Solution to reduce apartment prices?

VTV.vn - In the first 8 months of 2025, apartment prices in Hanoi and Ho Chi Minh City increased by an average of 42%, pushing the dream of home ownership of millions of families further away.

According to the Ministry of Construction , in the first 8 months of 2025, apartment prices nationwide increased by an average of 42% over the same period last year, while land prices jumped 44%.

Prime Minister Pham Minh Chinh emphasized at the Government meeting on September 23 that there must be fundamental solutions to reduce housing prices to a reasonable level, helping urban residents have the opportunity to settle down.

The Prime Minister 's reminder comes as the real estate market is witnessing a paradox: house prices are climbing to record highs despite piling up inventories.

Rising house prices, a distant dream

According to Property Guru Vietnam, in the first 8 months of 2025, apartment prices increased by 42% compared to the same period last year, and land prices increased by 44%. In Hanoi, the average selling price in the second quarter reached 80 million VND/m2, an increase of 33% compared to 2024. In Ho Chi Minh City, the number of listings increased but demand remained the same or decreased, showing that the concern about payment is growing.

Apartments under VND2 billion – the price that a middle-class family can afford after many years of saving – are now becoming rare. Mr. Le Thanh Tung, General Director of ID Homes Company, commented: “High housing prices not only make it difficult for the urban poor to buy a house, but also restrain purchasing power, slowing down consumption growth.”

When a household has to spend more than half of its income on housing, spending on health, education and entertainment will be squeezed. The vicious cycle of “rising prices – falling demand – distorted markets” becomes more and more evident.

Rising housing prices not only make it harder for the urban poor to buy homes, but also restrain domestic purchasing power, dragging down consumption growth.

Businesses "suffocated" by inventory

Not only people, but real estate businesses are also struggling because of the huge amount of inventory. A report from the Ministry of Construction shows that by the end of the second quarter of 2025, the country's real estate inventory reached 25,294 products, a sharp increase over the same period.

In Ho Chi Minh City, Savills recorded 5,400 primary apartments for sale in the second quarter, 70% of which were unsold. The total supply in 6 months reached 6,800 units, of which 75% were unsold. The absorption rate was only 45%.

More than 100 listed real estate businesses are holding inventories worth VND531,000 billion, up 11% compared to the beginning of the year.

According to Mr. Nguyen Quoc Anh, Deputy General Director of Property Guru Vietnam, the price increase does not come from real demand but from the growth of money supply, scarcity of primary supply and speculative confidence. The market is therefore unbalanced: the high-end segment is in surplus while affordable housing is increasingly scarce.

Housing prices will decrease if there is close coordination between the State, businesses and society to create a housing foundation for urban residents.

Solutions to pull down housing prices

Experts say that we cannot expect the market to self-regulate. Strong measures are needed to bring housing prices back to a reasonable level, as directed by the Prime Minister.

Dr. Can Van Luc, a member of the National Financial Policy Advisory Council, emphasized: “The licensing procedure must be shortened to 6 months and land prices must be transparently controlled to prevent speculation.” He said that only when the legal system is simplified can social housing projects be expanded.

An important solution is to boost the supply of houses under VND2 billion. The government aims to complete 100,000 social houses by 2025, of which Hanoi and Ho Chi Minh City need specific targets and a preferential credit package with an interest rate of 4-5%.

The State Bank is also recommended to tighten speculative lending, prioritizing capital for the mid-range segment and social housing. Localities should impose high taxes on abandoned land or long-term inventory, forcing businesses to sell to reduce liquidity pressure.

In the long term, it is necessary to support people in financial planning. Home buying advice programs, combined with national savings funds, will help the younger generation have a realistic housing strategy. Housing must be considered a basic right of citizens, not just an investment channel.

HIGHLIGHTS:

- Apartment prices increased by 42% in the first 8 months of 2025.

- Real estate inventory of 531,000 billion VND - record high.

- National target: complete 100,000 social houses by 2025.

Source: https://vtv.vn/giai-phap-giam-gia-nha-chung-cu-100250923164231486.htm