HANOI: Vietnam’s real estate market is currently driven by real demand, transparent legal frameworks, and a more positive foundation thanks to new legal corridors, with expectations of a clear recovery in 2026.
Nguyen Quoc Anh, deputy chief executive officer (CEO) of Batdongsan.com.vn made the remarks at the Vietnam Real Estate Conference held in Hanoi last week.
Anh said that entering the last quarter of the year, interest rates have started to tick up as many commercial banks recorded declining deposits, pushing 12-month deposit rates to 5.3% to 5.5% per year.
He stated that the slight increase in deposit interest rates is merely technical, aimed at rebalancing capital costs after the deep decline in 2024.
Lending rates are mostly around 6% to 7% per year – higher than the 5% to 5.5% offered in young-buyer incentive packages, but still supportive for transactions.
“Additionally, the current market pressure mainly comes from capital demand for public investment and production, while low deposit rates are pushing money flows toward real estate and securities,” he said.
He also argued that banks’ slight increase in deposit rates at year-end is a positive development because it helps the system better balance long-term capital, creating a stable foundation for the next market cycle.
At the conference, Dr Can Van Luc, chief economist at Bank for Investment and Development for Vietnam and a member of the Prime Minister’s Economic Advisory Council, affirmed that interest rates are becoming the ‘decisive factor’ shaping the new recovery cycle of Vietnam’s real estate market.
The 2023 to 2025 period has demonstrated that interest rates serve as an essential ‘soft lever’ for Vietnam’s real estate market – supporting real housing demand, helping developers overcome difficulties, and enabling a more stable and sustainable recovery cycle, no longer dependent on speculation.
Luc expects interest rates to remain a major force shaping the market in 2026 and beyond.
However, he said that interest rates, while necessary, are not sufficient on their own.
The overall health of the market also depends on project legal frameworks, new supply, procedural reforms, and market confidence.
Low interest rates only maximise their impact when accompanied by a transparent ecosystem and supply that meets real demand. From a market perspective, Anh said the market this year is much ‘calmer’ with a clear shift toward end-user-driven products.
Although buying and selling interest has yet to return to the 2022 peak, capital is now concentrated in legally transparent products, reflecting investors’ cautious sentiment after the 2022 shock as well as the market’s more sustainable development trajectory.
According to the deputy CEO of Batdongsan.com.vn, new legal corridors from the revised Land Law and Real Estate Business Law have increased transparency and improved project-development procedures.
Land prices in 2025 in many localities have remained below the 2022 peak, helping the market maintain stability and reduce risks.
He said that there are currently no signs of widespread land fever. — Viet Nam News/ANN
