If you thought $700,000 USD for a 4-bedroom in Saigon was steep, get ready for more surprises! Hold onto your hats—this is just the beginning of the story unfolding in Vietnam’s house market. In today’s episode, we’ll explore whether Vietnam’s house market is genuinely rebounding after last year’s collapse or if it’s merely an optical illusion designed to lure investors into a sinking ship.

We’ll dive into the legislative changes coming in 2025 that aim to level the playing field for Overseas Vietnamese, contrasting this with the challenges foreign investors face without these advantages. We’ll peel back the layers to determine if the Vietnamese real estate market is truly a land of opportunity or just a mirage crafted by clever marketing.

The Real Situation in Vietnam House

Let’s rewind and set the scene. Over the past few years, the Vietnamese government has slashed prices and launched incentives to attract buyers. But the results have been less than stellar. Most transactions occurred within the $76,000-$96,000 price range, primarily in early 2022, with sales plummeting in the second half of the year. Ho Chi Minh City witnessed its lowest number of new housing projects in a decade, with only 180 projects initiated.

What went wrong? In short: skyrocketing prices, stringent banking regulations, and global uncertainty have investors holding onto their wallets. The shortage of new projects can be attributed to developers’ hesitancy. Cautiousness among potential buyers, and delays in legal and construction procedures.

To give you an idea, the townhouse and villa market saw a 92% drop in transactions in key regions last year. With over 1,300 real estate companies declaring bankruptcy in 2023. The market was in freefall, hitting a five-year low, with Binh Duong Province contributing to 45% of this decline. Notably, there was a 21% increase in companies temporarily suspending operations compared to 2022. While those awaiting dissolution procedures surged by 29%.

Stay with us as we uncover the hard truths and hidden dynamics of investing in Vietnam, supported by data and unbiased expert analysis.