Vietnam PM demands probe into sky-high apartment prices

Prime Minister Pham Minh Chinh has pressed for answers on why apartment prices remain persistently high and ordered clarification on whether real estate market manipulation, including hoarding, price rigging, and speculative practices, has occurred.

PM Chinh, who is also head of the Central Steering Committee on the Housing Policy and Real Estate Market, chaired the committee’s first session in Hanoi on Monday to review the sector’s performance over the first nine months of this year.

The hybrid meeting linked online with 34 provinces and cities, setting the tone for what’s next through year-end.

Real estate, he said, is the engine revving Vietnam’s economy and urban growth, pumping cash into construction, finance, materials, and services.

Since the Government’s term began, social housing has been a core part of its agenda, a fulfilment of the Party’s pledge to ensure every Vietnamese has “a home to settle and prosper”.

This mission demands a surge in supply and a restructuring of real estate products, with a focus on affordable options for low-and middle-income families. Yet, he was candid about the shortfall: both social housing and the broader property market have failed to meet expectations, leaving aspirations unfulfilled.

“We must face these challenges squarely,” he insisted, calling for a rigorous reckoning to elevate urban living standards and dismantle persistent obstacles.

The leader advocated for policies to boost supply and balance demand through market mechanisms, while identifying institutional and policy barriers that stifle progress. He tasked the committee with analyzing root causes, drawing lessons, and crafting bold solutions to drive housing and property policy breakthroughs through 2026.

According to the committee, Vietnam recorded over 1,000 commercial housing projects in the first nine months of this year, with 960 under construction, packing nearly 149,000 apartments and over 249,000 detached houses.

On the social housing front, 692 projects are planned, with over 633,000 units. Of those, 165 projects with over 110,000 units are done, hitting 59.6% of the 2025 target. Plus, more than 334,000 rundown or temporary homes have been refurbished nationwide.

Real estate deals numbered 430,000, flat from last year. The market showed signs of recovery but remains uneven. Condominium sales edged up in major cities, mostly mid-range, while land plot transactions slowed.

As of July 31, property sector loans had hit over VND4 quadrillion ($153.8 billion), up 17% from late 2024, making up 23.68% of all credit in the economy.

A VND30 trillion stimulus package under the Government’s Resolution 02/NQ-CP has drawn 17 commercial banks, with outstanding loans exceeding VND 2.3 trillion. Loans under the Decree 100/2024/ND-CP surpassed VND19 trillion, while cash for social and worker housing and old apartment renovations under the Resolution 33/NQ-CP are picking up steam.