Vietnam’s real estate bubble has led to a recent drop in prices. Stated-owned bank, Vietinbank, recently announced the sale of 358 foreclosed properties, including four- and five-star hotels, totaling US$337 million. Other banks like BIDV and Sacombank have also been selling collateral assets this year to restructure their credit portfolios. Despite efforts to lower prices by property developers and banks, local investors remain disinterested.

Current Price Of Vietnam Houses

Post-bankruptcy, individuals and developers are offering discounted real estate in Vietnam, especially in Ho Chi Minh City’s eastern area to cover debts. Average prices dropped by around US$38,100. Vietnam houses like townhouses and villas in nearby provinces have also seen million-dong price reductions. Surprisingly, even high-end District 1 apartments have decreased in price. Recently, a District 1 property developer sold a project for 57% below its initial valuation.

The price decline in District 1, known for luxury properties, is surprising but real. Outskirts land prices have fallen by 30-50%. Market conditions have forced property brokerages to sell assets, downsize offices and payrolls, and diversify services. Reports indicate 70-80% of northern brokerages have closed or downsized by 80-90%. Medium-sized brokerages, once employing 100-200 staff, now retain just a dozen employees.

There Are Two Key Factors Contributing To The Downfall of Real Estate in Vietnam 

Check out this video as Attorney Ken Duong will discuss the reasons why Vietnam’s real estate collapsed. He shares his opinion on whether you should do business in Vietnam or invest in Vietnam’s real estate market right now.