Buyers cannot purchase an apartment in Vietnam not because of high prices but rather due to a supply shortage. For example, in Hanoi, only 2,040 new residences were delivered in Q1. This figure is down 30% quarter-on-quarter and down 27% year-on-year. A similar picture is observed for townhouses and villas.
According to property consultancy Savills, around 7,000 new apartments are due to be delivered in 2023. The largest share of offers will be in the areas of Dong Anh, Me Linh, Soc Son, Hoa Lac, and Xuan Mai.
New supply is so limited because many developers are forced to suspend projects or reduce the number of planned units. Often the main reason for downtime is the local laws regarding the transfer of titles to development land plots. The bill containing proposals to exclude the possibility of establishing specific lengths of property ownership in condominiums is just as dubious.
While buyers cannot find fitting apartments and developers are taking a break due to being unable to implement planned projects, the real estate market cannot gain stability.