Vietnam’s real estate market has been experiencing a surge in property prices, prompting the government to implement intervention measures to prevent a potential market bubble. The government’s cautious approach reflects its commitment to stabilizing the real estate market as it emerges from the impact of the COVID-19 pandemic.
Decree No. 96/2024/ND-CP, also known as Decree 96, has been introduced to address the alarming increase in real estate prices. This decree outlines specific measures to be taken if property prices rise by more than 20 percent over three consecutive months. The Ministry of Construction (MoC) is tasked with proposing regulatory measures in response to such price hikes, guided by the government’s directives and market assessments.
Various government agencies have been delegated specific responsibilities under Decree 96. The Ministry of Planning and Investment will oversee investment and bidding policies, while the Ministry of Natural Resources and Environment will handle land policies. The Ministry of Finance will manage tax and finance-related measures, and the State Bank of Vietnam will develop credit policies. Local People’s Committees will monitor real estate projects in their respective areas, and the National Assembly will review and approve proposed market regulation measures.
Despite a previous period of stagnation, Vietnam’s real estate market has shown no signs of decline. In Ho Chi Minh City, house prices have been steadily increasing, with downtown areas experiencing double-digit growth. Searches for land sales have seen significant growth, indicating a strong demand in the market. In Hanoi, apartment prices have skyrocketed, along with prices for private houses, land, villas, and shophouses.
Property developers in Vietnam are preparing for anticipated price increases in 2026 by expanding their land holdings. Recent amendments to the Land Law are expected to lead to significant land price surges, prompting developers to secure land in advance to maintain a competitive edge in the market.
Looking ahead, Vietnam’s real estate market is expected to heat up further as it continues to recover. Major companies with substantial resources are likely to dominate large-scale projects in prime locations, while smaller developers may need to adjust their strategies to focus on more affordable property segments.
In conclusion, Vietnam’s government intervention in the real estate market aims to prevent excessive price hikes and maintain stability in the sector. With careful monitoring and regulatory measures in place, the market is poised for continued growth and development in the coming years.
