apartment projects, also signals an effort to boost supply as available land becomes increasingly scarce.
Resolution 21 also raises the possibility of taxing profits from real estate transactions and imposing higher taxes on vacant or unused properties. According to MBS, higher taxes on idle properties are intended to curb speculation.
These policy directions come as the real estate market itself is undergoing a shift.
In a recent report, Avison Young Vietnam said the country’s real estate market was moving away from high-growth expansion towards value creation, with asset quality, operational efficiency, and sustainable cash flow playing an increasingly decisive role.
Genuine housing demand becomes the foundation
According to Avison Young, after a sharp slowdown, the housing market is undergoing a necessary adjustment to restore confidence and improve absorption rates.
Rather than cutting prices directly, many developers have opted for flexible payment policies to stimulate demand. Meanwhile, on the secondary market, higher borrowing costs are forcing investors to lower their price expectations to accelerate transactions.
Vietnam’s housing needs remain largely unmet, but buyers’ criteria are becoming increasingly diverse. In addition to price, location and appreciation potential, owner-occupiers are paying greater attention to legal status, quality of life, infrastructure connectivity, green spaces, and amenities.
As a result, Avison Young said developers that deliver projects on schedule, provide clear legal information and can build fully developed residential communities will have an advantage in attracting buyers.
Looking ahead, mid-range apartments, affordable housing, rental housing and social housing are expected to become key segments, as genuine housing demand and long-term asset accumulation provide the two main foundations for a recovery in the residential market.
From a policy perspective, the directions highlighted by MBS also point towards increasing supply and meeting genuine housing demand. One issue that MBS has paid particular attention to is the proposed regulation on the usage period of apartment buildings.
Based on international practices, MBS forecasts that apartments developed under the new law could have usage periods of 50 to 99 years. After the period expires, investors could be given priority to pay an additional fee to renovate and redevelop the project. MBS stressed that this was a forecast, as no specific regulations on the matter have yet been introduced.
In the short term, MBS said demand for apartments with indefinite ownership could increase before the new regulations take effect. However, the increase may be limited as investors remain cautious and interest rates are relatively high.
Over the longer term, MBS said usage-period restrictions could make leasehold apartments less attractive to investment capital, as investors tend to favor assets that can be held for an extended period. This could benefit low-rise housing and land plots.
Asset quality to determine cash flow
The focus on asset quality and operational efficiency is not limited to housing, but is also emerging across other real estate segments, including industrial, retail and office properties.
From the perspective of institutional capital, Avison Young has observed changes in investment strategies. Rather than focusing on expanding portfolios, investors are increasingly prioritizing improvements in net operating income (NOI), reducing financial leverage, and pursuing joint ventures instead of acquiring assets outright.
David Jackson, CEO of Avison Young Vietnam, said the shift reflected a change in investment thinking from scale expansion towards value creation, with asset quality, operating performance, and sustainable cash flow becoming the three most important factors.
Taken together, the assessments by MBS and Avison Young, although approaching the market from different angles, point to a sharper differentiation in Vietnam’s real estate market.
While new policy directions focus on increasing supply, controlling prices, and curbing idle properties, buyers and investment capital are also placing greater emphasis on legal clarity, asset quality, and the actual efficiency of properties.
Avison Young said success in the next growth cycle would be determined by asset quality rather than the pace of portfolio expansion or unrealistic expectations of price gains. Assets that meet core demand, generate stable cash flow, and operate efficiently are expected to recover faster than speculative properties.